Buying a as a couple for the first time is a milestone – even for people who’ve owned a home in the past. If you’re thinking of buying a new construction home in the Denver area, it’s even more important to communicate since you’ll have to make important design decisions. Whether married or not, get pre-approved for a mortgage to figure out your budget. According to a recent article by foxbusiness.com, before embarking on the house hunt, have the money talk. Buying a home is the largest purchase most couples will make together in a lifetime. Custom homes in Denver typically fall into the high-end luxury home market. Finding out that a future or current spouse has a bankruptcy in the recent past could dramatically change what you can afford in a home together.
Having an honest conversation
Before going on a house hunt for a custom home in Denver, start with an honest conversation about personal finances. Experts suggest full disclosure about your credit score and credit card debt since that will affect your debt-to-income ratio when applying for a mortgage. Also, discuss any cash available for a down payment as that will also affect whether you can afford certain custom home features or amenities including swimming pools and outdoor kitchens.
Agreeing on a budget
Another area were couples sometimes disagree is how much they want to spend on a home. It’s not always about how much money you have in savings, but how much of it you are willing to use as a down payment. Also, not everyone wants to buy a $1 million dollar home just because they qualify for a jumbo mortgage. An experienced Denver Realtor who specializes in luxury properties will help you estimate or find out about associated costs such as home owner’s association fees, average utilities and any hidden costs.
New couples can also discuss how much each person will contribute to the mortgage payment. Most financial experts recommend paying equal percentages of one’s salary as opposed to equal amounts. In other words, the person who earns more ends up contributing more but the same percentage as the person who earns less money. Also, if you are buying a home without being married, consider legal issues.
For more information about luxury homes in Denver, including exciting foothills neighborhoods including Hiwan, Genesee, Lookout Mountain and Riva Chase, please contact me.