Having a partner you trust enough to buy a single family home with is the dream for many people. When you think you might be there, the excitement of potentially owning real estate can be overwhelming. But for practical purposes, you also must ensure that you are ready to buy real estate as a couple. How do you know for sure? Here are some tests to run your situation through.
You Know Where the Payments Will Come From
When you're ready to contact a real estate agent, you have thoroughly evaluated your financial situation as a couple. You are confident that you have enough income to make payments on the home that you both want. You know who the down payment is coming from, and where the monthly mortgage payments will come from; you're comfortable with how much money will be coming from each person to buy the home. In short, you know that you have the resources to pool for your home buying adventure.
You Know Where Payments Will Come From When Primary Sources Fail
When it's time to buy a home, you already know that things can go wrong. One of you may lose a job, or a natural disaster may cost you a fortune. You have worked out the contingency plan and know that the costs of owning the home will be more than just the mortgage. You have enough savings to cover unwanted surprises without going bankrupt. A home is just one piece of your financial strategy as a couple, and you're more than equipped to deal with setbacks.
You Both Want to Live in This Location for the Next 5-10 Years, Minimum
You've realized that, once you invest in a home, it will be a while before you can get your investment back out. That is because mortgage loans are front loaded with interest payments. Five years is a minimum for living in your new home, and at least ten years would make it more of a solid choice. So, are you ready to be in your current city for the next 5-10 years?
Once you have addressed some of these serious questions, it's time to start looking at the fun ones. You have lots of great conversations coming up with your partner about areas to live in, home styles, budgets, and the amenities you need. Let your real estate agent put the final touches on your decision to buy a home by showing you some of the excellent single family homes for sale in your area.