Financing in Tennessee>Question Details

Jodi, Home Buyer in Tennessee

My fiance and I are looking into buying our first home, My question is should we wait to actually buy a home when we become married next year?

Asked by Jodi, Tennessee Fri Jul 30, 2010

Would we receive a better rate if we waited until then or could we go ahead and buy?

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122
Jodi:

I suggest that you get pre-approved and start looking, with the idea of being educated and also be ready to buy when you see something that fit your needs. Perfect house don't come often, being ready to buy will be very helpful.

And, yes, the rate is historically low (since 1971), when that house comes along, go ahead and buy it, don't wait.

Sylvia Barry
Marin Realtor
http://www.SylviaBarryRE.com
2 votes Thank Flag Link Sun Aug 15, 2010
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
Contact
If you do decide to buy before you get married, go to a lawyer for some advice. There are a whole bunch of issues involved: What if you don't get married? How do you take title? Who's putting up the down payment? What if you sell in a few years; will the person who put up the down payment be resentful if the proceeds go to the two of you equally?

Understand: I'm not arguing in favor of, or against, buying pre-marriage. I'm just saying that there are a lot of additional complications if you do buy now, but that those complications can be minimized or avoided if they're thought through and addressed now.

Hope that helps.
2 votes Thank Flag Link Fri Jul 30, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
First of all congratulations! Pros is that interest rates are very low and its hard to fault putting your hard earned money into a great home sooner than later. The con is that weddings take a lot of planning, can be expensive and its possible that you'll have enough on your plate for the next number of months leading up to a wedding. Additionally, depending on your financial situation, it may be better to wait until after the wedding. You may also receive money during the wedding that can be applied towards the new home or furnishings.

I believe as most experts will agree that this market is far from recovering to the point that great deals will not be available any time soon. I suspect interest rates will remain low and purchasing a home not too far in the future will be a great option if you decide to wait. Best of luck :) Ben
1 vote Thank Flag Link Mon Sep 13, 2010
The rate isn't based on if you are married but your creditworthiness, deposit, primary residence, and other financial factors,.. Popular opinion is that rates won't go much lower and incrases are anticipated. So I am a fan of locking in a fixed rate as soon as possible. But if some how you didn't go through with your wedding would you both have an exit strategy other thsn taking a loss because you had to sell immediately. Could either of you manage it on your own or with a roomate or similar type situation. Actually this is not bad to know even after you go through with the wedding. Hate to say it but its realistic.
1 vote Thank Flag Link Fri Sep 10, 2010
Hi Jodi,

There are some really great real estate opportunities right now, but there may also be great opportunities next year. It really depends on your relationship , the market, and your finances.

Buying real estate is a serious commitment and in this market it is mostly a very long term investment. I have been married 36 years but be before we were finally married we had separated, canceled, and rescheduled our marriage 3 times. My dad said "Don't do it if you are not committed 110%." I took his advice and she has mostly forgiven me for that. You may want to have a written agreement covering what will happen in the event the marriage doesn't take place and there is a separation for any extended period of time. It would be a good to seek the advice of an attorney and protect yourselves. Blessings and best wishes!
1 vote Thank Flag Link Fri Sep 10, 2010
my suggestion, wait until after you get married... this will help you avoid some potential issues in case you change your plans between now and the big day.

All my best,

Dan Gonen
1 vote Thank Flag Link Sun Sep 5, 2010
I suggest that you meet with a local lender to sit down and discuss your options. It would be a good idea to have the lender check your credit, just in case there are any issues that need attention in order to be in the best possible position to purchase a home. The interest rates are extremely favorable right now, so that would be a benefit to purchasing now. There is no guarantee that the rates will remain at these low rates if you wait until next year. It is a good idea to work with a Realtor who will act as your "buyer's agent" to guide you through the process. There is no additional cost involved for you, and provides you with a professional to act on your behalf. As a relocation specialist, I would be happy to provide you with a Realtor in your area.
I wish you the very best in your future!!
1 vote Thank Flag Link Sat Sep 4, 2010
It depends on your market, your relationship and your finances. There are great real estate opportunities now, and there may be great opportunities then also, depending on how your local market is trending and where interest rates go.
Buying real estate is a serious commitment and it's unlikely you can "flip" property easily in this market if something goes wrong. You may want to have a written agreement between you and your intended, outlining what will happen if for some reason the marriage doesn't take place (sorry, I'm sure it will and that you'll be very happy!). Whenever you sign a contract relating to something as valuable as a home, you want to cover all the bases legally. My advice is to seek the advice of an attorney and then shop! Good luck and best wishes!
1 vote Thank Flag Link Thu Aug 26, 2010
First of all, congratulations on your upcoming wedding!

With regards to your question. Unfortunately, one of the things that agents cannot offer in our long list of services is predicting the future. As others have said, rates are at historic lows. Will they be lower next year or the same or higher? No one can know for sure.

You have to ask yourself if the risk of waiting until next year to see what the rates will be outweigh the potential delta in rates if they continue to decline or if they increase. It is really tough to catch the exact bottom of any financial market. At some point you just have to go with your instinct.

Are you ready to buy now? Are you prepared financially and mentally and have enough time available? Planning a wedding can be time consuming, expensive, and stressful and so can buying a house and moving. Something to keep in mind.

Whatever you decide I wish you good luck!
1 vote Thank Flag Link Mon Aug 23, 2010
Hi Jodi,
Wait another year to buy. Good Luck
1 vote Thank Flag Link Mon Aug 23, 2010
NOT A QUESTION THAT SOMEONE OTHER THAN YOU AND YOUR FUTURE SPOUSE CAN ANSWER! THE TIMING HAS GOT TO BE RIGHT FOR YOU, AND NOONE OTHER THAN YOU. WHAT DO YOU THINK A SALESPERSON OR BANKER/BROKER WILL TELL YOU? OF COURSE..."NOW!" WHO IS SUPPOSED TO LOKK OUT FOR #1? YOU! REAL ESTATE IS AS MUCH ABOUT "TIME IN" AS IT IS TIMING. HOPE THAT HELPS, JOE FASONE
1 vote Thank Flag Link Wed Aug 4, 2010
I'm pretty sure the rate would be the same as it is based on your credit and income, etc. Marital status should not be a factor, but, I would double check with your lender just to be sure. Since interest rates are at historic lows now and with so many great deals available, it's a great time to buy. Just make sure you take title of the house in both your names.
1 vote Thank Flag Link Wed Aug 4, 2010
Congratulations! The interest rates are GREAT! and there are a lot a of homes to choose from, making more choices available for you. I would buy now because if you wait and the interesr rates go up by next year, your buying power goes down. I would contact a reliable mortgage lender to get pre qualified. He will explain to you, based on your credit and income the difference a percent will make to you. (a bigger house for less money) if you buy now. GOOD LUCK!
0 votes Thank Flag Link Sun Sep 19, 2010
Congratulations on your wedding! Buying your first home together is a great way to start off your marriage. If you are able to buy now while prices are down and rates are low, there is no reason to wait. Your credit scores and combined income will help determine the loan rates you receive. If you can find an affordable home in the area you want to live in, there is no real reason to wait. Ask a Realtor in your area for help and take your time to find the right home for you. Good luck in your search!
0 votes Thank Flag Link Sat Sep 18, 2010
Hi Jodi,

Congrats on your upcoming marriage. No one on here can 100% predict what will happen next year. IF you can find the home you want now, you may want to consider buying now. Why? Because interest rates are sub 5%...and that does not happen. We don't know what external factors will influence rates next year. We also don't know how prices will go.

Home values could go north or south and everyone has an opinion. Since we cannot see into the future, we as real estate professionals can only advise clients based on what we see today. But find a reputable and patient REALTOR in your area to assist and advise you.
0 votes Thank Flag Link Sat Sep 18, 2010
Hmmm...it's a double-edged sword. Interest rates are at an all-time low, many eager sellers are willing to make a deal, and the abundance of foreclosures offers the possibility of more for your money if you play your cards right. But on the other side, a combined income and credit history could help you receive better financing (possibly), volatile market indicators indicate a questionable financial future, and most of all...marriage changes everything. The engagement, wedding, and first year of marriage involves a lot of adjusting, and it might be a more practical solution to wait until that stressful time has passed. Suggestion: Take the first step and find a real estate agent that you feel comfortable with, start working with them to find information on the area you are planning to buy in, and start discussing financing options. You'll know when the time is right for you, so don't rush.
0 votes Thank Flag Link Fri Sep 17, 2010
Congratulations!!!! I love to see a couple that is getting married plan ahead. Now is a very good time to buy your first home, Here in California there is a loan called Calpha which gives first time buyers the chance to purchase with a 1% down and a FICO score of 620 they will also help with closing costs I don't know if Tennessee offers it but it wouldn't harm to check. I agree wit my other collegues that the interest is at a very low rate that could go up if you wait until next year it might go up along with prices. I also agree that you should draw up an agreement with your fiancee just in case you don't tie the knott.
0 votes Thank Flag Link Thu Sep 16, 2010
Jodi:
Congratulations on your upcoming marriage! What an exciting time for you. If you are ready and able to purchase now, do so! The interest rates are at a all time low and are expected to slowly rise. In addition, the home values are still lower. This means more house for your dollar and less interest over the course of your loan. What a fantastic combination! Good luck...
Web Reference: http://www.amymoreno.com
0 votes Thank Flag Link Thu Sep 16, 2010
Dear Jodi: Planning is essential. Now is the best time to buy a house. Your interest paid on a mortgage loan and property taxes are deductible when filing a tax return. On the other hand what would be wiser? i would advise you to consult a lawyer and draw up an agreement to: If you purchase a home in both names prior to marriage, who will end up with the house. Based on Real Estate Experiences, I have seen couples disolve, the Boyfriend or girlfriend walked away. Try to sell that house? Got to get a POA from a Judge or look for the second party on the deed. unless you have enough income to support your payments on your mortgage note yourself. In most states, if your credit score is acceptable and you meet the minimum required; your interest rate offered by your mortgage banker should be unilateral. Shop around for a good rate. and plan a prenuptial.
0 votes Thank Flag Link Thu Sep 16, 2010
you would only receve a better rate because of your combined income, you don't have to be married to buy a home togethe, itr would be discrimination if being married was a criteria , interest rates are at there lowest in over 40 years and coupled with lower values of homes it is the ideal time to buy right now! don't wait you have the best buying power right now
0 votes Thank Flag Link Wed Sep 15, 2010
Go for it Now.. Interest Rates are rocking low... I never seen these lower Rates in Estate Business.
0 votes Thank Flag Link Wed Sep 15, 2010
I wouldn't wait. Interest rates have never been lower and they could go up. Plus there is a amazing selection of well priced properties to choose from. An attorney can advise you on how to take title as unmarried persons, it's done all the time. You should talk to a lender in your area a.s.a.p. They will help you determine your realsitic budget (you may be able to afford more or less than you think) & point out any credit issues, etc. that you need to work on. Good luck and have fun, this is a very exciting time for you.
0 votes Thank Flag Link Wed Sep 15, 2010
Hi Jodi,

I see no reason to wait. There are several ways to hold title as an unmarried couple and your attorney can help you choose the best way to protect both of your interests. I'm an agent, not a lender, but both of your credit scores and financial information will be considered whether you are married or not. Many couples, friends, or family members buy real estate together. This is such a good time to buy while the rates are low and so many properties are on the market at great prices. Don't wait!
Web Reference: http://www.ShelterToday.com
0 votes Thank Flag Link Wed Sep 15, 2010
The answer about the lending rate hinges on some questions you need to get answered by a qualified lender. I have a couple of excellant lenders I work with who would be happy to cousel you regarding your loan. As to whether you should wait until after your married to buy or not......from personal experience I would definately wait.
0 votes Thank Flag Link Wed Sep 15, 2010
I think this is going to depend on your credit, regardless of you being married. That is if it is going to be in both of your names. Usually they will take the lower score anyway, so just make sure you have your credit straightened out and then go from there, but keep in mind intereste rates are really good, who know what will happen next year. Good luck.
0 votes Thank Flag Link Wed Sep 15, 2010
I have helped several couples in your exact situation, seems the rates are so low, and the wedding sometimes a bit on the horizon. Take advantage of this market while buyers have more options.
Getting the loan, whether married or not, should not be ipacted by marital status.
0 votes Thank Flag Link Wed Sep 15, 2010
What is best for you, the rates are great,prices are great and alot of inventory.
What does your heart tell you to do....that is what you should do.
0 votes Thank Flag Link Wed Sep 15, 2010
The rate depends upon credit score not marital status
0 votes Thank Flag Link Wed Sep 15, 2010
Choose your REALTOR and ask her/him for a lender recommendation. It seems that financing issues may be part of your question. Talk with that lender to see how your credit looks together and separately. You could buy now or after you are married, so just be sure you are confident that you are getting married. It is still a good idea to have a written document outlining what would happen to the house i you did not get married.
0 votes Thank Flag Link Tue Sep 14, 2010
No, it may take you a long time to find what your looking for. start looking now. You may learn something about each other that you didn't know. Good luck!
0 votes Thank Flag Link Tue Sep 14, 2010
married or unmarried there is no benefit either way - interest rates are low and housing sales are in a slump. This is a rare mix of ideal buying conditions. If you see something you like buy it.
0 votes Thank Flag Link Tue Sep 14, 2010
I don't see rates getting any lower, only going up. It all depends on your financial situation. How much have you saved down? What is your credit score and do you have any opportunities to clear up any needed items on your credit history.
0 votes Thank Flag Link Tue Sep 14, 2010
Guys, This quesioned was originally asked and answered back in July!
0 votes Thank Flag Link Tue Sep 14, 2010
You definitely should not wait. Rates are so low currently and no one can predict what they shall be next year.
0 votes Thank Flag Link Tue Sep 14, 2010
At the present - our rates have never been this historically low. If you wait until next year - you may not get the opportunity to take advantage of these rates. I wouldn't wait until next year - buy your house!
0 votes Thank Flag Link Mon Sep 13, 2010
Hi Jodi-

I see no reason to intentionally wait to purchase as interest rates are at an all-time low and housing values have fallen significantly. You seem to be in a good position as you are not in a hurry to buy, so why not start looking for something that you and your realtor feel is a good deal? From a financial perspective, it doesn't benefit you to wait unless you need to save up more money. Of course, if it's an issue of commitment, that's a whole different story.

Good luck!
0 votes Thank Flag Link Mon Sep 13, 2010
You will probably never see interest rates this low again. Go on and buy!!
0 votes Thank Flag Link Mon Sep 13, 2010
Interest rates are at an all-time low right now so there is no point in waiting, and there are great buying opportunities available. You can buy as individuals now and then change the way you hold title after you are legally married.

Of course, your personal financial situation really governs the decision. Do you have money in reserve? Are you both feeling secure in your work environments? Have you looked at the cost benefit from buying and getting a tax deduction instead of renting? Have you met with or talked to a Real Estate Professional about your expectations for home ownership? All the best to you!.
Web Reference: http://www.greghagan.com
0 votes Thank Flag Link Sat Sep 11, 2010
Hello,
It is currently a great time to buy,I have been in real estate since 1993 and there have never been lower rates or better deals on homes than now.
The main question is have you gotten pre qualified,know your financing options for your area and comfortable with all that entails being a homeowner?
Best of luck to you,buying your home is a wonderful step in your life for you and your family
Paul
0 votes Thank Flag Link Fri Sep 10, 2010
The rates are fantastic right now and so are prices. I would suggest that you buy now if you are able. Also, if you are in a rural area- check out the USDA rural housing loan that offers 100% financing.
0 votes Thank Flag Link Thu Sep 9, 2010
Hi Jodi,
It does not matter if you are married or not. Your credit scores matter! If you see a house you want to buy and you are qualified by a lender, go ahead and buy it! Interest rates are at a 50-year low...We know what it is today, but we don't know what it will be in a year...same thing with prices of home....they are about half of what they were 5-6 years ago...if they go up in a year, you might regret waiting until then to buy!
Right now, it's a WIN-WIN! Go for it, and congratulations on your pending marriage!
If you are looking in the Pasco/Pinellas area, call me at 727-967-9444 and I can help if you don't have an agent. We also have an inhouse lender to get you pre-qualified.
Anna Georgiadis, PA, GRi
REALTOR since 1987
RE/MAX New Dimensions
annageo@tampabay.rr.com
0 votes Thank Flag Link Thu Sep 9, 2010
Thank you for your question Jodi. Although we don't know what the housing market will do in terms of rising and falling prices between now and next year, we do know that the interest rates are at an all time low. What we can be sure of is that the rates will most likely increase. I would say you should consider purchasing now.
0 votes Thank Flag Link Thu Sep 9, 2010
Dear Jodi,
If you both have secure jobs, there is no reason not to go ahead and find the home of your dreams now. The interest rates are beyond low right now. I just saw an approval letter for 3.75%!! Waiting until its official may end up costing you money if the rates go up. My husband and I bought our first home 6 months before we were actually married and it allowed us to save more money for our dream honeymoon. It was better to make one house payment versus two lease payments. Ultimately the choice is yours. do what feels right to you.

If you decide your ready, speak to a few lenders and see who you like. I would choose someone local over some of the on-line lenders. Local people are more likely to be there for you when you need them, and some even go to the closing with you in case there are questions. Once you have the approval then interview a few local Realtors and choose one that you like and feel communicates well with you.
Betina
0 votes Thank Flag Link Wed Sep 8, 2010
Hi Jodi,
There are some really good answers here and lots to think about. I've taught home buying classes at our community college for years and helped hundreds of first time buyers and have one thing to say. If you decide to buy, you need to think about what happens (god forbid) if you don't end up getting married. Not to be a downer, but if something happens and you don't get married, having a house together is very challenging. Best of luck and congratulations on your wedding & home buying plans!
0 votes Thank Flag Link Tue Sep 7, 2010
You would be taking a risk waiting. I'm sure home prices will still be down, but interest rates are another matter altogether.
0 votes Thank Flag Link Tue Sep 7, 2010
Hi Jodi,
With historically low interest rates it might be a good idea. The first thing you need to do though is connect with a very good local expert. Interview several and base your selection of agents on someone willing to spend time to ensure your questions are answered and knowledge of local area as well as how well you think you'll get along. In most cases the answer to your question is buy it now, but local conditions might be different.

good luck!

Chris
0 votes Thank Flag Link Mon Sep 6, 2010
Jodi,

I thought you might be interested in my latest blog posting where I answered the question I hear so frequently when I'm talking with Buyer clients, "Do you think I should Buy now or wait for prices to drop in the next 6-12 months?" Until I sat down and started doing some research and actually crunching some numbers it was a question I found it hard to answer this question objectively.

When I finally found the time to analyze the data, even I was a little surprised at what the numbers showed. I've supplied a link directly to my posting and what the numbers showed; I think you'll find it interesting.

Your marital status isn't likely to effect the mortgage rate you receive. That's based on your income to debt ratio, credit scores, and your assets (i.e. cash you can bring to the table). I am not familiar with Tennessee property and inheritance law, this would be something to ask a local real estate attorney in your area, but if you buy prior to getting married you'll want to get the deed modified to reflect you married status once you are. In our area the attorney you used when you buy a home, would typically do this for around $100.

Congratulations on your upcoming wedding, and best of luck to you and your fiance in finding a great home.
0 votes Thank Flag Link Mon Sep 6, 2010
Jodi, This is the time to BUY. With rates dropping for the 9th time and it being a Buyers Market due to the current Economy. Buy now. The mortgage rates will start to rise within the year. The price of homes may go up depending where you are living. Think about the life of the Loan. To be able to get a Mortgage as low as 4.375%, you'd be crazy to wait. This is not meant to push you. Only to Educate you. Good Luck in whatever you decide to do and congratulations on your upcoming wedding. Liz
0 votes Thank Flag Link Mon Sep 6, 2010
Well, you are probably in your new home by now so whether you decided to move forward or stay put, consider these options:

Pro's: Buying now will allow you a 30 year fixed interest rate between 4.25 and 5.25% (I can't give you a direct rate because I don't know the type of program that would best fit your profile and therefore I can't quote you an APR - which is required by law to give when quoting rates).

If using FHA to buy a house, the mortgage insurance premium is getting ready to increase $35 per $100,000 borrowed, very soon. This will result in an increase in your monthly mortgage payment. Their is another cost for FHA loans called Up Front Mortgage Insurance Premium which is financed into your loan. This amount will decrease from 2.25% to 1%. This means although your mortgage insurance payment will increase, your mortgage insurance premium will decrease.

FHA is looking into decreasing the amount of money the seller can pay towards your closing costs. These seller paid contributions are currently sitting at 6% of the sales price. It's expected that the maximum seller paid contribution will drop to 3%.

Currently, loans can be obtained with a 620 score (although 580 is still accepted, it's becoming harder to find a bank who will lend at that low score). HUD is considering increasing the minimum requirement to 660.

Housing prices are really low right now. Who knows what the November election will bring. Perhaps a recovery of sorts and prices will go back up again. You'll kick yourself for not buying that house for $20,000 back then...

...and maybe rates will go back to 6-8% where they were years ago. Who knows?

Cons: You can't decide who is going to fill the dishwasher and who will empty the dishwasher.

Who will clean the bathroom and who will take out the garbage every week?

Will you really use the couch downstairs for punishment or will you talk it out and sleep in the same room regardless of the outcome of the discussion?

In Conclusion: Don't base your decision on a rate. Base your decision on the location of where you want to live, who you want to live with and how long you want to live there. Oh and paint the walls using the colors that SHE wants to use.
0 votes Thank Flag Link Sun Sep 5, 2010
I would recommend talking to a reputable lender. If you are a member of a credit union, they can be an excellent source of information. From a market perspective, it is unlikely that rates will go much lower, but I believed that to be true when rates were at 5.5% 2 years ago. Rates are exceptionally low right now for highly qualified buyers. Find out what kind of rate you would qualify for by getting prequalified for a home loan and go from there.
Best Wishes and Congratulatioms,
Jen
Web Reference: http://www.jenbutel.com
0 votes Thank Flag Link Sat Sep 4, 2010
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