Are you thinking of buying a home before you get married? Many couples feel that it is very important to put their roots down before tying the knot. Buying a home in California before you are married can be a really great idea.
Today we are going to answer some questions that you may have about the process. The information below will be helpful to those who are looking to purchase a home before marriage.
Do I Need Money In Savings?
When buying a home in California it is a wise idea to have some money saved. But how much do you actually need? That all depends on the amount of money you will need for a down payment and closing costs.
Most potential homebuyers will need to put down at least 10% of the total value of the home. So if the house you are buying costs $300,000 you will need to make a down payment of $30,000.
However, there are some government-sponsored programs like the first time home buyers program, that will allow you to put down less. In addition to the down payment, you will also have to pay closing costs.
Closing costs will typically be around 3% to 5% of the total value of the home. Keep in mind that each house is different and the closing cost will vary with each sale. We will talk more about closing costs later.
First time home buyers program, that will allow you to put down less. In addition to the down payment, you will also have to pay closing costs.
Closing costs will typically be around 3% to 5% of the total value of the home. Keep in mind that each house is different and the closing cost will vary with each sale. We will talk more about closing costs later.
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How Important Are Credit Scores?
You might be wondering if your credit scores play a role in buying a home. The answer is a big yes!
All mortgage lenders determine how much you can borrow and how much interest you will pay by using your credit score. If either of your credit scores is low, then it can affect your ability to purchase a new home.
So if your partner has bad credit and you can qualify to purchase the home on your own, you might want to consider leaving them off the mortgage for now.
This will allow you to get a better interest rate which is always important. Remember that having a lower rate will mean that your monthly payments will be lower.
Related: How to Find Down Payment Assistance Programs
Pick A Home You’re Both Happy With
Before you sign your names on the dotted line, make sure that both parties are happy with the purchase. It is a good idea to sit down with your partner and agree on the type of home you are going to buy.
Remember that owning a home is a big responsibility, and you are going to be living there for a long time. So having a home you both enjoy is vital. Also, you should agree on which neighborhood is right for you.
For example, if you are planning to start a family, you might want to be in a neighborhood that is peaceful and has great schools. If you are a couple that loves the nightlife, you might want to choose a home that is close to restaurants and clubs.
Related: The Buying Process – 8 Steps to your dream destination
Do You Really Need A Real Estate Agent?
Sure you can buy a home in the great state of California without the help of a real estate agent, but it is not recommended it. Buying a home in California can be a difficult process, especially if you have never done it before.
Hiring a real estate agent to take some of the burdens off your shoulders and is a good idea. An agent can help you locate the perfect home and help you in the buying process.
Most agents know their area well and can help you get what’s most important to you! When picking an agent make sure to choose one that you are comfortable working with. This will make the process less stressful overall.
What About A Home Inspector?
Before you can buy a home, you will need to have it inspected. This is required by your lender. and the inspection will need to be completed before closing.
During the inspection, your potential new home will be carefully looked over by a professional. He or she will file a report and any damage to the home will be noted. It is a good idea to be there on the day of the inspection.
This will allow you to see first hand what you are getting into. By being there you can determine if the home is right for you. If the home requires a lot of work, you might want to pass on it.
What Should I Know About Closing?
Many new home buyers have no clue what closing costs are. They are often shocked to find that so much has to be done before the home can change hands.
During closing, you will need to pay for several different things related to the purchase of the home. As we have already mentioned you will have to pay for a home inspection. You will also have to pay attorneys fees, filing fees, and more.
Both the buyer and the seller will have their own closing costs. Sometimes if the seller is highly motivated, they will offer to cover the closing costs, but you should not count on this. It is important that you and your partner understand what these fees are so that it does not cause duress around the purchase of the home.
Related: What Does it Cost to Close on a House in California
Moving Costs
Last, but not least, you should consider moving costs. If the home you are buying is far from your old one, you may need to hire a moving company.
Depending on the distance and the amount of items you have will determine your price. Remember to shop around and don’t be afraid to haggle with moving companies.
This will get you the best deal possible. To save some money on moving you can pack up all of your items on your own. Again, you’ll want to make sure you and your partner are on the same page when it comes to moving, and the cost to move so that you can be in agreement on the best way to get it done.
In Conclusion
If you are thinking of buying a home in California with a partner, the information above should help the process.
Remember to sit down with your partner and decide on what type of home you’re both interested in, plan ahead for the overall cost to purchase and move into a new home, and make sure you agree on how the move will proceed.
Make sure to work with a good real estate agent, and continue to communicate through with all parties throughout the process.
📞 Have Questions? Ask The Chris Eckert Real Estate Team
Give The Chris Eckert Real Estate Team a call today at 650.627.3799 to learn more about local areas, discuss selling a house, or tour available homes for sale.
