How To Plan Your Finances As A Newly Wed Couple When Buying Home In Idaho

Buying your first home as a newlywed can be both exciting and scary, but at Idaho Title Loans, Inc. we can show you how it’s done. A little bit of financial planning goes a long way when buying real estate in Idaho, so you’ve come to the right place if you need guidance.

This article will give you a step-by-step process for how to plan for your first home together financially. Keep reading to discover how to combine your finances and learn how much you can afford, among other essential tips, when buying your home!

5 Steps To Plan For Your First Home As Newlyweds

Buying your first home together as a newly married couple can be overwhelming, but there’s nothing to worry about. 

Follow these five steps to cut through the stress and financially plan for your first home together:

Step 1: Review Your Shared Finances

The first thing you must do as a couple before you look at your first possible home is to review your shared finances.

As newlyweds, you’re likely still getting used to combining your finances. So, this step might take some time, effort, and patience.

The goal here is to have an honest and accurate account of your finances in terms of:

• Your total income as a couple.
• Your total expenses.
• Each partner’s total debt.
• All financial commitments, such as bills for your recent wedding.

Reviewing your finances and accounting for all of the above will help determine how much disposable income you have and, by extension, how much you can pay for your first home.

Step 2: Know What You Can Afford

Once you’ve reviewed your shared finances, the next step is determining how much you can afford on a new home.

Remember: the typical down payment is 20% of the home’s cost in cash, so that will be one of the savings goals you’ll work towards.

As for the mortgage to pay the house’s remaining costs, a safe rule of thumb is to take a mortgage that is up to 28% of your gross income.

Real estate in Idaho offers options for many different budgets. So, sticking to that limit should mean you’ll have plenty of money left over for your regular expenses like bills, groceries, and more.

Step 3: Identify All Costs

Don’t let the excitement of shopping for your first home distract you from smaller but equally important details.

One detail that many first-time homebuyers overlook is that the down payment isn’t the only cost they must worry about.

There are other costs to save up for as well, like:

• Fees and taxes when making a home purchase.
• Moving costs to bring your furniture and other items to your new home.
• Other unexpected costs along the way.

A great way to identify these costs is to speak to friends and family who have undergone the same process. 

Better yet, speak to the real estate agent or realtor you’re dealing with so they can give you a clear picture of those costs.

Step 4: Start Saving Up

Once you’re at this step, you should already know all the crucial details: your shared income, what you can afford to pay for a house, and all the costs involved with that transaction.

Now, it’s time to focus on working towards your savings targets. Here are a few tactics to help that happen as quickly as possible:

• Earn more - take on extra work, including additional hours, side hustles, or gig work.
• Spend less - cut back on your spending so you can save more. Remember that this is only necessary until you reach your goals; it’s not forever!
• Automate - use automation to your advantage so money is put aside for your goals every time you get paid.
• Look for help - depending on where you live, you might have access to home-buying assistance programs. Look for them to see if you qualify.

Step 5: Protect Your Savings

As you continue saving, you must also have a plan to protect that money from financial hurdles that occur along the way.

For example, a financial emergency might force you to use the money you’ve saved to buy a home.

You can protect those savings by borrowing money to cover your emergency costs instead. 

In this situation, a finance option like a title loan might be helpful. It gives you access to as much as $15,000 using your lien-free car title as collateral.

More importantly, you could get the money quickly by just providing your driver’s license and title and bringing your car in for a brief inspection.

Understanding these possibilities and preparing for them in advance can help you stay on track toward buying your first home as a married couple! But you should know that the amount you qualify for will be determined by the value of your vehicle.

Get Started Now!

Buying your first home is a significant milestone for any newly married couple. Doing so involves a substantial financial commitment that requires careful financial planning. Use the steps above to build your plan, but remember that Idaho Title Loans, Inc. is here to help in emergencies.

When you need cash urgently, take the first step by submitting your information through the short online request form anytime! Once your information is received, a loan representative will call you to guide you through the loan process.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.