As a couple, you will experience a lot of firsts. But perhaps one of the biggest milestones you will have as a couple is purchasing your first home together. This is definitely a big deal since a home is a long-term investment. So, purchasing a home as a couple can signify stability in the relationship.
But even if you’ve had experience purchasing a home before, homebuying can be a different experience when you do it as a couple. After all, this is a big life decision involving another adult. So, to help you out, here are some tips for buying a home as a couple.
Establish Your Non-Negotiables
Buying a home is a big decision, especially considering you will be spending several thousand (if not hundreds of thousands) of dollars on it over a period of ten years or more. So, it is important for couples to be on the same page when it comes to their home buying goals.
What are your long-term aspirations for the home? Will you want to live in the home long-term? Or will you be renting it out to earn income later on? What amenities are most important to you in the home? Do you want a large yard to accommodate your growing family? Or will you be looking to downsize once your children are older?
These are all questions to consider when buying a home as a couple. For example, if your goal is to live in the home long-term, you might want to purchase a home in a good school district. If you want a home to rent out later, you should look at an area with a good job market.
So, once you have a general idea of what type of home you want, you should make a list of your non-negotiables. This means that any home you consider must meet these criteria to the best of your ability. It’s okay if a home is in a slightly less desirable area but still meets your non-negotiables.
Agree on a Budget
The next step for couples to buy a home is to agree on a budget. While having a price in mind is important, it’s equally important to set a budget. A budget will help you determine what homes you can afford while also preventing you from overspending on a home.
First, you should determine how much of a down payment you can spend on a home. The more you spend on a down payment, the less you pay on your mortgage each month. This will help you keep your mortgage payments low while also allowing you to own a larger percentage of the home.
So, if you can, come up with a down payment of twenty per cent at the very least. A down payment of twenty per cent will allow you to avoid paying PMI (Private Mortgage Insurance) on your mortgage.
View Homes Together
Once you and your partner have agreed on a budget and determined the down payment you can afford, you can start looking for homes. In fact, as a couple, you may want to look at homes together. Plus, you will have extra eyes to help you spot any issues with the home.
However, when you do start looking at homes with your partner, it is important to keep an open mind. Do your best to put your emotions aside and be realistic about what you can afford. Otherwise, you may set yourself up for disappointment later on.
Buying a home as a couple is a big deal. And if you are like most couples, you’ve probably been dreaming about owning a home for years. So, here’s to being able to make your dream come true. Good luck and happy house hunting!
Make your first home purchase as a couple with the help of FinanceCorp. We are mortgage professionals in Perth that aim to help you understand your options and simplify the process. All of the Finance Managers at FinanceCorp are fully qualified, trained and experienced mortgage professionals who live and breathe finance. Get in touch with us today!