In today’s world more couples than ever before are buying homes before they get married since many people want to already own a home when they are married instead of renting and buying later.
Although buying a home together before marriage is fairly common you can avoid any pitfalls with this decision by following these simple tips.
Tip 1 – Hire a Real Estate Attorney
Most couples don’t want to think about hiring an attorney before they are married but its common sense to make sure both individuals best interests are protected if the couple decides not to marry, one individual passes away, or the marriage fails.
Tip 2 – Sign These Documents
A Real Estate attorney may have you sign a Cohabitation Agreement so each individual is aware of their financial responsibilities to the house including mortgage payment, homeowners insurance, Real estate taxes and down payment.
You may also be asked to sign a Property Agreement which will detail all physical property that’s accumulated with your spouse or partner during the marriage should both parties decide to leave the property or get a divorce.
Tip 3 – Apply For A Mortgage Loan
One of the great things about buying a home in 2014 is low mortgage interest rates. You may qualify for a traditional mortgage loan together or apply for a HUD, FHA or an FHA 203K loan.
The FHA 203K is one of the best home loans available today, especially for first time home buyers because it also enables home buyers to finance construction costs for homes which may not be habitable when they purchase them.
For more tips on buying a home before marriage or to view homes for sale across Orange County contact Fred Sed & Associates today by calling us at (949) 272-0125.