Finding a real estate property for newlyweds can be very stressful for some people since most of them are not aware of the best deals that can be made in the market for newly married couples. Other times, newlyweds are worried about the price of the property that they are going to buy. There are some steps that you need to take before purchasing the property.
Whether you plan to buy before or after the wedding, you will still need to fix the paperwork and other requirements for the mortgage in due cause. Before finally committing to the process, you need to have your “house” in order. We can do this by ensuring your credit history is fixed as well as the money for a down payment and proof of income. Therefore, as you celebrate your big day, have your processes ready because life just got real.
Check professional advice for newlyweds on real estate in the discussion below.
Set your credit right
Many factors inform your loan eligibility. One of these critical variables is credit history. This aspect involves your real account and the credit scores earned during this history. Now, you might be new to borrowing; that is, your history is not that old, but you have a reasonably good score. What you may not know is that the lenders also check your oldest debt account. A high score on an old account has a more significant bearing than a new account. Therefore, if you know there may come a time that you will need to apply for a mortgage, start early to repair your history to enhance your credit scores.
Improving your credit scores requires early servicing of your debts, timely repayment of your credit card balances and ensuring that your credit utilization ratio is relatively low – 30% is an ideal figure to keep your debts.
Late loan repayments only serve to drag your scores further down, and before you know it, your rates are too low to even guarantee you a personal loan for a honeymoon.
Pay your bills on time
Sometimes somehow your utility bills have ways of showing themselves in your credit rating. Therefore, it is advised that you remit your rental, electric, water and a host of other bills in time to safeguard your credit ratings with the bureau. Lenders are apprehensive about advancing loans to people who are unable to honour their financial obligations.
Mortgage underwriting process involves checking your eligibility for home financing. If the process happens to dig out some undesirable truths about your credit life, the lender may feel less than inclined to approve a loan to such individuals.
Furthermore, you should ensure that the debt to income ratio of both of you is at stellar levels. Things like stude4nt loans, Auto loans and other personal loans are the things that will make your DTI ratio look like shambles. These are the things that a lender looks at to give a red flag about your eligibility.
Creating a sufficient budget can be challenging for many people. This is why there are financial advisers who are ready to offer their expert advice on this subject and enable you to have a sufficient base of reference for your financial decisions. Budgeting involves giving up some of the things you love indulging in, but they have no financial bearing and you can do without them. This includes buying an expensive latte from a coffee shop every working day.
There is a difference between budgeting and saving up cash for your down payment. Budgeting helps to open up more money to trickle into the savings account. However, you are always advised to create a monthly goal to save. This is in addition to the default arrangement that before you prepare a budget, deduct a certain amount and stash it into the savings kitty.
Save for the down payment
In addition to excellent credit ratings, clients also look at the amount you provide for a down payment. If your joint credit rating is good, adding a substantial cheque to it in terms of deposits goes a long way to guarantee you a fair rate of interest. The lower interest rate makes the loan to become more affordable such that you can afford monthly instalments without having to struggle financially.
As discussed above, you can cut on costs to better increase the amount of savings, or you can pull efforts and help to organize a more substantial cheque for the benefit of the down payment.
Find the right real estate agent
A real estate agent is the person you want to look for to finalize your plans for getting a new house. If you get the right match, then you are destined to get the best service in a short period. It is discouraging if you get an agent who is late at making follow-ups and presents you offers that do not fit your budget or preference. An agent who can pass a particular portion of their commission to you is right. Some may not even advertise this.
As you join this industry to look for a home, be ready to deal with bad agents. They say experience is an excellent teacher. You cannot know for sure they are bad until you test their services. If you get a whiff of this, then look for ways to drop the agent. By adopting an uncompromising attitude towards real estate agents, you will not be compromising on the home you get. Also, it is critical to compare offers be it a house or a condo. Experts, such as loan advisor can help you get your HBD flat, simply visit their helpful guidelines.
The Bottom Line
It is always a special occasion if you can celebrate the wedding reception from your own home. However, if you take the matter hastily, you might end up not realizing your dream, or having to compromise the quality of your home by getting a low value from all you spent on the project.
Besides saving up and having a good score, you need to solve some underlying challenges that may come in the way of getting your dream house. In a nutshell, to be able to afford a home, you will need to start early preparations for the event. Which means you will have to plan for the two events concurrently. Saving up and improving your credit ratings take a while. This while is all you need for a dream home with your spouse.