New American Funding Blog

Yours, Mine and Ours: Home Buying for a Young Couple

By Courtney Lynch   |  February 13, 2015

Make purchasing your first home as a couple simple by planning in advance.

Deciding to buy a house with your partner is both exhilarating and intimidating and there are many facets to consider when committing to such an investment. Your purchase will become the place you call home for the next several years and you must be truly satisfied with your decision. Give yourself time to take into account the most significant factors and start planning for one of the most important and momentous purchases during this exciting time. 

Where you select to buy a new home is one of the most significant factors. Discuss with your partner where you want to reside. Know exactly where you both prefer to live, down to the neighborhood. It is crucial to consider the commute to work, local businesses, crime statistics and other related factors when making your decision. Also figure out which circumstance is more important to you as a couple. This will greatly assist you when selecting a location. 

If you are purchasing a home and plan on relocating after a few years, then the resale value is another important factor to mull over when navigating through various real estate options. Quality schools, well-maintained roads and a good business district are some of the important features that will catch the interest of potential buyers. A great indicator of a home that will have good resale value is the property tax. In addition, this is something that should be factored into your predetermined budget.   

When creating a budget, sit down with your partner and separately list your wants and needs in order from most to least important. Then collaborate and determine what is necessary and what can be compromised. Figuring out what you can afford and making sacrifices right away will help simplify the process. 

Plan to set aside money before moving forward and making an offer on a house. It is important to set a certain amount of money out of your paycheck each month to save for a down payment. This is also good practice for your future mortgage payments. 

Working with a budget is where an experienced Realtor can be especially helpful. Their familiarity and expertise in real estate will help you know where to compromise and also determine alternative options that are available to you. 

Loan application can be troubling when both credit histories are melded together. It's essential to be aware of one another's credit score and make proper adjustments before applying for a loan. 

If there is an issue with either party's financial history, adjusting it is simple. Begin not only paying bills on time, but in full. Plan ahead and allow enough time for credit repair. According to Daily Finance, your score is most heavily impacted by your latest transactions, so start improving your score right away. 

Home inspectors
Before a bank lends you money for a home, they most likely will require a home inspection. This is a paramount step in the process of home acquisition. A home inspection will factor into the value of the home and whether there are any major problems with its overall condition. 

Select an inspector by inquiring what is included in the home appraisal. You want the job to be done as thoroughly as possible. After the inspection, you may want to bring in a contractor to provide a quote for fixing possible issues that an inspector might find. This exclusively depends on how important it is to remedy complications that are on-site and whether it fits into your predetermined budget.  

The conversation regarding the purchase of a home should occur well in advance. Start this exciting journey by giving yourself and your partner the chance to prepare and discuss the primary factors of buying that first home. 

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