If you recently got married, our mortgage advisors at Scout Mortgage are here to congratulate you. Finding someone that you love enough to spend the rest of your life with is a truly exciting and momentous event.
For many married couples, the next step they take together is to buy a home. You are most likely fending off the questions of when you will start having kids. The common advice is to invest in a home so that you will not “throw your money away” on rent. However, that’s not always the case. Here are some things you will need to consider before buying a home:
If you and your partner want to explore the world and travel quite a bit over the next few years, now is not the time to buy. We love traveling just as much as you, but we also understand the expenses involved. If you feel that you will regret spending the first few years of your marriage mostly in your new home, it’s best to wait a few years before buying.
If you do want to buy, is the home in an area where you would like to live for at least five years to seven years? If you’ve moved around quite a bit in the past few years, buying may not be a great idea yet. However, if you love the area where you live and you intend to stay long-term, buying might be an excellent choice.
Do you anticipate staying in your current occupation for the next few years? You could be a good candidate for buying. Make sure to buy in an area close to work so that you will not waste valuable time commuting back and forth during the week.
Do you and your spouse have car payments and student loan debt? What about your credit card debt? In order to get the best mortgage rates, you need a credit score of 750 or higher. It’s best to have as little debt as possible because you will only be adding to it when you have a mortgage payment to make.
Depending on the type of loan you take out, you will have to pay a certain percentage as a down payment. If you are eligible for a Federal Housing Administration (FHA) loan, you could make a down payment for as little as 3.5 percent. However, for such a low down payment, you may be required to pay mortgage insurance, which requires an upfront fee and monthly payments.
For the best mortgage loan rates, 20 percent down payments are ideal. Not only will this improve your chances for being approved for a loan, but you will also have a better mortgage interest rate. Immediately upon your home purchase, you’ll also have more equity on your home. You’ll probably have lower monthly payments as well.
Not everyone can afford to put down a 20 percent payment on their first home, and that’s okay. Some people put down five to ten percent down payments on their first homes. For the best advice, it’s important to discuss these aspects with a mortgage specialist.
If you and your spouse are ready to buy a home, contact our Scottsdale mortgage advisors at Scout Mortgage. Our mortgage brokers are happy to help you find the best mortgage rates today so that you can build your future in your home.