First Time Buyers: Honeymoon or Homeownership?

Ah, love is in the air. That greatly anticipated question has been popped and answered, the invitations have been chosen and the wedding party is set! You are now preparing to embark upon a new life together. The happy couple have many important decisions to make during this time. One very pertinent question is should you start your life together buying a honeymoon or in preparation for buying a new home? Lets see, seven romantic days on the white sand beaches of the Grand Cayman Islands or a possible lifetime on tree lined Mayberry Street? Hmm? Many factors will go into making that decision, lets explore a few.

Purchasing a home can be a beneficial investment depending greatly upon your personal situation. If you're one of those couples who still enjoy a somewhat carefree and mobile lifestyle, and you're not sure you are ready for the responsibilities of home ownership right away, then by all means, enjoy your getaway! For those couples who are certain that they will want to buy a home but a are torn between the honeymoon and the home, lets take a look at what you should consider. Buying a home is an investment of money, time, and emotion, therefore, you should be sensible and practical. Like the marriage it should be entered into wisely, if not, the financial strain will hurt your marriage and possibly your credit score.

What’s Priority to Both?
The first thing you must do as a couple is decide what is priority. I realize that lying back on those white sand beaches with a little umbrella drink in your hand for a week is a visual that is hard to shake, but when the honeymoon is over and it is back to the real world, what will your visual be then? Six months later will the sound of loud heavy metal music emanating from your neighbor’s apartment at 2:00 AM cause you great anger and regret for investing in the seven glorious days instead of a home of your own?

Joint Finances/Debt?
Make no mistake, buying a home is a tremendous commitment much like marriage and should not be entered into hastily or taken lightly. You should, together, review your credit, joint income as well as your debts. Maybe you both have credit cards, student loans, car notes that need to be paid off or down. Before you can buy a home, you need to have good credit. Lenders are currently looking for a minimum credit score of 620. You must be sure that you can afford a down payment and monthly mortgage payments. Part of preparing for owning a home is saving money, spending less, and buying only things you can afford. You might want to consider that before you spend an obscene amount of money on that to "die for wedding gown" or that banquet hall that will cost an arm and two legs.

Home Now, Weekend Excursions.
For those couples who really want to start their lives with a new home it will take a solid plan and discipline to carry it out. There is always the option of temporarily postponing that week on the beach, while you work towards the bigger future. Maybe you could take the occasional weekend excursion to a nice bed and breakfast to keep those newlywed fires roaring. Once the dust of homeownership has settled and you’ve made the adjustment to your new financial obligations you could then start a honeymoon savings fund. For more options on how to better plan for home ownership, visit us at MyFirstMichiganHome.com