Are You Purchasing Your First Home as a Couple?
August 9th, 2009 | by Nutria |
You have decided to purchase your first home – together. This is a very exciting time, but it is not without pitfalls. Communication is the key. What do you need from your home? What do you want in your new home? How much can you afford to pay? Are you going to use a realtor? Where do you want the new house to be located? Where can you find furnishings for your new place? These are all important questions you should discuss prior to looking for a new home.
Wants vs. needs
The decision is made that a new home is to be bought, but what features are wants and which ones are needs? How many bathrooms do you need? Are you planning to stay in the house for 30 years or only 5 years? Will you need room for your family to grow? Will your new house have a pool? How about a hot tub? Do you need a large yard or a small yard? The number of bedrooms and bathrooms is an important consideration.
Obviously, the number of bedrooms and bathrooms greatly influence the amount the final price will be, but if you will be enlarging your family, make sure you buy as much house as you can afford. As you tour the various houses, it is important to also envision your furniture or your prospective furniture to ensure there is plenty of space. Make sure you talk about closet space, furniture placement, color for the walls, and future renovations. Dream together and paint the picture of your future. Remember, this can be more fun that exasperating.
Will you be able to afford a house with a pool or hot tub? Do you need outdoor furniture? A pool/hot tub is usually considered a want and may need to be forfeited to obtain the number of bedrooms and/or bathrooms you desire. Make sure you have discussed this in advance to ensure you are in agreement.
Can We Afford a New House?
Before you start looking for a new house, you may need to be pre-approved for a loan. The financial institution you have decided to use can help you determine how much house you can afford to buy. Try to remain well below the upper amount of the range given to ensure you are able to afford to also furnish your new home and do any upgrades you would like to do in the future.
Is a realtor important?
You may want to consider using a realtor especially for your first house purchase. A realtor is priceless for finding a house in a good location and for negotiating all the paperwork for a purchase. (Of course, it helps to have a lawyer to have around for the closing). Realtors know the areas that they sell. They are usually versed on which schools are good and where various entertainment venues are.
Closing
Closing is the best and worst part of buying a house. You will likely wish to have a lawyer available to look over all the paperwork before you sign anything. Make sure you have a clean title and all the necessary papers are in order. You will be signing until you think your wrists will break. When all the signing is done, you will be handed your keys for your new house. Congratulations as you have survived the process of buying a new home. Now the fun begins.
Home at last
Once you have gotten your new key, you will need to move in. During the moving process, take time to reflect on your dreams for the future. Don’t forget to have a house warming party once you have settled in and invite all your friends to your lovely new home.
Need some help paying for that new home or what goes in it? Take a look at www.MyDreamHomeRegistry.com, the gift registry for everything home.
Watch the video related to home
Switchfoot This Is Home from the album This Is Home (C) 2008 SONY MUSIC ENTERTAINMENT
Help answer the question about home
Can I take out a home loan for land and a manufactured loan?
By home loan I mean a home loan and not a personal property loan like on a trailer home/manufactured home in a trailer court. I qualified for a home loan and I want to keep it cheap, so I want to purchase a piece of land and a manufactured home. Wil this work as a home loan if its on private land?
Wow, there is quite the array of scams out there! Why would anyone take out a loan from the internet without talking to someone face to face?
About Author
Articles are sponsored by My Dream Home Registry and its community All Things Interior (www.allthingsinterior.com). We have a host of resources available for individuals looking for home design and remodel information.
18 Responses to “Are You Purchasing Your First Home as a Couple?”
By Anonymous on Aug 9, 2009 | Reply
There are times when you are meant to hear something…i’m happy that this time I heard what I needed to hear by listening to this song =)
By Home Improvement on Aug 9, 2009 | Reply
nice song!
By Leigh on Aug 9, 2009 | Reply
Yes, he should want a written and witnessed agreement. Financially you would rather not. If the home is in your name only, it is all yours and whatever he gave he gave. If he thinks he has some equity then the agreement should be in writing.
Think it out. If you were to break up, would he have equity in the home? Would he have any obligation to pay the ongoing mortgage? What if the home has lost money, would he pay you his share of loss? Perhaps the most practical agreement would be that you would pay him back the portion of the down that he paid adjusted by the grown in value of the home, and you view the mortgage sharing as rent.
On a related note, if you are entering into a financial transaction as complicated as buying a home, and you are NOT expecting to break-up during the life of the mortgage, why not marry and become one economic unit?
By umilta a on Aug 9, 2009 | Reply
By Home Improvement on Aug 9, 2009 | Reply
i got chillz they need to come to spokane!!!!!!!!!!!
By Peter on Aug 9, 2009 | Reply
Yup. The IRS says as long as the total doesn't exceed the 10% of the selling price/$8000, you can assign the credit to either one of you. If/When the house is sold prematurely, the person whose SSN claimed the credit would the one to pay it back.
By Dread on Aug 10, 2009 | Reply
By Home Improvement on Aug 10, 2009 | Reply
It’s songs like this that keep me sane.
By Home Improvement on Aug 10, 2009 | Reply
Sweet song
By Kate on Aug 10, 2009 | Reply
I have worked with many people who want a maintenance free, WORRY free, stress free vacation property in Florida to enjoy now and retire to later.
Most of them rent the property during high season (mainly January through Easter) to help cover their own costs – and then enjoy it themselves when it is not rented.
Others rent it during the off-season (for less) so they can enjoy it during the winter months. It's up to you.
But, to do this, the property must be turnkey furnished (down to the spoons in the drawer and the linens on the bed). The good news is that many properties are sold this way, and are investment and renter-ready from the start.
I would figure out:
1. Your preferred location in Florida.
2. Your budget to spend.
3. Have a local realtor help you with real estate tax, insurance, association fees and local rental rates, so you can factor that in.
4. Talk to your accountant about how much you can write off on your taxes, if you rent it (and that will depend on how often you rent it, and/or how often you and friends and family members use it).
5. Sleep on it. Pray on it. Go for it.
Feel free to use my search engine at http://www.searchforvenice.com to check out ANY properties listed in South Florida – it's free and does not require registration.
And, email me if I can answer any other questions for you.
By Home Improvement on Aug 11, 2009 | Reply
same here dude.
By Home Improvement on Aug 12, 2009 | Reply
Just replying to my own comment saying I <3 Switchfoot!
By thefallguy80 on Aug 12, 2009 | Reply
If you purchase in 2009 you can claim the $8,000 credit on your 2008 return as long as you close on the purchase before you claim the credit.
The IRS rushed out a new version of Form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf that includes the $8k 2009 credit for 2008 returns. This is a major change to normal policy.
By Leanne H on Aug 12, 2009 | Reply
Once you do decide who is to pay what, have an attorney who handles contract and real estate law draw up a contract that stipulates how things will go given different scenarios. I work for an attorney and have seen this type of thing done before. But bear in mind property laws can differ from state to state.
By Home Improvement on Aug 12, 2009 | Reply
this song is so awesome, even better live!!! September 6th, 2009!!! it was awesome love jon foremans writing, SWITCHFOOR BABY!!!!
By Crazydays on Aug 12, 2009 | Reply
ofcourse, before deciding to rent over buying , think about this always: 'There is no equity in Rent.' This means, that you can rent a house or apt for a 100 years at the end of it all , it will never be yours.
By Home Improvement on Aug 12, 2009 | Reply
Amazing Song I Love It 5/5 Hey Im Seariously Not Trying To Spam But If U Want Look At My Vids They Are All Gaming Vids. But Back To Switchfoot Just Plain Amazing.
By Giggles on Aug 12, 2009 | Reply
No, it isn't, and let me tell you what I see in my career as a Realtor and on Yahoo Answers…alot.
You have a couple that moves in together, buys a house, they are both on title and the mortgage…then they break up and one of two things happens.
1) Both of them want the house…and if that happens, both of them have to sue the other in court to get the judge to make a decision.
2) Neither one of them wants the house so ONE usually will move out on the other…leaving the "resident" stuck with paying the ENTIRE mortgage unless they want to ruin their credit…and guess what? They CAN'T SELL IT or refinance it without the signature of the other owner…so what happens if you can't agree on selling price???
On situation #2…it gets worse…a judge CANNOT order one unmarried person to pay the bills of another or contribute to a joint debt…but they CAN if you are legally married…that is the legal protection you get if married that you don't get if you are just living together.
It's just a bad idea. Just remember that no one ever buys a house together thinking they are ever going to break up.