Are you and your fiancé thinking about buying a house right after your wedding" While many couples decide investing in a home together is the right move, this isn?t always the case. From a financial consideration, buying rather than renting is usually a good idea. Perhaps the market is perfect in your area, with low prices and decent tax credits available. There are a number of very important factors to consider before reaching out to a real estate agent.
Here are a few things you and your soon-to-be-spouse should discuss prior to buying a home together.
Can You Afford to Purchase a Home"
Are you and your fiancé may be financially ready to purchase a home together" How do you know if it?s the right time"
Here?s what you need to know about being financial ready to buy a home:
You and your future spouse should have a good credit score. A score of 750 or higher is best, as you?re more likely to receive lower mortgage rates. An FHA government home loan can be approved for credit scores in the low 600s.
Have 10-20% in cash available for a down payment. Obviously, this amount will vary depending on the cost of real estate in your area. The more you can pay upfront, the lower your mortgage payment will be.
Don’t forget to factor in principle, interest, taxes and insurance (known as PITI) when making your budget for housing expenses.
While many buyers negotiate out of paying closing costs, it?s smart to have the funds set aside anyway.
It?s always best...