Life can be pretty hard if you’re not straight – and this is especially true if you’re looking for a snug nest to settle down with a same-sex partner. From discrimination and mortgage issues to wills, down payments, and other legal aspects of homeownership, buying and owning a house can easily turn into a nightmare for pretty much anyone, and members of the gay population are not an exception. Still, as challenging house ownership appears to be, there are a few ways to get the necessary funding for your nest and efficiently run your home with minimal risk in tow. Here are the top five things you need to bear in mind when looking for a home to call your own.
1. Get a timely credit score check
Before you embark on a house-hunting spree, you will need to look into your credit score to see whether you and your partner can get a bank loan or a mortgage. As a general rule, the higher your credit score, the greater your chances at getting the loan will be. Usually, a score between 700 and 749 will land you a relatively low interest rate, while anything beyond that will allow you super-high mortgage savings down the road.
2. Sort down payment essentials
As a first-time home buyer, you will have to make a down payment, which can be quite tricky if you’re short on readily available cash. If you aren’t a big fan of classic loan channels, you can always look into private lenders or consult your friends and family for a financial leg-up. Note that most private mortgage insurance agencies charge a separate fee to borrowers who have a down payment below 20 percent as means of protection against risk. Annual PMI costs generally range between 0.5 and 1 percent, but if you don’t want to take any risks, you can start by reducing your living expenses with a view to saving for the down payment on your own, without the need for external funding.
3. Tend to debt-to-income ratio
To see how much home you can afford, you will also need to look into your debt-to-income ratio. One more reason to do this is the fact that lenders will also take this info into account when deciding whether or not to grant you funding. In general, you can work on your debt-to-income ratio in several ways, such as getting a side job or reducing spending by DIY home repairs. Nevertheless, you should earmark a decent part of your funds to potential emergencies around the house and show common sense when choosing household maintenance services. A reputed emergency electrician in Sydney can be a life- and money-saver as they won’t rip you off for fixing a minor issue that simply has to be professionally taken care of immediately upon moving in.
4. Be realistic with home choices
One more thing that some gay couples neglect to look into properly, the size and shape of your new home can make or break your house-hunting success. The home that you will buy should be a realistic match for your needs and budget, as well as your monthly mortgage payments, so make sure you’re not buying a house just because there is nothing better on the market. Also, when looking for a place to call your home, inspect all crucial aspects such as wiring, plumbing, and bathroom fixtures. Oversights due to hasty choices can punch a deep dent in your budget and leave you cashless in the worst possible moment.
5. Have legal ownership in writing
If you’re not a married couple, it may be a wise move to get legal ownership in writing. That way, you will avoid potential disagreements and disputes as to who owns what. Your legal advisor will also be able to provide you with critical information on the most effective and feasible procedures on how to structure the ownership agreement in writing so that both you and your partner are covered in case of a breakup or separation. Whether you opt for equal ownership or any other ownership mode, the agreement should be crystal clear and legally binding for both sides.
Are you ready to settle down with your gay partner any time soon? Bear in mind the tips listed above and see that each of them is addressed timely and properly in the form of a professionally written document, and your future real estate deal would be as safe and as happy as LGBTQ houses can go.
QUEERGURU Correspondent PETER MINKOFF is a gay health and lifestyle writer at QUEER VOICES magazine.
Besides writing, he worked as a freelance fashion stylist in Europe and Australia. A true craft beer and soy latte
aficionado, he loves spending his days at the beach and visiting second hand stores on a daily basis.
Follow Peter on TWITTER for more tips.