Young couples more interested in homeownership
By Academy Mortgage Corp.
Couples who plan to get married may be more interested in applying for a U.S. home mortgage and purchasing a new home together.
Many couples would use a large pre-wedding money gift toward a home. According to a survey conducted by Trulia, an online real estate company, 69.5% of respondents noted they would use a gift of money toward the purchase of a new home. Women (73%) are more likely to spend gifted money on real estate than men (61%).
Most participants indicated a home would be the preferred purchase. Only 11.9% would use the money toward a new car, 10.4% would invest in their honeymoon, 6.1% would spend a gift on their wedding and only 2.1% of participants would put it toward a larger engagement ring.
Young buyers want larger homes. Many individuals interested in purchasing a new house also want homes with more bedrooms. The ideal number of bedrooms for 51.6% of respondents is three, while 26.5% of couples want a four-bedroom home.
When it comes to purchasing the perfect home, many couples are willing to make sacrifices. About 26.9% would eliminate excess spending on eating out at restaurants and ordering food to be delivered, while 23.9% of respondents would invest in a smaller wedding.
Young buyers care about their neighborhood. Among the surveyed couples, most individuals want to live in an area with a good school system. Additional factors that are important to young buyers include the commute time to work and the square footage of the home.
Couples should plan ahead of time. Because a home is such a substantial investment, many pairs who decide to buy a home before getting hitched should consider signing a prenuptial agreement. Forbes noted the laws regarding a married couple are clear, while an unmarried duo might be entering murky waters.
"Married couples have a large body of law to protect their rights if their union dissolves. With unmarried partners, the law is less clear," noted Patrick Horning, an advanced planning director.
If couples decide to purchase before marriage, Forbes recommended getting a prenup for the home because it will likely be the largest asset the two individuals invest in.
"When unmarried couples enter into a financial contract such as a home purchase, both credit scores are impacted by the success of that joint purchase," stated Horning.
Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2014 CoreLogic Marketrac Report. Visit www.academymortgage.com to find a loan, get a rate, or calculate your payment today.