Buying a House Before or After Marriage: The Benefits of Buying a Home as a Married Couple

As a mortgage company, we understand that major life decisions like buying a house and getting married often go hand in hand. Determining the right time for these milestones is crucial for couples.

Buying a house before marriage or after the wedding each has advantages and considerations, and it’s essential to weigh the factors before deciding.

By assessing your priorities as a couple, evaluating market conditions, and understanding the long-term implications, you can make an informed decision that aligns with your unique circumstances and aspirations. 

Remember, there is no one-size-fits-all answer. Ultimately, the right time will feel correct for you both as you embark on this exciting journey of love and homeownership.

Financial preparedness

One of the primary considerations when deciding between buying a house before or after the wedding is your financial situation.

Consider your budget, combined debt and credit, and post-wedding finances. A mortgage lender will need to consider your financial readiness when they’re deciding on loan approval. 

Budget

Evaluate your financial resources and determine if you have enough savings for a down payment, closing costs, and ongoing mortgage payments. 

If you’re buying a house before marriage, analyze how purchasing a house may impact your ability to fund a wedding and other important expenses. 

Use an affordability calculator and input your monthly expenses, including the amount you want to save each month for your wedding. This will estimate how much you can comfortably afford to spend on a home. 

Down payment

Assess your ability to save for a down payment. Depending on the loan program, you may need anywhere from 3% to 20% of the purchase price. 

Evaluate whether you have sufficient funds saved or if waiting until after the wedding allows for more substantial savings. 

Putting more money down on your home will immediately give you more equity as a new couple and is worth considering if you’ve already had a wedding. 

Debt-to-income ratio

Mortgage lenders evaluate your debt-to-income ratio, which compares your monthly debts to your income. 

Consider both of your current and future debt obligations as a couple, including student loans, car payments, and credit card debt. Ensure your debt load is manageable before taking on a mortgage.

Credit score

Your credit score plays a significant role in mortgage approval and interest rates. 

Evaluate both of your credit histories and take steps to improve them if needed. A higher credit score can lead to more favorable loan terms and interest rates, not to mention improving your chance for loan approval. 

Post-wedding Finances

Anticipate the financial responsibilities that arise after the wedding, such as honeymoon costs, relocation expenses, and potential changes in income. 

Ensure you clearly understand how buying a house fits into your overall financial plans.

Stability and long-term planning

Purchasing a house and getting married both involve long-term commitments. Mortgage lenders assess your income stability and long-term plans to determine your loan eligibility. 

The following are items the lender will look at, as well as overall discussions you should have as a couple. 

Commitment

Evaluate the strength and stability of your relationship. Ask each other what your homeownership expectations and goals are. Purchasing a house is a significant commitment, both individually and as a couple, and it requires careful consideration. 

Buying a house before the wedding may be a viable option if you feel confident in your partnership.

Employment stability

Lenders consider your employment history and stability when accessing your loan application. Requirements will vary by lender but some require borrowers to have at least two years of employment at the same place. 

If you or your partner are expecting career changes or relocations, it may be wise to wait until after the wedding to ensure a stable financial foundation.

Long-term goals 

Reflect on your aspirations as a couple. Do you envision expanding your family shortly after getting married? Are there career advancements or potential relocations on the horizon? Do you want to live close to family members?

Understanding your long-term goals will help you decide if homeownership should come before or after the wedding.

Market conditions and interest rates

Couples considering homeownership should also research the current market conditions of their preferred location and the national interest rates. 

Real estate market 

Research the housing market in your desired location. Evaluate trends, inventory levels, and affordability. 

Determine whether the current market favors buyers or sellers, as it can impact your purchasing power and options. This can give you insight into whether you should buy a house before or after the wedding. 

Interest rates

Keep an eye on interest rate trends. Lower interest rates can increase your purchasing power and reduce monthly mortgage payments. 

Your interest rate will depend on your overall financial situation, however, if national interest rates are high then it may be worth waiting for them to lower before applying for a loan. 

Financial benefits and tax considerations 

Consider the following financial benefits of buying a home as a married couple. 

Equity and appreciation

Owning a home allows you to build equity and potentially benefit from appreciation over time. If you buy a home before the wedding, you have more time to build equity and benefit from a cash-out refinance or home sale down the road.

Tax advantages

Homeownership offers potential tax benefits, such as deductions for mortgage interest and property taxes. Owning a home as a married couple also comes with its own tax benefits such as a higher amount of capital gain that can be excluded from your income reporting. 

Consult with a tax professional to understand how these benefits apply to your specific situation.

Marriage and buying a home—at the same time

Planning a wedding and buying a house can both be stressful endeavors—to say the least. Going through both of those milestones at the same time can cost you time, money, and sanity. 

Time and energy 

Evaluate the time and energy you can allocate to each process. Determine if managing both simultaneously is feasible. Both events could end up costing you unnecessarily if you’re not paying enough attention. 

Support system 

Assess your support system, including family, friends, and professionals such as real estate agents and wedding planners. 

Utilize their expertise and assistance to alleviate the stress associated with both endeavors.

Reach out to Homefinity for all your mortgage questions and needs

Purchasing a home can be a complex and overwhelming process, and the added task of planning a wedding can further intensify the situation. 

Regardless of your decision to buy a home before or after the wedding, it’s crucial to approach the purchase with careful planning and seek expert financial advice when necessary. 

The Homefinity team is there to guide you every step of the homebuying process and ensure that you’re comfortable closing on your home.

Get started on the homebuying process with Homefinity today.