Buying a home is a significant achievement in life by all means. This achievement comes with a lot of struggle for every couple, whether married or unmarried. Usually, after tying the wedlock, most couples look towards buying a home together. Some experienced realty agents in London, have some crucial suggestion for these newlywed people. It is important for them to sit together and get clarity from each other on credit and finance issues even before they start scanning through home listings.
Estate agents in SE1 suggest to clear out the following points over the given issue:
- Knowing each other’s credit rating and financial history: At the start of any courtship, couples usually discuss topics like music, movies, travel and everything that come in between. But for married folks, it is more important for steer the conversations to finances and credit ratings. There are many newlyweds, who think discussing personal finances with their spouse is a tabboo. If an individual has a very poor credit score as compared to his or her partner, it can spoil their combined effort to secure a mortgage to buy a home. It can also disqualify them from getting a nominal interest on a home loan. Thus, before setting up a meeting with your mortgage lender, make sure you sit down with your spouse and discuss your personal finances in details.
- Where do you want to settle down to: If you’re planning to stay in a property for longer period of time, then a 30-year mortgage with a fixed interest rate is ideal for you. Such a term will enable you paying a consistent interest and monthly payments throughout the term of the loan. On the other hand, if you plan to move shortly for a bigger property, go for an adjustable rate mortgage that offers a lower interest rate than fixed rate mortgage.
- Mortgage income should never be more than 30% of take home earning: As a good thumb rule, never sign for a mortgage expense that takes away more than 30% of your take home earning. Estate agents in Elephant and Castle have a valid argument behind this logic. Suppose, in course of time when you have kids, you decide to quit job to bring them up. Thus, your family income slashes to half. So it is better to be a bit cautious while estimating how bigger a mortgage you need.
- A good rule to follow: Just don’t have mortgage expenses that account for over 30 percent of your take home income. If you are eligible to get a $1 million loan, you should not go out to purchase a home worth $1 million.
While buying a house, joint tenancy is the best home ownership option for married couples. As both the spouses hold equal rights to the property, in case of a spouse’s death the deceased right to the property will automatically be passed on to the surviving one. These tips – if followed properly – can help you make a good bargain while making one of the most significant investments in life.