Love is in the air for some young couples but they should think twice in buying a house before marriage. A survey conducted by Coldwell Banker Real Estate shows that "Approximately 1 in 4 married millennials (24% of U.S. adults ages 18-34) purchased their first home together with their current spouse before they were married, compared to those age 45+ (14%)."
As more and more financial challenges looms over the horizon, young couples seeks to minimize their financial responsibilities and according to time.com, "Low-rate mortgages, rising rental costs, and the ability to deduct mortgage interest from income taxes all make being a homeowner now rather than later seem like an attractive option."
Not all young couples will have the similar experience as Seattle couple Katy Klein and Charles Hagman, as time.com previously reported. It might have worked out for them but it might not work for all, as the same report said, "That many financial planners advise against it. That's because buying a home is often the biggest and most financially complicated move a couple makes, and unwinding it can be especially difficult for unmarried partners if the relationship ends."
However, if young couples would still want to purse in buying their home before marriage, some factors needs to be in place, and according to time.com, "It is better to spare yourselves from financial heartbreak by following certain steps."
Preparing from a financial heartbreak is not a bad thing. Implementing certain measures can help any young couples such as both should be comparing credit scores, since according to a report by time.com, "A person's credit score will impact your ability to obtain a mortgage and the interest rate you will pay," says Pewaukee, Wisc.-based financial adviser Kevin Reardon.
Other options to opt for are to open up a joint account, deciding on how to manage the cost, as Financial planner Alan Moore, co-founder of the XY Planning Network, recommends choosing a home with a mortgage you can swing on one income, as reported by time.com.
Young couples can also choose to put the agreement into writing and titling the property accordingly. "When you hold title as joint tenants with right of survivorship, you are considered equal owners, and if one of you were to die, the other would automatically inherit the other's stake and own the entire property," as suggested by time.com
Being prepared for the future as young couples is not a bad choice, however implementing certain measures will help the young couples in handling their financial obligations just in case their relationship won't last as they thought it would.