While the majority of home buyers are married couples, fair housing prices are leading more and more married couples (who might never marry) to purchase homes together. From 2001 through 2011, married couples accounted for almost 62% of home buyers, while unmarried coupled made up a lousy 7.5%.
Weddings are expensive, which might be one reason why couples are putting off marriage in lieu of homeownership. Instead of continued rent, many couples want to make their money work by paying it toward something--but they aren't all that interested in marriage quite yet. Modern love looks different from that which our parents shared--but homeownership, in all of its forms, is exciting.
If you find yourself in a similar situation, there are a few tips and tricks that can help you along your way.
First, you'll need to look at both of your financial statements. This includes bank statements, credit cards, student loans, any retirement accounts, etc. Share your credit reports as well--you'll need to know what you're getting yourself into, married or not.
Next, figure out what you both think you can afford. Look for houses that fall within the range, and don't tempt yourself by going outside of those restrictions. Decide how much each of you is capable of contributing and decide whether or not you'd like to apply for a home loan together. Keep in mind that a house payment should not account for more than 30% of your monthly income.
You might decide to make equal payments, or you may opt to have each contributor pay 30% of their individual earnings, making the payments a bit more fair.
No matter what, you should sign a contract. While you may not be able to imagine a situation in which the two of you split up, things can happen. A home is a big purchase, so it's important to cover all of your bases.
Your contract might include things such as who gets the house in a split up, how much of the house each person owns (it can vary based upon your agreement), and who gets the house if one partner passes away.
You'll also want to review the tax implications. Many people choose to own homes because they allow for you to deduct mortgage interest payments come tax time. If you're combining separate income tax returns, you'll both get mortgage deductions, though they'll be different.
Finally, if you're planning to be married eventually, you'll need to take expenses related to your wedding into account. Homeownership is not without its costs, so you may consider cutting back on your wedding related expenses. You might also consider waiting to buy a house until after the marriage is official. You'll get tax breaks and the process will be easier.
Luckily, no matter your thoughts or timeline for marriage, there are options to get you into a house that you own at any stage of life, provided you're financially secure and able to tackle the task. A little research, some planning, and a lawyer will get you squared away--so happy hunting!
Article Source: http://EzineArticles.com/?expert=Heather_Nicole_Hamilton
Article Source: http://EzineArticles.com/8703681
No comments:
Post a Comment