Buying a home with your significant other is a milestone you’ll need to prepare for. Before you purchase a home, however, here are a couple of pointers you will need to remember to make the home buying experience smooth and stress-free.
- Your credit rating is important.
Just because your purchasing a home with your partner doesn’t mean you won’t need to take care of your credit score. You and your partner should build or improve your individual credit ratings before applying a loan as it will lead to a higher chance of mortgage pre-qualification and even a low interest rate.
One of the best ways to improve your credit score is by paying off your outstanding debt. Homeowners need to have a debt ratio total of at least less than 40 percent of their income.
- Pool funds for unexpected costs.
A couple of things will set you back in purchasing a home. Aside from the sale price and the down payment, you’ll need to pay for other associated fees and emergencies. To make sure you and your partner have enough money to cover unexpected costs such as repairs or inspections, save at least $10,000 before purchasing a home.
- Work out the living expenses.
Living with the love of your life doesn’t mean it’s all rainbows and butterflies. There are expenses, such as utility, electricity, and property taxes. To offset living costs, experts advice couples to categorise their expenses into three categories: comfortable, liveable, and survival.
You and your partner should also consider splitting bills to ease the burden of paying for monthly dues. As a couple, you should also decide if living on one paycheck is doable for both of your needs.
- Get a real estate agent.
Working with a reputable real estate agent with local expertise will smoothen out a good deal of the home buying process. He or she will help you straighten out your finances, shop for a mortgage loan that fits your needs and lifestyle, and find the perfect home for you and your partner.
Check this page for more of our home buying resources.