Getting married is one of the most exciting milestones in your life, but it could also be the most challenging. There is so much to think about and decide upon, other than just choosing whom to say “I do” to. People should realise that marriage is but the beginning of a lot of things, of a life you no longer own alone. So, when you find yourself on the verge of settling down, would you rather take the plunge and see where it lands you or prepare a love nest before jumping?
Some people choose a mortgage before marriage; some choose otherwise. There is no right or wrong way, but like with anything that requires your decision, there are pros and cons. To make sure you are moving forward on the right foot, it would be wise to seek advice from an independent financial advisor mortgage professional. A finance professional could help guide you through the process to make the most suitable decision. Things are not the same for everyone, after all.
Mortgage before marriage
People have become more practical, causing rise to this trend of buying a house before marriage. Is it a good idea? Consider the following:
- Buying a house before marriage could give you a sense of living independently. You will not have to pay rent or risk living with relatives, which could possibly expose your relationship to any form of stress.
- You will build equity sooner when you sign up for a mortgage before you affix your signature to a marriage contract. You see, home prices are likely to increase over time. That could be a good thing for your financial matters, especially if you intend to be with your partner long-term.
- Having a home ready before marriage takes an investment, which could put a financial strain on your relationship. If you do not want to make money issues get in the way of your future happy-ever-after, better not get into such a big leap as a mortgage.
Marriage before mortgage
Unlike the common impression, marital status does not affect one’s ability to qualify for a mortgage. Your application would be assessed the same way, whether it’s a joint or single application. You will be judged individually based on your assets, credits, and income. Once married, you may or may not incorporate your partner into the loan application.
Once you are married, you share mutual responsibilities for prepayment. Since your union has already been sealed legally, you are potentially spending your life with the person you are building assets with. It makes financial sense. Still, you must think carefully, especially since worst-case scenarios like divorce eventually happen to some people.
In the end, making such a life-changing decision takes time. It would be best if you did not hurry and instead study all the options to see what works for you. That’s why it is a great idea to have some professional look into your financial status and help find out what fits you and your partner perfectly, no matter which stage you are in the relationship.