Buying Your First Home as a Couple: What You Need to Know!
Are you thinking of buying your first home as a couple? If yes, then this may be one of your big milestones in life! It can be overly exciting, but it can also come with lots of unexpected stress and hurdles. These may include arguments, heated conversations, or any other conflicts that can occur because of disagreements, differences in interests, and even pride. Hence, you need to be ready to compromise and anticipate the worst that could happen (ie. losing your job, a change in your priorities, or financial situation).
To help you ease your house hunting (as a couple), we listed down some of the steps you can do to run things as smoothly as possible:
Set a Budget and Get Pre-Approved for a Loan
This is the first step you need to take before looking for your first home. How much have you saved so far? What is your target budget? Besides this, you also need to consider the amount of money you can borrow from the bank. What are the conditions? Are you qualified to get a loan?
Additionally, you need to be conservative and realistic with your answers. Ensure that the budget you will come up with is enough for you to still enjoy the same lifestyle you have but without putting too much mortgage pressure on your shoulders and on your relationship as a couple. Your budget should also allow you to be a stronger candidate in getting pre-approved for a home loan that fits your expectations.
Consider also the hidden costs that go along with the purchase of a home, such as the processing fees, insurance, etc. If you want, you can always seek professional advice from a financial advisor to make sure your budget is as comprehensive and accurate as possible.
List Down Your ‘Wants’ and Have an Agreement with Each Other
Now that you have your budget, the fun part of your house hunting begins – to visualize and list down the things you want to have in your first home together and agree on what exactly you are looking for.
You may consider the following when doing this process:
the area or suburb that you find yourselves happy to be in
distance from your work
the number of rooms (bedroom, bathroom, etc.)
the condition of the house you want (renovated or original)
the size of the house
Once finished, it is now time for both of you to write down all your “must-haves” and “nice-to-haves,” and create a list of any potential deal breakers. For instance, the house's location should not be too far from the bus stop or market.
Next, be ready to compare your lists and compromise. Figure out which are mandatory and what may need to be sacrificed from each of your respective wishlists. However, if you still find it hard to choose which should be prioritized, you can ask for a buyer agent’s help to act as your mediator and give you a list of key features that should be included in a house. It would also be better to visit the house of your dreams to determine what it really is that you are looking for.
Be Emotionally Prepared During Your House Hunting
As mentioned earlier, house hunting can also be stressful and tedious. You will have a lot of competitors and you may even have a hard time finding the right house, so make sure that you are emotionally prepared and that you have a precise plan that you can stick to.
Set up alerts on real estate websites and apps using filters that meet your criteria. By doing this, you will be able to save time and energy in narrowing down your options and, at the same time, it will help you focus on looking for a house that has most, if not all, of your “must-haves.” Nevertheless, remember to strictly pay attention to your deal breakers no matter how attractive the house might seem.
When you inspect a prospective house, do not forget to take down the pros and cons that you find in it. Make comparisons between all the houses that you inspect and be more objective rather than focusing on your preferred house only.
Secure Your Dream Home by Making the Right Offer
Finally, your dream home is almost at your fingertips. The next step is to make the right offer by determining first whether you will be buying by private treaty sale or at an auction. If the former, it is crucial that you assess the market value of the property and how much you are willing to offer. Depending on the competition and your budget, you might want to try to seal the deal and make your best offer right away so that there will be less risk of losing your dream home to another buyer.
On the other hand, if you decide to buy at auction, you will have to set an absolute limit and stick to your budget. Another trick is to make sure you review your wishlist as well as every detail of the house first before the auction, so you can remain calm and neutral on the day itself. Also, prepare a bidding strategy for yourself because sitting and letting other buyers dictate the auction is no strategy at all. Lastly, prepare your finances and ensure that they are in order, especially the deposit, as soon as you win the bidding battle.
