11 Tips For Newlyweds Buying a Home

Congratulations on your wedding and decision to buy a home together!

When newlyweds buy a house together, they make a significant financial commitment, so feeling overwhelmed is normal.

Buying a house is a stressful but exciting experience, and having your new partner by your side can improve the process.

Remember that buying a home is a big decision, so take your time and make sure you’re both comfortable with the process and the home you choose. Good luck!

Texas is a community property state, and what does that mean for your home purchase?

1. Determine your budget

Before you start looking at homes, it’s essential to determine your budget. Consider your combined income, expenses, and any debt you may have. This will help you determine how much you can spend on a home.

2. Plan for future expenses

In addition to the home’s purchase price, you should plan for future costs such as maintenance and repairs, property taxes, and insurance. First-time homebuyers often overlook these expenses, and failure to plan can be a financial disaster. 

3. Hire a real estate agent

A good real estate agent can guide you through the home-buying process, provide valuable insights about the local market, and help you negotiate the best deal. Hire someone who will act as a Buyer’s Agent and put your interest first.

4. Get pre-approved for a mortgage

Getting pre-approved for a mortgage will give you a better idea of how much you can afford and help you narrow your home search. Here are some things you need to be aware of before you start.

5. Know your credit history

Your credit scores are key factors in whether, as newlyweds, you’ll be approved for a home loan.  What interest rate can you get for your mortgage? That depends on your credit scores.

Credit scores are based on the length of your credit history, the number of accounts you have, and the number of payments you’ve missed. Most buyers need a credit score of at least 620 to buy a house. A higher score will earn you a better interest rate.

Obtain a copy of both credit reports before you begin your home search. This will confirm that you have the creditworthiness needed to become a homeowner, and it can show you what areas you may need to work on if you want to get better mortgage terms.

Some newlyweds find that one spouse has excellent credit and the other has poor credit. In this case, the partner with the higher credit score could apply for the mortgage in their name alone. However, both spouses should be listed on the property title. Understand that Texas is a community property state.

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6. Choose the right location

Consider the home’s proximity to work, schools, and other amenities that are important to you. Be sure you and your spouse have access to essential things. With more work-from-home options, having lightning-fast internet is more important than ever.

7. Consider your current and future needs

Before you look at any homes, both partners should have a general idea of they’reey’re looking for. First, determine whether you want to purchase a starter home or a house you’ll live in for decades. Most real estate experts suggest that you only buy a home and are prepared to live in it for at least five years. However, your needs in the next few years may differ greatly from those in 10 or 15 years. 

In addition to considering space and location, you must consider your budget.

• How much money can you spend on a monthly mortgage without feeling financially strained?
• Are you expecting any major financial changes in the next few years?
• Be careful not to rely solely on your mortgage pre-approval for this step.
• You might be approved for a large monthly payment, but that doesn’t mean you can realistically afford it.

Newlyweds typically have more success searching for homes at the lower end of their price range so that they have some flexibility in their budget as they adjust to life as homeowners.

8. Be ready to compromise

As a newlyweds, you and your spouse aren’t strangers to compromise. Although compatible partners see eye-to-eye on many ideas, no two people will agree on everything. Learn to make sacrifices and meet in the middle.

Both partners should list their priorities for the new house, including location, size, number of bedrooms, or the amount of renovation needed. Then, prioritize your list. When comparing the two lists, be prepared to sacrifice some of the lower items so both can fulfill the most important needs.

9. Decide on your must-haves

Discuss with your spouse what you both want and need in a home. This will help you focus on properties that meet your criteria. It will also help you make a checklist and prioritize for both of you.

10. Be aware of predatory loans

Working with a trustworthy real estate agent will help you avoid bad sales and predatory loans. If something seems too good to be true, consult your Realtor® or financial expert.

11. Get a home inspection

Before finalizing the purchases, getting a professional home inspection is essential. This will help you identify any issues with the home that may need to be addressed before you move in. Again, the guidance of your real estate agent will be invaluable during this step.

Conclusion

As newlyweds buying your first home, take the time to do your research and make sure you’re both on the same page. The joy and excitement of finding the perfect home can be well worth the effort.

Contact a North Point Agent to get started!