First Comes Love, Then Come Mortgage: 7 Secrets of Homeownership Newlyweds Need to Know

Homeownership is one of the many things newlyweds look forward to. Amid the excitement of building a new home and family together lies a complex reality filled with challenges, shared responsibilities and hidden costs.

Discover everything you need to know about homeownership to help you make informed decisions.

 

1. It’s a Joint Financial Responsibility

Homeownership as a married couple is a shared responsibility, meaning you must share mortgage payments, insurance, property taxes and maintenance costs.

Consequently, pooling your resources boosts your purchasing power, allowing you to afford a more desirable property. Learn these facts before you start looking for your new home:

 

Credit Scores

Mortgage lenders examine you and your spouse’s creditworthiness to measure your ability to manage debt responsibly. As with anything, the higher your score, the greater your chances of securing your dream property.

Conventional conforming loans often require a minimum credit score of 620, while some loans only need at least 580.
 

Monthly Income

How much you make together will determine how much property you can afford. Consider how much of your joint income you will set aside for home fees.
 

Financial History

Student loan debt is a common problem among young married couples. Your debt-to-income ratio is an indicator of how much mortgage you can afford.
 

Future Goals

Discuss any major plans, such as a career shift, the number of children you plan to have or other investments, that may affect your current and future financial situation.

 

2. Knowing Your Desired Home Matters

You need ample time for house hunting. Don’t expect you to fall in love with the first property you’ll see. Do you prefer a two-story house or a bungalow? If you plan on having children, how many rooms would you like? Knowing what you want can help prevent buyer’s remorse. Around 82% of homeowners regretted their purchase — don’t be easily distracted by fancy finishes and furniture during a home tour.

The location also matters. For instance, properties near high-rated public school districts can be 77% more expensive than lower-ranking educational institutions.

 

3. Your Home Insurance Is Your Protection

Home insurance provides financial protection if a destructive occurrence, such as theft or natural disaster, damages your property or possessions.

Homeownership often brings significant commitments as you and your partner embark on this new chapter. Insurance is your safeguard against the costs of unexpected disasters.

4. Hidden Costs Are Expensive

Prepare your wallets for the unexpected costs of managing your own home. U.S. homeowners pay an average of $18,000 for hidden homeownership costs. No matter where you live, ensure to include some cushion in your budget to absorb the shock of these expenses.

Pay attention to older homes while house hunting. They are likely to require more maintenance and repair costs. They may also need new HVAC and security system updates.

 

5. Legal Considerations Are Essential

Decide whether you’re getting a joint or individual mortgage. Use your credit scores and financial capabilities to determine which route to take.

• Joint mortgage: Combining you and your spouse’s assets means greater purchasing power, making it easier to pay the mortgage due monthly. However, if one party stops contributing, it can financially strain the other.
• Individual mortgage: This is ideal if you have a significantly higher credit score than the other. However, this could mean an increased financial burden on one partner.

Even if only one individual is included in the mortgage, they can still have an ownership stake in the property. The mortgage holder doesn’t mean they automatically own the home as long as both partners’ names are on the deed. Some popular ownership methods include:

• Tenancy by the entireties: You and your spouse are given undivided interest in the property. It comes with a right of survivorship — when one spouse dies, the living spouse assumes 100% ownership of the home.
• Tenancy in common: You both receive a percentage of the house, which can be equal or unequal. This doesn’t include the right of survivorship.
• Joint tenancy: You both will receive equal ownership rights.

 

6. Neighborhood Dynamics Are Important

If you’re planning to live in a homeowners’ association (HOA) home, be aware of the fees and rules to follow. You should also consider the noise levels and activities in your neighborhood. For instance, you might not want to live near a busy street if you enjoy morning walks.

 

7. It’s More than Just a Financial Purchase

Buying a home with your spouse is also an emotional investment. The whole process can be stressful, so you need to support one another. Aside from that, you must also learn basic home repair skills, such as fixing a running toilet, removing mold and patching a hole in the wall. Acquiring these skills will help you and your partner save on hefty repair costs.

 

Tips for Acquiring Your Dream Home

Consider these tips to get you closer to your dream property.

1. Speak With a Professional Real Estate Agent

Hiring a professional can make the homebuying process more manageable. Interview a few agents and compare their experience. See which one best fits your needs — do they offer attractive discounts? Are they knowledgeable about your ideal location?
 

2. Assess if You Want a Starter or Forever Home

Each option has pros and cons. Talk with your spouse to make the best housing decision for your finances and future goals.
 

3. Enjoy the Process

Homeownership is a challenging topic to navigate as newlyweds. However, there’s still beauty in finding a suitable space for you and your spouse to grow as a family together. It’s a milestone — focus on the positive aspects to make the process more bearable.

 

Get Your Dream Home

You and your partner can secure your dream property with careful planning and preparation. Homeownership may be filled with ups and downs, but the rewards can far outweigh the challenges, especially if you have your spouse on your side.

 

 

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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