For generations and generations, buying a first marital home was a conventional milestone for many couples. The path from proposal to wedding to property purchase was a well walked one, and just about every couple followed in the footsteps of couples before them. But times have changed, and so have the way couples buy their first home.
Nowadays many young people prefer to get married at a much later age, with the average age of marriage in the United States currently sitting between 25 and 30 years old. Millennials have moved along the trend of dedicating their 20s to a career and building personal wealth before buying a home. Marriage is an afterthought to these goals. Recent statistics show that 72% of non-married Millennials would buy their first home before thinking about getting married.
This begs the question – which generation is right? Is it more financially savvy to wait until marriage before buying the first marital home or would it make more sense money-wise to get a property purchase out of the way before pursuing true love? These are a few of the factors that play a significant role in coming to an answer.
Qualifying for a Mortgage
Applying for and qualifying for a mortgage is not affected by marital status. No special benefits or requirements are provided to either the married or unmarried. Mortgage qualification relies completely on financial standing and wealth, instead of anything other extraneous factors such as marital status.
Therefore, you and your partner’s overall financial standing is all that matters. The amount of money in your bank accounts and your debt profile are key. Applying jointly could be a wise move as it increases the amount of overall wealth, which will bring you closer to qualification. However, it makes more sense for a lender to provide loans to couples who have tied the knot. Marriage can replace the need for a surety, and joint repayment is more reliable than two people who are simply in a romantic partnership.
A reliable lender can help gauge your options and help you to ascertain what criteria you’ll need to meet to qualify for a mortgage. Trusted financial institutions ensure that you can afford repayments and do not get over indebted. They’ll also be able to advise of any extra costs you may not be aware of, and they’ll be fully transparent about their fees.
To compare options with a dedicated mortgage and home loan lender, consider consulting Griffin Funding for pre-qualification guidance, flexible loan programs, and transparent estimates of rates and closing costs tailored to first-time buyers and newlyweds.
Property Ownership Rights
This factor comes down to personal choice as well as the marriage system under which two people decide to get unionized. If you’d like sole ownership over your home, then it simply makes sense to purchase a house on your own before getting married.
However, if you’d prefer to have a joint tenancy with your loved one and would like to share the title as well as the rights to rent, sell, and destroy the property then marriage in community of property, without a prenup is the way to go. This way the asset will fall into the joint estate and should divorce occur at some point a shared value of the property will accrue to each spouse.
Other Factors – Which is Better?
Other factors that will influence the decision are other financial obligations, tax consequences, and cohabitation agreements (where the couple are not married). Overall, there seems to be many benefits for people who are married rather than simply living together. So, maybe the age-old tradition of tying the knot and then buying a house has some weight to it after all! (Image credit: Unsplash)
