toy house in a ring box

Did you know: it’s becoming more common to purchase the ideal home before planning the perfect wedding? If you’ve found yourself in this scenario, having a place to move into might be comforting for your future partner—but there could also be unforeseen financial complications. When preparing to take the matrimonial leap, consider refinancing your mortgage as a way to protect yourself, your spouse and the home you’re about to share.

Coming Together as One

Now that you’re likely merging bank accounts and tax filings, be sure to review your budgets and financial histories carefully. This is an important step in transparency that could help you make big purchases together, such as a car, quicker and easier in the future. It could also lead to greater savings on your mortgage by refinancing.

Refinancing is an option that many newly married couples explore, especially to protect one another financially. Marrying after securing a reverse mortgage, for example, could potentially leave the non-borrowing spouse less protected. Refinancing with both parties as borrowers could be a better financial option for the couple. 

Regardless of the type of mortgage you’re seeking, if you’re in a committed relationship and you both work, you have an advantage over single buyers in a lender’s eyes: a dual income. Those two paychecks, in addition to having strong credit scores and high debt-to-income ratios, could help you secure a lower interest rate on a refinanced loan than the mortgage you have now. 

If your credit scores are poor, however, it could hurt your chances of securing a better loan. In these cases, married individuals could always refinance without having their spouses listed as a borrower. Some states may still require non-borrowing spouses to sign all documentation. 

Final Thoughts

With interest rates falling drastically, buying before marriage could be a very positive move. Whether you decide to tie the knot before or after purchasing that home, we at Open Mortgage are always here to discuss your financing options. Visiting OpenMortgage.com today is a great way to learn about our services and to start talking with home-financing professionals.

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