Many of today’s couples want to experience what it’s like to live together before they tie the knot. As commitment looms, it only makes sense to stop renting and buy a house – or does it? There are a variety of factors couples should consider before buying a house together.
Decide on One or the Other
Buying a house and getting married can drain finances. It is crucial for you and your partner to decide which is more important right now. If buying a house before getting married is your goal, there are still many things to consider.
Both of Your Credit Scores Could Matter
If you buy a house before marriage, you will likely be assessed individually. In the best-case scenario, you and your partner both have excellent credit and can secure a loan. If one of you has poor credit, it may be better to buy a house after marriage to increase the likelihood of obtaining a loan. Once you’re married, the individual with better credit has the option of applying for the loan on his or her own.
Student Loan Debt Will Be a Factor
One of the biggest hurdles for young couples looking to purchase their first home is outstanding student loan debt. The amount you owe affects your credit score which, in turn, will affect the loan amount you get approved for and the interest rates that follow. Depending on your situation, it may be in your best interest to focus on paying off student loan debts – and your wedding – prior to purchasing a home.
Marriage Status Doesn’t Change the Mortgage Rates
Mortgage rates are a huge factor when determining the best time to buy a home. You want to get the best rate possible. However, your marriage status doesn’t affect mortgage rates in any way. Whether you buy a home before or after marriage makes no difference in the loan amount and interest rate you’ll qualify for unless your credit score changes.
Start the Excitement of Marriage Sooner
Inarguably, one of the best things about buying a home before the wedding is being able to start life together before you exchange vows. This allows you to enjoy the joy and excitement of married life well before the big day. Living together is also a great way to bond with one another on a new level.
Consider State Laws
If owning a home together is a high priority in your relationship, you’ll want to research state laws. Some states do not allow couples to share legal ownership of a home if not legally wed.
Deciding whether to buy a house before marriage depends on a variety of factors. Aside from love and commitment, there are legal and financial issues that should be considered to ensure that you make the best choice.