February 13, 2017
Valentine's Day is this week, which means that, on average, a couple hundred thousand couples will become engaged and will need to start thinking about buying a home - if they haven’t already. Orion and our brokers know that borrowers understanding each other’s unique financial background is very important. Although not family counselors, our experienced brokers will ask if a borrower and their partner have spoken about upcoming financial plans.
Many brokers will tell borrowers it is essential to have a new budget in place since there are changes that come into play with each party’s finances. Having a budget that addresses a mortgage or a down payment for a home is critical to making investment plans for your future. If you aren’t putting 20% down on your home, ask your broker about mortgage affordability programs and mortgage insurance.
Having a general understanding of your partner’s financial background is critical because many couples embark in joint accounts, which effects your credit scores. All lenders consider both credit scores when purchasing a home, but typically use the lower score as the basis for determining the loan amount and interest rate.
Treat house-hunting and the mortgage process as you would other big life events. Determine a timeline for buying a home like you would a wedding or starting a family. Almost half (40%) of survey respondents, who participated in TD Bank’s Mortgage Service Index, spent more than 6 months looking for a home. Even if you’re not planning to buy right now, it’s never too early to talk to a reputable mortgage broker and start the process.
We at Orion know that borrowers who research the process and feel comfortable with it will make a typically stressful process much easier. Good brokers who work with Orion understand your goals and objectives will be an important part of the search for your future home.