Buying a home when married vs before marriage

[Gosia & Tito 199]

Hi All,

I'm (beneficiary) currently in the TSC backlog of my K1 application, submitted November so am hoping that we get approved in the next couple of months, the wait is a total killer!

My fiancee who lives in Texas has a son whom is starting school in August so she needs to move to another school district to get a better school than the one she is currently living in, this needs to be done June/July to make it in time for the August registration. I think the earliest I'll be out there is late September, and we'll get married the same week I land. I'll have no employment for 3 - 4 months. And of course no credit rating for a good while.

My fiancee has got pre-approved based on her income for a home loan. The rate is not great compared to rates that could be got if we raised her credit rating by 40 points, though that'll take time (probably by that time interest rates would have gone up negating the work on the credit, who knows).

In any case we are in a position where if we see something we like we could go for it. I was wondering if anyone knew what would happen if we couldn't find anything before we got married. What happens with the application of a home loan when we are married as I have no credit rating (and maybe no income)? Can we still apply for a home loan just on my fiancee's salary like we have now? Would they just ignore me (even if I had a job too) as my credit rating will be low or non-existent?

We have thought about renting for the next six to twelve months but are worried about the above and also missing out on the low interest rates.

Any experiences on buying a home during the K1 and early parts of AOS process?

Thanks for any advice/help!

The loan itself can be in his name only, but TX being community property requires that both are in the title -if you are married at the time of purchase. Low interest rates most commonly happen in Dec-Feb time frame but is not a guarantee that anyone can give...just what I've seen in the past few years. More important is to find a good lender and even more important is to look into the possibility of lower the rate by using points (which could be deducted from taxes). You could always refinance later, and in fact, you might want to do the numbers getting a 30yr traditional (no ARM) now and then refi in Jan-Feb to a 15yr, once you have a job. There are costs to the refi, but doing it right will shave 15 yrs of mortgage interest, might get you a better rate overall and the refi itself would be "paid off" rather quickly depending on the rates you had and you find.

ALso consider that buying before end of year allows to declare this residence as your homestead, that gets you sizable reduction in property taxes.

And assuming your fiance knows all about the MUD taxes and all these other interesting taxes and fees TX has

[Gosia & Tito 199]

Thanks for info! Just wanted to check there's no difference between pre-marriage to post-marriage but sounds all good. Yeah totally agree, my thinking is to be ready as much as possible so when we do find "the" house we have everything in place to buy it. So we don't miss any opportunities, plenty of houses come on every week in Houston so it seems a case of waiting for a good candidate home.

Re. Interest rates, interesting at the moment, from what I have read its all waiting on what the federal reserve will do. They have said that they will increase interest rates but are debating over increasing mid-2015 or 2016. With the dollar strong at the moment there doesnt seem to be a big push to do so with the euro all concerned over Greece and Japan struggling a bit at the moment. Its all crystal ball stuff as always but the one "fact" seems to be that they won't go lower than today so if we get an opportunity then we should take it. My thinking is just make sure in this first step we do our best to avoid being too hasty which we regret later on.

You will always get "it's going to increase soon" stories. Remeber that your lender is making a commission, no loan no commission. You want to shop around exhaustively for best conditions (and that is not only the rate itself, but total cost of the loan; then taxes in the area, etc). WIth Houston traffic what it is, you might want to live not far to where your daily activities, commute, etc is.

Raising credit rating by 40 points is quite a big jump IMHO, and that could take quite a while.

WHile there are more supply and hence better prices in this time of the year, and until Aug/Sep, also consider that same as you, many parents shop for houses exactly for the same reason your fiancee is: school district.

[Nich-Nick 3,353]

I was married when I purchased my home in Texas in 2009. My husbands name is not on the deed. It was not required. Homestead exemptions for property tax reduction are determined by who owns the property on January 1 and uses it as their principal residence. A purchase this year would reduce the tax bill that comes at the end of 2016. It's too late for the 2015 homestead.

[VOL 425]

My husband is the only one on the home loan, however we are both on the title. You do not have to be on both.

You have all the benefits of owning the house, and no responsibility.

[VOL 425]

Just something else to think about- Texas is a community property state. Anything bought prior to marriage belongs to that individual only. Not that I wish you ill, but if 10 years from now you divorce, the house would still be 100% hers, regardless of who actually pays the mortgage. If you wait until after marriage to buy the house, it is joint property, regardless of who obtains the mortgage or how it is titled.

Not exactly true, The judge could rule that during the 10 years the homeowner would have to pay a certain amount due to the house note being paid while together......

[VOL 425]

OP - I suggest when you get to Texas you get a Pre Nup. That way when you go to work and start earning your husbands Xwife can't try to get her divorce modified and also use your income as part of child support.

This is one of the great thing about a pre nup

[NikLR 13,220]

You have all the benefits of owning the house, and no responsibility.

I'm married. Of course I have responsibility even if it's not on paper. If I wasn't married, I wouldnt be in the USA, period. I also make income and that income goes towards expenses, savings, and fun things. Thankfully we can live on one income so we're not worried about losing a job either. Our expenses will never be too much for us to handle.

It also wasn't my choice not to be on the loan. My husband and lender decided it would be best. Take it up with them? Not everyone is worried about money grubbing exes apparently.

[NikLR 13,220]

OP - I suggest when you get to Texas you get a Pre Nup. That way when you go to work and start earning your husbands Xwife can't try to get her divorce modified and also use your income as part of child support.

This is one of the great thing about a pre nup

FYI I think the OP is a man. Of course it's possible his fiancee used to be a lesbian but then it would be his wife's ex-wife... I think.

[Nich-Nick 3,353]

This is an interesting read about property laws in Texas written by an attorney specializing in real estate law http://www.lonestarlandlaw.com/Joint-tenancy.html

[rob999 51]

This is an interesting read about property laws in Texas written by an attorney specializing in real estate law http://www.lonestarlandlaw.com/Joint-tenancy.html

Yes I had seen information like this before. What I've read is a will is not enough to ensure the correct division of estate on the death of one or both, especially when it's not a simple 50/50 split. E.g. if one pays the deposit. Basically to ensure that the will is executed as ordered both a joint tenancy agreement and pre-nup is needed to protect the execution of the will, especially if one partner had any prior partners (my fiancee does not i.e. she did not marry, but there is a child). On top of this there's the management of debt which I have only just scraped the surface with, ensuring that the debt is managed correctly to protect family seems to be tricky too. A lawyer is definitely needed, though a little homework is always good before I seek one.

[VOL 425]

FYI I think the OP is a man. Of course it's possible his fiancee used to be a lesbian but then it would be his wife's ex-wife... I think.

Yes, I just re read.

OP would be best (in my opinion) to let your fiancé go ahead and get the house and put the note in her name and interest rates are lower than they will ever be in our lifetime. That way her credit is tied up in the house and not your.

Then I would find another house and buy it in your name and make it a rental and let the renter pay your note, in a few months after you have established credit.

I would also do a pre nup and that will also keep your and her assets and income separate, in case she files bankruptcy then it will not effect your credit rating.

Good Luck..

[Nich-Nick 3,353]

Yes I had seen information like this before. What I've read is a will is not enough to ensure the correct division of estate on the death of one or both, especially when it's not a simple 50/50 split. E.g. if one pays the deposit. Basically to ensure that the will is executed as ordered both a joint tenancy agreement and pre-nup is needed to protect the execution of the will, especially if one partner had any prior partners (my fiancee does not i.e. she did not marry, but there is a child). On top of this there's the management of debt which I have only just scraped the surface with, ensuring that the debt is managed correctly to protect family seems to be tricky too. A lawyer is definitely needed, though a little homework is always good before I seek one.

Well I guess if you read lawyer websites it will scare the bejabbers out of you.

[sweetswinks 400]

My husband bought a house last year when he still had a conditional green card, a mere 16 months after moving to the US.

Did he get a mortgage or buy it outright?

[Jmalaysia 8]

Not exactly true, The judge could rule that during the 10 years the homeowner would have to pay a certain amount due to the house note being paid while together......

Yes, the judge can award a portion of the mortgage as a reimbursement claim. Getting a reimbursement claim for a portion of the mortgage payments is not equitable with owning 50% of the property, however.

[ChicagoSarah 127]

Did he get a mortgage or buy it outright?

Not sure about her situation, but we're closing on a house in a few weeks. My husband has been in the US since October 2013 (18 months) and had his green card less than a year (9 months...he had his EAD card before that). We started building his credit as soon as he landed (credit card with a low limit, another credit card when allowed, name on all bank accounts, electric bill). We're both on the mortgage loan (he may even be the primary) for this house. Sadly, none of his UK credit or previous home-ownership matters here, so we had to start over and build his credit.

I think the loan situation comes down to how quickly and effectively the immigrant builds credit and also on the lender. We have a good relationship with our bank and have done everything through them, partly so that this process would go smoothly.