Buying your first home together is exciting. However, it’s important to carefully choose a mortgage that meets your needs both now as well as in the future. These steps can help you get the mortgage that works best for you.
1. Have an honest conversation with your spouse
Newlyweds often know a lot about each other, but finances may not have been a topic thoroughly discussed. Before you visit a lender or fall in love with a home, it’s important to understand your financial standing as a couple. Learn these facts before attempting to buy a home.
- Credit score. If one spouse has a significantly lower credit score, it may make it harder to qualify for a joint mortgage. It’s not uncommon for potential borrowers to not know their credit score until it becomes a factor in the loan approval process. Both spouses should check their credit scores early on so they know where they stand.
- Monthly income. Both incomes will be an important factor in determining how much house you can afford.
- Financial history and current debts. Student loan debt is common among younger couples. The debt-to-income ratio is an important factor in determining how much of a mortgage you can afford.
- Future goals. Both spouses should be on the same page when considering the responsibility of a mortgage. If you plan to move within ten years, are planning a major career change, or plan to live on one income after having children, you need to plan for the impact these decisions will have on your mortgage.
2. Speak with a Home Lending Advisor
Now that you have a clear view of your financial health, a Home Lending Advisor can help you explore your options for joint and individual mortgages. They may also be able to share mortgage options you weren’t previously aware of before purchasing a home.
3. Get prequalified
If you’re ready to shop for a home, getting prequalified will help you narrow down your choices. Prequalification shows sellers you’re serious about buying a home. It also helps you determine how much you can afford, so you won’t waste time looking at homes outside your budget. When you are ready to take the steps toward homeownership, we are ready to be your trusted advisors.