Congratulations, you’ve tied the knot and now you’re settling down with the love of your life! Your first year as a newlywed couple is full of different milestones, including your first place together as a married couple. So, should you buy or rent your first home?
This is a big decision and part of a larger conversation you need to have with your spouse. Turn off your TV and phones, sit down, get comfortable and talk about the answers to these five questions to decide if it’s best to buy or rent according to Realtor.com.
What do our lives look like in 5 years?
Are you up for a big promotion or waiting to get transferred to a new office? Do you plan to go to school or change careers? If you’re planning on making some big changes, stay flexible and avoid getting tied-down to a home. Having to sell a home quickly can be a stressful situation and can land you in the red if the market isn’t ideal.
Is my credit in good shape?
Get down and dirty about your credit score with your partner. Did you miss a car or student loan payment? Do you obsess about paying all of your bills early? Fess up either way. Get a free annual credit report and see who has the best score. Talk to a mortgage advisor today to see who should be the one with their name on the loan.
Can we afford to buy?
Feel free to use some of your wedding gift money as a down payment but remember to set some cash aside as an emergency fund for home repairs and monthly maintenance. Renting and mortgage payments may be comparable, but when a tree falls on your roof or your pipes start leaking, the cost of owning goes up and up. Thankfully, your mortgage payment isn’t subject to surprise rent hikes.
How is the housing market in our area?
Do you want to live in an up-and-coming area that is likely to see greater home appreciation within the next 5-10 years? Do real estate prices in the area run in cycles? Do some research on Zillow or Trulia to find up-to-date information about the housing market in your neighborhood.
Which one is best for our lifestyle?
You probably already know the answers to this question if you and your partner are on the same page. Are you willing to get your hands dirty in a DIY project or would you rather hire a professional? Owning a home means a lot of maintenance is coming your way so make sure you’re willing to keep up with repairs or have a solid savings account to cover the costs.
Have you two come to a decision? Great! Get the process started today by comparing your options with vLoan’s free rate quote tool. Determine if your available options are affordable and in a comfortable range. Talk to a dedicated mortgage advisor today to help you choose the best mortgage option for you. vLoan is on your side and we hope your journey toward homeownership is as successful and as smooth as possible.
Follow us on Facebook or Twitter to keep up to date with our monthly campaign #HappilyEverHomes. We will be sharing mortgage advice and new to help educate newlyweds about the home buying and refinance process.