From Honeymoon to House-Hunting: What to Know About Post-Nuptial Homebuying

Once you’ve experienced your dream wedding day and enjoyed every moment of your honeymoon, you and your spouse will likely start thinking about moving. Many couples buy a house after their wedding to begin their new life together and chase their goals, like expanding their family or building their dream home.

Here’s what you should know about post-nuptial homebuying to prepare you for the experience. You and your spouse can plan every step and avoid any uncomfortable situations.

 

1. Reflect on Your Savings

After spending so long saving for your wedding, it’s time to reflect on what you have left over from your big day. Sit down with your partner to discuss existing savings accounts or investments you could cash for a down payment.

The Federal Reserve recently found that the average American under 35 has $20,540 in savings. However, that could be more than you have if you’ve experienced financial hardship. Knowing what you have in the bank is crucial when starting your house-hunting experience. Once you know your baseline, you can determine how much you can save monthly and how quickly your savings will grow.

 

2. Create a Dream List Together

Grab a notepad and pen during your next date night together. It’s vital to know what you both want in your dream house. Write every detail down, like a first-floor living room or a pool in the backyard. Have fun daydreaming together without worrying about things like price or availability.

After you have an extensive list, highlight at least three deal-breakers. You might tour a home that doesn’t have the flooring you want and eliminate it because you don’t want to pay for an immediate replacement.

Comparing what you do and don’t want in your future house will give you an idea of the price range for your dream home. The final number will depend on size, location and amenities. If you find comparable properties on listing sites that are out of your price range, you’ll know to narrow your list and adjust your financial expectations.

3. Get Realistic About Your Down Payment

Many people grow up with parents who advise making a 20% down payment on their first home. Although that would make your monthly payment much smaller and potentially eliminate your mortgage insurance fees, it’s not as realistic in the modern-day economy.

Teresa Mears, a personal finance and real estate contributor with U.S. News and World Report, points out how first-time buyers sometimes only make a 3% down payment or skip it altogether. It depends on your income, mortgage rate qualifications and financial history.

Contact mortgage lenders and banks to see what they can offer for the estimated home value you’d like to purchase. You’ll find a private or federal loan more suited to your situation by checking your options.

 

4. Assess Your Credit Scores

The personalized bachelor or bachelorette party you threw to reminisce on nostalgic moments and celebrate with your loved ones may have been fun, but how much money did it add to your credit card debt? Assess your credit scores together to see who has the higher one.

Mortgage lenders use credit scores to qualify people for loans. The average score per American was 714 in 2021, but that doesn’t mean everyone has a near-perfect score. Your debt, credit card spending, and emergency financial purchases could land you in the 600 or 500 range.

Lower scores result in fewer mortgage loan options with higher interest rates. Building your credit might add a few extra months to your post-nuptial homebuying experience. It’ll be worth it when you’ve got a comfortable monthly mortgage payment after your hard work. Focus on reducing your debt and paying your bills on time to get started.

 

5. Establish a Time Frame

You’ll also need to assess how much you and your partner can save each paycheck for your down payment. You may not need to save much if you have investments you could cash or gifted money from relatives.

There are creative ways to throw a few more dollars toward your goals if you’re struggling to save. Use an app to streamline your expenses and understand exactly how you spend money. Research shows that 56% of Americans don’t know how to track their spending. Technology makes that much easier.

Keep your housing situation in mind while revising your budget and monthly spending to put more away. When does the lease on your rental unit end? Having a deadline to move into your new home will affect how much you must save and how quickly you need that down payment in your pocket.

 

6. Discuss the Mortgage Details

When it’s finally time to apply for your mortgage, you should know what to put on the paperwork. Will you have a joint mortgage featuring both of your names? This may not be the best option if one spouse has a low income and high debts. Your terms will be costlier, so it might be wiser to put the spouse with better salary and less debt on the paperwork by themselves.

Did you include your future mortgage in your prenup? How will you pay the monthly payment after moving into your home? Talk about these details to prepare for the final steps in your homebuying process.

 

 

Have Fun House Hunting Together

Post-nuptial homebuying doesn’t have to feel overwhelming. Daydream about what you want for your home, reflect on your financial situation and compare your mortgage options. There are always strategies to cross that budgetary finish line and finally move into the house of your dreams.

 

 

Author Bio: Oscar Collins is the editor-in-chief at Modded, where he writes about a broad spectrum of topics. Follow him on Twitter @TModded for frequent updates on his work.

 

 

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