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5 Mortgage and Homebuying Tips for Newlyweds

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For many newlyweds, buying a home makes their union feel even more official. After all, finding the perfect space to grow old together may seem like the most romantic thing a new couple can do.

Yet much like wedding planning, the homebuying process can sometimes test even the most solid couples. Indeed, when you combine the pressure of a new lifetime commitment with first-time homebuying jitters in a hot real estate market, you have a recipe for a potential housezilla meltdown.

But we’re here to tell you saying “I do” to a home can be as smooth as your first dance, if you know the right moves to make.

We tapped a team of experts for intelligence on what newlyweds need to know about making a financially sound mortgage commitment and choosing the right home for their happily ever after.

Tip No. 1: Check out your credit

Some first-time homebuyers don’t have much of a credit track record. Lack of a solid credit history can make lenders question whether you’ll be able to make your monthly mortgage payments. (Lenders consider a credit score of 740 ideal, while a score of 620 is the baseline for securing a decent loan with a reasonable interest rate.)

“Before you even apply for a loan, you need to check your credit report and score—and see where you stand,” says Michael Simons, a real estate broker and the owner of Tres Amigos Realty Group. “You also need to look at your debt-to-income ratio. Finally, sit down with your spouse and discuss your finances to see if one of you has bad credit or a lot of debt, as these factors could cause your loan to be turned down.”

Tip No. 2: You don’t have to put both names on the mortgage

If your credit is good, but your partner’s score is in the red, you have options.

“It’s possible to name the mortgage loan after just one spouse,” says Collen Clark, a lawyer and the founder of Schmidt & Clark, LLP in Dallas. “And that’s highly recommended if one partner’s credit score is low, because it excludes one party’s debilitating credit ratings from being considered during the mortgage calculations, ensuring a more affordable and friendly payment scheme.”

However, keep in mind that ownership is determined by whose name is on the title deed. So make sure both spouses’ names appear on the title, if only one name appears on the mortgage.

“At the end of the day, married couples must learn to disassociate the property’s ownership from the mortgage,” adds Clark. “Being the sole borrower of a mortgage loan does not equate to ownership.”

Tip No. 3: Determine how much house you need

While it might seem impossible to map out the next 30 years of your married life before buying a house, it’s a good idea to talk about the future in broad strokes.

“When buying a new home, there are a few basic things to consider,” says Rachel DiSalvo, broker associate at Keller Williams Park Views in Rutherford, NJ. “Most importantly, determine if this will be your primary residence. Then, determine if it will be a starter home or a forever home.”

Couples should also think about whether they picture children in their future or whether they foresee moving an elderly relative into their home at some point.

Once you determine the size of the home you’ll need, and drill down on a price range, you can work on your financing choices.

“A great mortgage product for a newly married couple that has never purchased a home in the past is an FHA mortgage, which is federally backed and requires just 3.5% down,” adds DiSalvo. “That could come in handy after paying for a wedding!”

Newlyweds should also keep a realistic budget in mind, beyond the home price. Remember that a home purchase comes with property taxes, homeowner insurance, and the home’s upkeep.

Tip No. 4: Beware of too low-interest rates

Did you get a fantastic offer from a lender? It could be a red flag.

“Newlyweds should be on the lookout for unbelievably low interest rates,” says Scott Rubzin, founder of Tiffany Property Investments LLC in Charlotte, NC.

Low interest rates might make an offer seem like a great deal, but there are sketchy loans out there. For instance, if you miss a payment, the late fees can be severe, and the deadlines for payments can tighten. These loans aren’t upfront about how tough the penalties are, so couples can end up losing their homes after a few missed payments.

Tip No. 5: Consider a house hack

Do you have the money to offer a sizable down payment?

“House hacking has become popular among first-time house buyers on a budget,” says Kris Lippi, a licensed real estate broker in Hartford, CT. “Instead of getting a single-family home right off the bat, why not get a duplex first, so you can rent out the other half and lessen the load of the mortgage payment? You can also portion off a section of a family home and rent out extra space there, too.”

For more tips, visit Realtor.com

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7 Things Professional Movers Want You to Know About Moving in 2022

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Whether you’re moving across town or across the globe, the process may not look like it did when you’ve moved in years past.

The pandemic has significantly affected almost every area of life, and moving is no exception. I talked to some professional movers to find out what you need to know and do to have a successful and trouble-free move this year.

Expect Delays — and Consider a Plan B

According to a recent survey by moving site moveBuddha, moving companies are struggling to keep up with the high demand for their services. “In 2021, 71 percent of moving companies reported experiencing delays,” says Ryan Carrigan, one of moveBuddha’s cofounders. He believes that 2022 won’t be any better. “People moving long distances should expect delivery delays and plan accordingly,” he adds.

Carrigan says moving companies are experiencing staffing shortages and schedules are filling up quickly. “The truck driver shortage has been a significant issue for the trucking industry, especially moving companies — and in 2021, the lack of drivers, paired with a spike in demand for long-distance moving services, led to a 250 percent increase in last-minute cancellations by moving companies and a 71 percent increase in delivery delays.”

He recommends booking a mover as soon as possible, and also having backup options in case of a cancellation. “I’d also recommend having a plan for if your delivery gets delayed so you aren’t stuck in an empty house for longer than you want to be.”

Hybrid Moving Is Going Mainstream

As a result of the pandemic-related labor challenges and disruptions to the supply chain, Mike Glanz, president of HireAHelper, believes that 2022 will be the year that hybrid moving finally goes mainstream. Hybrid moving is part DIY and part full-service. “Instead of being entirely ‘hands-off’ and fully surrendering their belongings to a full-service moving company, more and more people are hiring hourly movers to simply load and unload a rental truck or a moving container for them,” Glanz says.

By self-managing the transport and letting hired laborers do the heavy lifting, Glanz says you can save a significant amount. “A full-service move normally costing $2,600 could be done for $800 using the hybrid approach — and it gives people greater control and access to their belongings, providing invaluable peace of mind.”

Time Is Money and Money Is Time

If you’re paying movers by the hour, Cameron Brown, owner of Austin, Texas-based Einstein Moving Company, says you should move as much small stuff yourself as you can. “If you have time in between when you can move into your new place and when you have to vacate your old place, bringing over some of the random stuff that goes into your garage, [taking] stuff that is packed into your cabinets and drawers, and hanging pictures on your own before can reduce the stress of the move and save you a ton of time/money on move day,” Brown says. Believe it or not, he explains it’s not the big stuff that takes all of the time. “It is the small miscellaneous stuff that adds a bunch of trips back and forth to the truck that causes moves to go long,” Brown adds.

Make Sure You’re Prepared for Movers

Collin Flynn, owner of UniMovers, says that one of the biggest complaints he hears from movers is that the customer wasn’t prepared when they arrived. “We do provide packing services, however people often opt to save money by packing their boxes themselves.” 

Still, if everything is not boxed up when the movers arrive, it can disrupt the process. “What many people don’t know is that movers have a system when packing and loading a moving truck — certain items should go on the truck at certain times, and if everything isn’t ready, it can throw that whole system out of whack,” Flynn says. In addition to adding time to the move, he says the movers won’t be able to pack the truck as efficiently and safely. 

Transparency Is Key

Since moving companies are being stretched thin, Flynn also recommends being completely transparent with them. “Since we’re often on a strict schedule, it is imperative we know everything that will be moved, so we can give a proper estimate and we can stay for the full duration of the move.” Sometimes, people think if they don’t include everything in their request, they’ll end up paying less. But this strategy could have a negative ripple effect. 

“It puts us in a really tough spot, and we have to decide whether we’ll push back the next customer, and the movers might lose the break they were going to have between moves, plus, your price might be significantly more than you were expecting,” Flynn explains.

Give Friends and Family Plenty of Advance Notice

It’s not just moving companies that you need to contact far in advance. “If friends or family are helping, you want to get a commitment ASAP,” advises George Rohlfing, owner of Brookline Transportation, Inc. in Hanover, Massachusetts. The amount of support you get from them may determine how much you’ll need the movers to do — or even if you need movers at all. But if you wait until the last minute to ask friends and family and it turns out that they can’t help, it may be too late to book a moving company or extend your scheduled moving time. 

We’re Still in a Pandemic

Lastly, don’t forget to follow pandemic protocols — and make sure your movers do, too. “With variants of COVID-19 continuing to develop, we are still following health and safety precautions such as wearing a mask, avoiding handshakes and using fresh, clean moving supplies,” says Steven McKenna, vice president and general manager of Allied Van Lines. “Many professional movers like Allied are also providing virtual in-home estimates as a safer option to in-person walkthroughs.”

Find more moving tips on Apartment Therapy.

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Increased Buyer Urgency Expected Amid Rising Mortgage Rates

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Despite various forecasts surrounding mortgage rates, the bottom line is that they are bound to tick up this year, leaving many wondering what this could mean for the housing market.

“Higher mortgage rates are one reason why we will move from an incredibly hot housing market to one that’s strong, but instead of having ten bidders at every open house, you get two or three buyers that are interested,” said Michael Fratantoni, chief economist at the Mortgage Bankers Association (MBA), in a recent interview with MarketWatch.

“Our forecast has that rising to about 4% by the end of 2022,” he said. “That’s certainly higher than we are today, but historically speaking, that is still a very attractive mortgage rate.”

Based on recent Freddie Mac data, 30-year mortgage rates climbed to 3.22% by Jan. 6, maintaining their upward trajectory that experts expect to carry on throughout the year.

The increase in rates will likely push more buyers into the market in search of the best deal they can get before rates get too high, according to a recently released survey conducted by Redfin.

After surveying 1,500 U.S. residents, 47% of house hunters said they would feel more urgency to buy a home if mortgage rates rose above 3.5%, according to Redfin.

While MBA’s predictions of 4% have been on the higher end of predictions in recent months, Redfin Chief Economist, Daryl Fairweather, expects rates to hit about 3.6% by the end of 2022.

“Mortgage rates increasing will make home-buying less affordable,” Fairweather said in a press release. “Over time, that will put the brakes on demand and put an end to double digit annual price growth. But in the short term, this increase will light a fire under homebuyers and make for an extremely competitive January.”

Improvements in the broader economy will help drive rates up this year, according to Fratantoni, who noted the gradual drop in unemployment and demand for workers would persist throughout 2022.

According to recent data from the U.S. Labor Department, unemployment declined to 3.9% in December, with the U.S. economy adding about 6.4 million more jobs last month than at the end of 2020.

The nation still needs 3.6 million jobs to hit pre-pandemic levels.

“We still have almost 11 million job openings in the economy and this tremendous demand for workers,” Fratantoni says, adding that unemployment will probably hit 3.5% by the end of the year with strong wage growth.

Another metric people are paying attention to is inflation, which he suggested CORE inflation to stay elevated longer than pundits and experts anticipated, which will also add upward pressure on rates.

In their December meeting, the Fed indicated that they expect to implement three interest rate hikes in 2022 and accelerate their tapering—cutting back on asset purchases.

While forecasts point toward rates climbing in 2022, Fratantoni also weighed the idea that rates could dip during the year, especially with the recent outbreak of the Omicron variant at the tail end of 2021 and the possibility of a newer variant still up in the air.

He acknowledged the possibility of a short-term drop in rates, leading to a brief uptick in refinancing activity. Still, Franantoni indicated that each variant appears to have less of an economic impact.

“We’ve gotten to a level of comfort with at least prior to Omicron,” he added. “I think we’re moving through that in this case as well. We now have a set of tools to use to deal with challenges around public health concerns that we could use again if a new variant were to pop up.”

Another possible outcome that Fratantoni threw out suggested that rates could climb faster than anticipated, which he said could happen if elevated inflation doesn’t cool off.

“The Fed may really have to stomp on the breaks as opposed to gently tapping them,” Franantoni says. “We could see the rate path move even higher and faster than we have in our baseline forecast.”

With higher rates on the horizon, concerns surrounding affordability issues—particularly among younger, first-time buyers—have mounted, especially when coupled with home prices that surged in 2021.

“2021 had eye-popping home price growth,” Fratantoni says. “Frankly, if that continues too much longer, we’re going to run away from the first-time buyers that we’re really counting on to supply demand in this market,” he says.

While home prices will continue to grow in 2022, Fratantoni indicated that the appreciation wouldn’t match the degree that the industry saw last year, dropping from record-level, double-digit growth to 6% or 7% growth.

Fratantoni expects buyer demand to remain strong despite rising rates and home prices.

“The job market is going to be booming, and we’re going to see the unemployment rate get as low as it was in February 2020,” he said, adding that a demographic push from millennials will also play a part in keeping the market moving.

“The largest single cohort, the millennial generation, are reaching peak home-buying age,” Fratantoni continued. “That is going to generate a tremendous amount of demand because you have a bunch of young folks in their early 30s looking to establish their households right now.”

Given the pace of new construction, he said additional inventory this year would cool bidding wars in the market and provide a more favorable experience for first-time buyers despite rising prices and rates.

“They might get to look at a couple of properties and have more than a few minutes to think about how to make that offer, so I think the process of buying for that first-time buyer should be more pleasant this year even though the ultimate price may be higher given what has happened to home prices.”

Keep reading.

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Where are Millennials Buying Homes?

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Millennials are now the largest group of homebuyers in the U.S., ahead of older Gen Xers and baby boomers.

Despite the pandemic delaying some millennials’ homebuying, they are still eagerly buying homes in the hot housing market.

LendingTree analyzed mortgage its own mortgage offers to millennials across the nation’s 50 largest metros in 2021 to learn where they were buying homes. Here’s what we found:

Key findings:

Denver, Seattle, and Boston are the mostpopular cities for millennial homebuyers. In Denver, 63.63% of mortgages were offered to millennials. In Seattle and Boston, the percentages were 61.35% and 61.08%, respectively.

  • Miami, Jacksonville, and Tampa are the leastpopular cities among millennial homebuyers. Across these three Florida metros, an average of only 46.54% of mortgages were offered to millennials.

  • Millennial homebuyers are the youngestin Indianapolis, Salt Lake City, and Phoenix (average age of 31.79). They’re oldest in San Francisco, New York and San Jose (average age 33.51 years).

  • San Jose, San Francisco, and Seattle require millennials to put down the largestdown payments (average $104,896). Down payments are smallest for millennial buyers in St. Louis, Memphis, Tenn., and Oklahoma City (average $30,551).

The takeaway:

“Though they often have less money at their disposal than members of older generations like Gen Xers and baby boomers do, millennials aren’t shying away from home buying. In fact, they make up the largest share of homebuyers in many of the nation’s largest metros. As they continue to get older, get married and start families, the homeownership rate among millennials is likely to rise even further.” 
-Jacob Channel, senior economic analyst at LendingTree

Learn more on RISMedia.

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This Pandemic Home Trend Couldn’t Survive 2021

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In the early days of the pandemic, everyone wanted a home with a pool. (Within months of March 2020, pool manufacturers reported seeing orders surge by as much as 200 percent.)

Come on, what better way to ride out quarantine than with a blue water escape right in your own backyard? But, according to Thumbtack’s end of year bi-annual report, this trend took a serious dive by the end of 2021.

According to their findings, above-ground swimming pool installations are down 92 percent and in-ground swimming pool installations are also down 32 percent over the last three months of the year (and down overall compared to 2020). Thumbtack also reported a spike in swimming pool removals—up 59 percent compared to the previous year.

So, what gives? And what are homeowners coveting instead?

David Steckel, home expert for Thumbtack, says that the dip in pool popularity could come down to decisions about how people envision their backyard space. For example, homeowners who were once really jonesing to add a pool—or who bought a home with one already installed—may have concluded that it’s not worth the backyard square footage required to fit one in. “This new work, live and play from home world we’re living in means that usable square footage is gold,” Steckel says. And since the average size of an inground pool is 400 square feet, plus a three to four-foot walkway around the perimeter and a fence, he adds that that’s a lot of real estate that families could otherwise devote to trampolines, entertaining and other outdoor activities in their backyard.

In addition, people living in a cooler climates might find the costs associated with a pool to be high, considering there are only a few months out of the year in which it’s useable. Per Steckel, it’s approximately $80 to $200 per month for weekly pool cleaning services, $150 to $1,200 annually for repairs and $75 to $350 per year for inspections. And let’s not forget the rising costs of chlorine, which is now estimated to set you back about $300 to $800 per year.

Steckel also points to a generational gap. Of the seven million homes sold in 2021, more than half went to millennial buyers. And since millennials typically have younger families and might consider pools a danger, that could be another reason for the trend reversal.

So, what’s a good alternative if pools are no longer on your wish list? Hot tubs and spas are currently trending (up 44 percent over the last three months, per Thumbtack’s data) mainly because you can use them in colder climates and year-round. They’re also far more cost effective than a pool and require significantly less maintenance, typically about $75 a month, according to Steckel.

Still, as with all things home-related, he says that trends like this tend to be cyclical. “In some real estate cycles, having a pool negatively affects resale value whereas in others, pools seem to reduce the time a home is on the market.”

In the meantime, we’ll be Googling hot tub ideas…

Read more on PureWow.

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