Part of planning a wedding includes deciding on where you’ll live and maybe start a family. If you think planning a wedding is stressful, try buying a house at the same time. These are two major decisions that can easily be competing goals for couples who are just starting a life together. The first step to achieving this dream is for couples to prioritize their spending and savings. And, with some smart financial planning and commitment, starting your married life in a new place of your own is entirely possible. Here’s what to know as you multitask:
1. Be Realistic About Timing
Buying a house while planning your wedding both require a huge financial commitment. Set a realistic timeline for your house purchase and wedding date. Other than finances, there are a few things you have to keep in mind. For instance, house hunting may take longer depending on the local market, the time of the year, and even closing time. You also have to factor in additional months of savings to cater for any emergency expenses that may come up along the way.
2. Do Your Homework
Before you start getting excited looking at listings, you first need to find a home within your means, check out the neighborhood, check property taxes, and determine if it satisfies your long-term goals. Then, get in touch with lenders to find a loan that satisfies your needs. For your wedding, begin venue search, compare vendors, and come up with ideas for a budget-friendly wedding.
3. Set a Budget
Although couples would love to go all out for their wedding and house purchase, it’s important to be realistic about what they can afford when setting a budget for both. They can get in touch with a mortgage broker to find out what joint mortgage applications they can fit in, including the down payment, interest rates, closing costs, and also, use a mortgage calculator tool to find out how much they can borrow. If family members and friends are helping out with the wedding, be clear and communicate to them the amount of money you will need.
4. Don’t Mix Your Funds
Most couples spend more than they had planned to on weddings, which can have consequences on their home purchase. That’s why setting up two different savings accounts, for the house and the wedding, that automatically draw from each of the couple’s checking accounts can help them keep a diving wall. It also prevents dipping into funds meant for one activity to pay for the other. If friends and family offer financial help for either of the two, ensure you have a good sense of the amount and any conditions related to the gift.
5. Coordinate Your Registering and Home-buying Efforts
Register accordingly once you have an idea regarding the amount of space you can afford. Skip the large or unnecessary appliances if you expect a home with few closets and a tiny kitchen. But, if you expect to purchase a larger house, then you should register for decorative items that can help spruce up space. Couples can also create their own wedding website to aid in the coordination of the wedding activities.
Just because purchasing a home while planning a wedding is challenging doesn’t mean it’s impossible. Hopefully, these few tips will help both of your dreams come true.