From Alter To Threshold:
Newlywed Homebuying 101
Article by | Lena Stone Rusch, Century 21
I’ll wager you haven’t heard the scandalous origin story of that romantic, idyllic tradition of the chivalrous groom carrying his radiant bride across the threshold. European folklore says the bride is carried so she doesn’t seem “too eager” to leave her parents home and consummate the marriage. By her groom ushering her into their home this way, she maintained a sense of modesty and propriety. I giggled when I read that, remembering when, like most couples, my husband blissfully carried me over the threshold after our wedding and we thought we were soooo romantic.
The image of a bride suspended in her groom’s loving arms, as they walk into their home for the first time as a married couple, is romantic and fun! You know what’s even more fun [and the real point of this article]? Owning that threshold instead of renting it; building your family’s wealth, right from the start. How do you get to that point? Here are some of the first steps to take as newlyweds headed towards homeownership:
1. Understand the magnitude of the benefits: While it may seem obvious that paying your own mortgage makes more sense than paying someone else’s mortgage by renting, the disparity in wealth between renters and owners is larger than you may think. According to Forbes, on average, the wealth of households that own their home is 1,469% higher than that of households who rent. It’s a no brainer. You’re welcome.
Yes, of course there are a multitude of reasons for the growing wealth of homeowners versus renters, but a simplified explanation is that when you buy a home, you are entering the escalator of the housing market. Since that escalator is always moving upwards, though the speed varies, you are at least on it and moving up with it as your home’s value increases, causing your equity to grow. That equity is realized as profit when you sell your home a few years down the road. If you live in the house for at least 2 years, any capital gains made from the sale of the house is NOT TAXABLE income! You read that right: you can make money on the sale of your house without being taxed on that profit! You can take that profit and apply it to your next house, upgrading to a bigger one, all because you got on the real estate escalator in the first place. Again, it’s a no-brainer. Your first house doesn’t need to be your forever home. It’s simply your first step onto the escalator.
2. Talk to a trusted professional Realtor. I use the word “professional” for a reason. I know your cousin’s neighbor’s brother’s Uncle Jim-Bob just got his real estate license and everyone says he’s the nicest, but find a true professional who knows the market and can use their experience to guide you and advocate for you throughout the process. Ask your friends or family who their go-to agent is that has gone above and beyond for them. The first conversation with your Realtor will entail discussing the process so you’ll understand the steps that lie ahead, deciding on your timeline, and helping you get in contact with a local lender, leading directly into your next step.
3. Connect with a local lender. Your Realtor should have multiple referrals and options for you. An excellent lender will help you evaluate your credit and financial situation. They can help you build a roadmap to get your ducks in a row so you are ready to buy, and can tell you how much house you can afford. They may say you need to pay off a certain credit card, or take care of some lingering issues, or save a certain amount of money. Or they may inform you that you are ready to buy as soon as you’d like. In any event, having clear instruction for getting financially qualified to buy a home is necessary!
These steps will set you on the path moving forward, so you can begin the fun part: looking at houses! Did you think that finding “The One” only referred to your life partner? Think again! Get ready to hear yourself say “it’s not The One” several times before you excitedly exclaim “it’s The One!!!” while on the search for your first home!
Lena Stone Rusch is a REALTOR® with Century 21 Beal and a member of the Fightin’ Texas Aggie Class of ‘06, with extensive experience in the local real estate market, helping buyers, sellers, and investors alike. She’d love to work for you. Find her on Facebook and Instagram.
