So, you want to get married and buy a home? Congratulations! Few people dare to go buy a House while planning a wedding as they are two of life’s biggest and most expensive milestones simultaneously. Are you crazy for entertaining the idea? Perhaps. But don’t let that stop you. If anyone can pull it off, it’s you, with support from your significant other, of course.
Here’s what to think about as you multitask:
- Do you buy a house before or after the wedding?
- How do you buy a house and plan for a wedding at the same time?
- Can you buy a house if you’re engaged?
- Should you get married and buy a house at the same time?
- How can a couple save for a house?
Do you buy a house before or after the wedding?
Let’s dive into the pros and cons of each scenario to see what would best suit you.
Before the wedding:
One positive side of buying a house before marriage is that you and your partner could start building equity sooner than if you waited until after the wedding.
And the good news is your marital status wouldn’t affect your qualification for a mortgage. When you apply for a mortgage, the lender will evaluate you and your partner’s financial profile separately.
On the flip side, however, if you are making a joint application, the lenders will use the lower of the two credit scores to determine the terms of your loan.
Another disadvantage is that you wouldn’t enjoy the additional tax benefits you would have if you had purchased the house as a married couple.
After the wedding:
From a purely financial point of view, waiting to buy a house after the wedding gives you more time to save for a down payment.
Buying a house as a married couple offers more tax benefits and makes filing easier. Plus, you will have more legal protection as a married person in case of a divorce.
Also, acquiring a home is a long-term financial commitment. So if you buy one with your legal spouse, you’ll feel confident that you’re taking this significant step with someone you expect to spend the rest of your life with.
To summarize, buying a home under any circumstances is overwhelming. It is even more so when you’re planning a wedding on top of it. So whether you decide to buy before or wait till after the wedding, make sure you plan carefully and get expert financial advice.
How do you buy a house and plan for a wedding at the same time?
1. Talk about money and set a budget
Take the time to review your finances and sort out your budget. You should do it early and ensure you are honest with each other. Use a mortgage calculator to determine what you can afford and look at the savings and resources you can access.
2. Know how your expenses will affect your mortgage application
Typically, mortgage lenders will look at income, credit, debt, assets, and employment when considering you for a loan.
It’s, therefore, necessary to keep a close eye on not just your wedding expenses but your general expenses as well. Racking up debt on your credit cards and depleting your savings can make it harder to get a mortgage. So ensure you cover your wedding expenses with cash and donations from friends where possible.
Can you buy a house if you are engaged?
The short answer is yes. But, as mentioned earlier, there’s a lot to consider before buying a house when you’re engaged. Weigh the pros and cons of buying while engaged versus after you’re married, and then make an informed decision.
Should you get married and buy a house at the same time?
Both are stressful and financially-heavy investments, but you can do both simultaneously. As with anything in life, as long as you’re well prepared, getting married and buying a house at the same time will be a relatively simple process.
How can a couple save for a house?
1. Calculate how much you’ll need to save each month
To figure this out, you’ll need to know how much everything will cost. On the buying-a-home side, you can use mortgage calculators to get an idea of how much you might afford on your current income.
To cost the wedding, get price quotes from different wedding service providers. This will give you a rough estimate of how much your wedding will cost you.
2. Create a dedicated savings account
It’s a good idea to have a dedicated savings account separate from your checking account. Establishing one will ensure you don’t dip into your savings for a home, ensuring you stay on track for your saving goals.
5 tips for buying a house while planning a wedding
1. Watch wedding spending
Spending more than you planned on your wedding day can negatively affect your dream of buying a house. It’s important to keep track of your spending and ensure it aligns with your budget.
2. Work with professionals
It’s important to involve professionals to ease some of the stress of buying a house while planning a wedding. They will keep you calm, help you stay on budget and guide you through the entire journey. They can also help resolve any issues if you and your partner disagree.
3. Build in a financial buffer
It’s easy to look at your savings account and dedicate every dollar to your wedding or a new house. But things can easily go over budget.
Setting aside money to be used in an emergency will help you stress less when dealing with unexpected expenses.
4. Set up automated savings
Automated savings are great for tricking yourself into saving money. Funds automatically deposited to your savings account can add up over time and be of immense help when purchasing a home or planning a wedding.
5. Cut costs
There are so many creative ways you could cut costs. To save on rent, you could move in with your partner or go further away from towns where apartments are cheaper.
Another way is to assume you only make half your income and save the rest. Or if you are living together, live on one income and save the other, etc. The options are endless.
In conclusion, while this undertaking is difficult, there’s no reason it cannot be done. It becomes easy with a lot of dedication and help from friends, family and professionals.
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