You’re recently married. Congratulations! If you’re like many newlyweds, the next thing on your agenda is probably buying a house—and, in order to do that, you may need a mortgage.
But, as a newly-married couple, what do you need to know about successfully getting a mortgage?
A recent article from realtor.com outlined key mortgage tips and insights newlyweds should keep in mind as they search for their dream home, including:
- Review your finances. Before you jump into the home search process, it’s important to understand where both you and your partner stand financially. Sit down and discuss your credit scores and outstanding debt, as both will play a major role in your ability to secure a mortgage.
- You don’t necessarily have to put both names on the mortgage. If you have excellent credit and little debt, but your partner is in a less ideal financial position (or vice versa), you might want to consider only having one half of your partnership apply for a mortgage; that way, one person’s credit score or debt won’t negatively impact your loan terms (for example, higher interest rates). And don’t worry; as long as both names are on the title, you both own the house—regardless of whether both spouses are on the mortgage.
- If an interest rate seems too good to be true, it probably is. As newlyweds, you and your partner want to get the most competitive interest rate possible for your mortgage. But if a mortgage rate seems too low to be true, it probably is. For example, there are lenders out there that will offer a super-low interest rate—but also super harsh penalties for late payments, which could put you in a financial bind if you’re ever late with your mortgage payment. If you get offered a loan with a so-low-it’s-hard-to-believe interest rate, it could be a red flag—so make sure you fully understand the terms and conditions before moving forward.