Buying a Home: Dating vs Married
More couples from the millennial generation are finding themselves under mortgage, before marriage. Almost 25% of married couples between the ages of 18 and 34 bought a house before their marriage. Compare that percentage with the prior generation and those 45 years and older only found themselves under mortgage before marriage at a percentage of 14%.
One of the reasons so many couples are deciding to buy before marriage is the buyer friendly market. One couple said before getting married they started seeing the prices drop and realized that they many never see such a buyer-friendly market for first time homeowners again. So the couple ended up buying their home while engaged and got married a year later. They ended up saying, “Why wait when we’re going to need a home in a year anyways.”
Couple find it difficult to resist low prices, and low mortgage rates. Elaine Matthews in an interview said, “There are just so many things you can lose out on” if you wait too long. Elaine with her boyfriend of just 16-months have decided to buy a brand new 1,200 ft. duplex. They’re reasoning for purchasing the house is “we will eventually get engaged and get married.”
Are people doing things backwards these days? Well there are some serious benefits to buying a home after your married.
Looks Good for Lenders
There is a big difference in the eyes of a home lender when meeting a couple who is married, and a couple who is dating. When you’re married your committed to one another for life, which means if you buy a house you’re more likely to actually afford a home because the two of you will be paying if off.
But if you’re dating in the eyes of a lender you have no commitment of actually staying together, which means you’re less likely to pay off the loan. Saying “I Do” before buying a home can be a big motivating factor for a lender to sign off on your mortgage. So think about those wedding bells a little more.
When an unmarried couple goes into purchasing a home both credit scores are affected. If your relationship goes sour after the home purchase your ex-boyfriend/girlfriend’s credit is now attached to yours because the two of you purchased this home. Even if you go through the legal channels to remove your ex from the mortgage, you still in for major challenges, and potentially years of headaches. Plus if one of you defaults on a future loan it will hurt the other’s credit score. In short if you break up after purchasing a home, you’ll find yourself in a very vulnerable position.
Dividing Up The Home
Breakups are hard to do, and purchasing a home makes breaking up even more complicated. When your heart is broken, and you’re not thinking straight people start making irrational decisions. Trying to divide up the home, the furniture, the mortgage requires a sound mind. Being mentally and emotionally unstable is the last position you want to be in when negotiating life changing investments.
Think twice, and thing again
Everyone wants their relationships to last forever, but if you don’t think your relationship is committed for at least the length of your 30 year mortgage, you might want to rethink purchasing a home. There is a reason why couples for generations have found themselves married prior to being homeowners. There is way less risk in renting an apartment together prior to marriage, then making a life-long, life-altering, commitment like purchasing a home. So break the trend and get married first, buy a home second, and third, sleep better at night.