Engaged couples rush into buying a home before they finally tie the knot. They often have to give up their own apartments in favor of living together. True to their vows, they want to start a family under one roof. It will be the start of their life together, so they want to begin it in a fresh new place and, together, they will decorate it according to their family plans. However, the idea of getting into a huge financial responsibility may not be attractive to all. It may sound like a happily-ever-after life, but for your partner it may appear to be a trap by lenders. Unless you pay for it in cash, you have to consult your partner before surprising them with the new house.
Talk about It
Whether you like it or not, a mortgaged house is a huge financial obligation for both of you. Even if you claim all the accountability, it will affect your partner's financial status later on. Although it is an excellent surprise, you have to reveal your plans to your future spouse. Talk about your plans together and arrive at the same decision. It is difficult to surprise them with a new asset that will later on become a burden in your married life. To avoid blaming each other in the end, a mutual decision is crucial.
Your wedding day will cost you quite a lot from your savings. Although a new house is appealing, starting your married life with a new mortgage can be difficult. Both of you will be adjusting to changes in your needs and financial status. Overwhelming yourself with big obligations can create holes in the foundation of your marriage. Before you go into a contract, analyze your debt and income flow. Agree on how your financial setup will be. Are you going to maintain one account or separate bank accounts? What will be the division of expenses? Once you settle on these major issues, you can decide whether it is the right time to apply for a home loan.
Consider the Payment
Some companies offer houses that reach up to 50% of the gross income of couples. However, if you decide on getting your new place, make sure you do not overload yourself with the payments. Most experts encourage newlywed couples to purchase a home that will cost them not more than 25% of their gross income. Beginning a new life with another person can be challenging; therefore, do not add the stress of paying your amortizations to the challenges you already have.
Getting a new home is a huge commitment. It requires 10 to even 20 years of your life. Do you want to start your life with a huge financial commitment? The stresses that come with getting married are enough to face. Do not start your married life fighting and arguing about money.
Acquiring a new home should never be a rushed decision. Getting married does not mean living in a new home right away. Everything can wait. Get your investments once you have cleared your financial issues together.