How Newlyweds Should Approach the Homebuying World

If you've recently been married or are about to be, congratulations! You're moving into the next major chapter of your life, and it's one where many couples often look into a particular goal: Owning a home together. 

At Primary Residential Mortgage, we're happy to offer a wide range of mortgage loan options for any homebuyer, including government-backed programs like FHA loans and others that are often ideal for first-time homebuyers. Here are some of the important concepts you may be thinking about if you're a newlywed couple looking into your mortgage and homebuying options soon after your nuptials have been completed.

Why Buying is Superior to Renting

While we know that not every single recently-married couple will necessarily have the funds available to immediately jump into a home purchase, it's still something that many newlyweds will eventually look into. After all, there are a lot of advantages that come along with owning your own home rather than renting an apartment or house.

For one, you'll have the ability to customize and change your home as you see fit without having to worry about a landlord objecting or permission to make those changes. Additionally, you'll also be able to build equity in your home over time – something that can come in handy if you eventually decide to sell and move into a larger place down the road.

Of course, there are other reasons why buying rather than renting might be the right choice for you as a newlywed couple. Weighing the pros and cons together can help you decide if purchasing a home is the right next step for your relationship.

Early Steps to Take

If you and your new spouse are interested in buying a home together, there are some early steps you can take to get the process started.

The first would be to start saving up for a down payment. Typically, most homebuyers will need to put down at least 3-5% of the total purchase price of the home as their down payment, though there are loan programs available that could allow for a lower or even zero-down payment.

You'll also want to start thinking about your budget and what kind of monthly mortgage payment you'll be able to comfortably afford. This will help give you an idea as to how much house you can actually afford to buy.

Once you have a down payment saved up and have a good idea of your budget, you can start shopping around for a lender and getting pre-approved for a mortgage loan. This is an important step as it'll give you a better idea of what kind of interest rate you'll be able to lock in and how much house you can afford based on your current financial situation.

In addition, being pre-approved for a mortgage loan can also help streamline the homebuying process as you'll already have an idea of how much money you'll be able to borrow. Contact one of our lenders today to get started on the pre-approval process.

Home Size and Location Factors

For many newlywed couples, some of the most important and nuanced decisions will come down to two key factors: The size of the home you're looking to buy and its location.

As far as size is concerned, it's important to think about your current and future needs. If you're planning on starting a family soon, something that's common among newlyweds, you might want to buy a larger home with more bedrooms and bathrooms. On the other hand, you might not have any immediate plans to start a family and might prefer a smaller home that's easier to take care of. There's no right or wrong answer here – it simply depends on your unique circumstances as a couple.

The same can be said for location. Do you want to live in the heart of the city or would you prefer a more suburban or rural area? Are you looking for a home that's close to your place of work or would you be willing to commute if it meant getting a nicer and more affordable home?

These are important questions to ask yourselves as you start the homebuying process. After all, the size and location of your home will play a big role in not only the price you pay but also your day-to-day quality of life.

Making an Offer on a Home

Once you've found the perfect home, it'll be time to make an offer. This is where working with a qualified real estate agent can really come in handy.

Your real estate agent will help you determine how much to offer based on things like recent comparable sales in the area, the current market conditions and the condition of the home itself. They'll also be able to negotiate on your behalf if necessary and help you navigate any potential obstacles that might come up during the contract phase.

Closing on Your New Home

Once your offer has been accepted, it'll be time to start working towards closing on your new home. This process can vary in length depending on a number of factors but typically takes anywhere from 30-60 days.

During this time, you'll be working with your lender to finalize your mortgage loan and will also be responsible for completing a home inspection and appraisal. Once all of that has been completed, you'll be ready to close on your new home and start the next chapter of your life with your spouse.

For more on what to be thinking about if you're a newlywed couple considering the purchase of a home, or to learn about any of our mortgage rates or related services, speak to the team at Primary Residential Mortgage today.