Jun 17, 2013 | Posted by: abi s

Deciding where you will live is one of the biggest decisions that will be made after the wedding. Many newlyweds will have gotten gifts from family and friends to help with the down payment on their first home. Still other newlyweds may already have been saving for this event. Deciding whether you will look for an apartment rental or purchase a home is a major undertaking. There are pros and cons on each side of the spectrum, we will go over a few of those, so you will have a better idea of what will work best for you.

As a newlywed your decision about home buying will be based not on an attempt to gain financial well but to provide stability, freedom and the ability to grow. A lot of first-time home-buyers, especially young couples do not give much thought to longevity and the changes that occur in a marriage. When looking at houses to buy , it is important that you consider that somewhere in the future your family will increase. If you plan for the long haul by buying a house larger than two people will need with more space, you will not find yourself putting it on the market after the first or second child.

Another major point in the decision of whether to rent or buy a home will be how much home you can actually afford. Generally, the three times your income formula will give you a ballpark estimate of what you can afford to buy. For instance, if your combined in columns is 44,000 the year. You simply multiply that by three and that shows you that you can easily afford to buy a home in the $132,000 market. When buying a home, you will be required to make a down payment, the more you can pay up front, the better. In most cases, if you pay less than 20% upfront, you also incur a PMI. When purchasing a home you also have to consider that you will need homeowners insurance. In the Realty business. This is called the PITI (principal, interest, tax and insurance). Most lenders like to keep house payments to 33% of your total income. And it is not unreasonable to think that you will be able to get a home with a monthly mortgage payment between $700-$1000.

With renting you could easily be spending the same $700-$1000, but renters insurance improved to be a lot cheaper than homeowners insurance. Also, any maintenance required such as fixing drainage leagues and plumbing problems will be handled by a landlord. You lose the ability to make changes in your living environment, but you gain a more hassle free way of wedding life . When it comes to making your house a home, renting can be challenging. Most landlords do not die what you to change anything in their buildings. This includes changing the wall color changing the flooring or hanging pictures on the wall where that would be holes left.

These are just a few of the things that you have to consider when the subject of house at home is broached. Sit down with a financial planner to crunch the numbers to see whether renting or buying is right for you.