Buying a new home is always an exciting but challenging process for every couple. When it comes to LGBTQ+ couples, it can be pretty exhausting as there are lots of considerations and careful steps that need to be taken. Since the Supreme Court ruled on marriage equality in 2015, there has been an increase in homeownership by LGBTQ+ couples. Still, the process has yet to be facilitated. To help LGBTQ+ couples make the right choices, this text will outline five essential tips to help them make informed and confident decisions when buying a home. 

  1. Check Your Credit Score

The first step in buying a home is checking your credit score, which plays a crucial role in securing a mortgage. Lenders use this credit score to assess the risk of lending money to you. The higher your score, the better your chances are of getting fantastic terms. 

A good credit scoring range is between 700 and 749. Those above 750 are excellent and will help you get the mortgage with the best possible interest rates. 

To improve your score, focus on paying down debt and making time for payments. If you have any credit report errors, try to correct them. 

  1. Mind your Debt-to-Income ratio

Your debt-to-income (DTI) ratio is the second factor lenders will consider when determining your mortgage credit score. It is calculated by dividing your monthly debt payment by your gross monthly income. A preferable DTI ratio is 43% or lower

Good advice would be to allocate no more than 30% of your gross monthly income to housing expenses and pay off as much existing debt as possible before applying for a mortgage. This will increase not only your DTI ratio but also your chances of getting approved. 

  1. Prepare for the Down Payment

The down payment is the upfront cost you need to pay at once when the buying process starts, and it can be a significant hurdle for many first-time home buyers. Most lenders require a down payment of at least 20% to avoid paying private mortgage insurance. 

Set aside bonuses or raises to save for that down payment and avoid expensive purchases. Potential strategies include selling investments, getting a second job, or borrowing from a relative. 

To avoid paying private mortgage insurance, you must secure a down payment of 20% or more. You should try to avoid it because it costs between 0.5% and 1% of the loan amount annually. 

  1. Know Your Rights 

Now, we get to the point where you need to understand your legal rights before anyone else tries to guide you through the process as an LGBTQ+ couple. The Federal Fair Housing Law prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability. This protection covers LGBTQ+ individuals under the category of sex discrimination. 

If you believe you have been discriminated against, you can file a top complaint with HUD’s Office of Fair Housing and Equal Opportunity or your state or local human rights agency. 

When you know your rights, you can resist discrimination and ensure that you receive fair treatment throughout the home process. 

  1. Review Your Dream Marital Assets

If you are legally married, purchasing property together can be titled “tenancy by the entirety.” This will offer protection from creditors and ensure that the surviving spouse automatically becomes the sole owner of the house after the other’s death. 

However, if you are an LGBTQ+ couple who has acquired property before marriage, then you can have a Joint Tenancy with the rights of survivorship. This option enables the property to pass to the surviving partner without probate but does not protect against creditors. Or you can have a Tendency in Common that does not offer adequate protection for surviving partners as each tenant’s share of the property can go to their heirs’ rather than the surviving partner. 

The best thing to do is consult an attorney who specializes in LGBTQ+ legal issues so you can be sure you’re making the right decision. 

How Property Managers Can Help 

Property managers can be invaluable allies for LGBTQ+ couples in the home-buying process because they bring expertise, local knowledge, and a network of contacts that can make your journey a lot smoother. 

Conclusion 

Homeownership is a significant and exciting milestone for LGBT+ couples. To do it successfully, you need to check your credit score, manage your debt-to-income ratio, prepare for a down payment, understand your rights, and review your pre-marital assets. Plus, ask for help from property managers, who can provide valuable support and resources. Only by careful planning and the proper support can LGBTQ+ couples achieve their dream of homeownership.