NEWLYWEDS GUIDE TO HOMEBUYING IN VISALIA PART 2
Last week we wrote about lovebirds and if the newlyweds should be planning to buy their love nest right away.
We pointed out that 35 percent of married Americans purchased their first home together within two years of tying the knot.
We hear plenty about the home-buying challenges faced by unmarried couples, that doesn’t mean that marriage makes this process easy.
“A lot of factors come into play,” says Brandy Wright, a certified financial planner. So before you start swooning over homes in Visalia, Tulare or Porterville, where you envision your bright new future, we recommend you and your spouse be sure to sit down and ask each other these crucial questions first.
WHAT”S YOUR CREDIT SCORE?
Back in your dating days, you two probably talked about everything from where you’ve traveled to your favorite movies. But now, as newlyweds, it’s time to get serious and broach a far less romantic topic: your credit scores.
WHERE WOULD YOU LIKE TO LIVE IN 5 YEARS?
Your future goals will affect which type of home, and loan, is right for you.
For instance, if you’re planning to stay put in the Southern San Joaquin Valley for the foreseeable future, then a 30 year mortgage with a fixed interest rate may make the most sense, since this means your interest rate (and monthly payment) remains constant over the life of the loan.
On the other hand, if you’re planning to move within a few years, say, to a larger home to raise a family or move closer to your in-laws, then you should consider other options. For instance, an adjustable-rate mortgage offers a lower interest rate than a fixed mortgage for an initial period of time, such as three to seven years. After that point, it can adjust up or down based on market indexes.
One thing is certain. You need to contact a local mortgage broker and start planning for your future as soon as possible. Today we will look at two more important newlywed questions: Will one of you be staying home to raise the kids? And what happens to the home if the marriage hits the rocks?
WILL ONE OF US STAY HOME TO RAISE THE KIDS?
Fine, you’ve just gotten hitched, so why rush the discussion about kids? Because this question will affect your family’s income, which is the cornerstone for determining how much home you can afford. A good rule of thumb: “Your mortgage expenses should be no more than 30 percent of your take-home income,” advises Wright.
But keep in mind, you could be paying off that mortgage for 30 years, so you should not only tally how much your family makes now, but also what your anticipate your salary to be in the future. What happens if and when you have kids, and one of you wants to stay home to raise them? That could slash your income in half.
So when anticipating how much mortgage to get, play it safe. Just because you get pre-approved for $1 million doesn’t mean you should buy a $1 million dollar house.
WHAT HAPPENS TO THE HOME IF OUR MARRIAGE HITS THE ROCKS?
Although this is a happy time in your relationship, you need to consider all possible outcomes for your marriage. Translation: If you get hit with death or divorce, you’ll need to work out how to divide your assets.
There are several types of homeownership to choose from when purchasing property with your spouse. The most common is joint tenancy, where each person holds equal interest in the property. Its’ distinguishing factor is that in the event one spouse dies, that person’s interest in the property automatically conveys title to the surviving spouse (also known as (Right of Survivorship).
Meanwhile, under tenancy in common, each spouse has a distinct, separately transferable interest in the property. This might be a sensible form of ownership if one spouse makes a higher percentage of the down payment or monthly mortgage payments and wants to guard his or her investment in the event of a divorce.
You’re right, it’s not exactly an upbeat discussion, but you never know what could happen once the honeymoon’s over.
In the meantime, as I said last week, have a great time loving each other and work hard at keeping your marriage together.
Country Club Mortgage
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400 E. Main St. Suite 120 Visalia, CA 93291
6795 N. Palm, Suite 101 Fresno CA 93711
4211 Spring Tree Ln. Bakersfield CA 93314
1204 Nipomo St. San Luis Obispo CA 93401
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