Uncategorized – The Korwels Team

Tips for Unmarried Couples Buying a House

For unmarried couples, the excitement of buying a home can be tinged with a bit of uncertainty. Fear not! With some careful planning and knowledge , you can navigate the process smoothly and build a secure nest together.

Understanding Title Ownership: You Say Yours, I Say Ours

One of the key differences unmarried couples face compared to married couples is the lack of automatic legal protections. This is especially true when it comes to ownership of the property. Here, you’ll need to decide how you want to hold the title, essentially determining how you own the house:

Joint Tenancy with Right of Survivorship: This is the simplest option. Both partners own the property equally, and if one partner passes away, the other automatically inherits their share. This avoids probate, a lengthy and costly legal process that determines how assets are distributed after death. Sounds perfect, right? Well, it’s important to understand that both partners have equal rights to the property, meaning either can sell their share without the other’s consent.
Tenancy in Common: This option offers more flexibility. Each partner can own a different percentage of the property, based on their down payment contribution, for example. You can also designate who inherits your share upon death through a will. This might be useful if one partner contributes significantly more financially. However, tenancy in common does not include the right of survivorship. If one partner dies without a will, their share may go to their legal heirs, which could potentially be someone other than your partner.

Choosing the Right Title:

Deciding how to hold title depends on your specific circumstances and long-term goals. Here are some factors to consider:

Financial Contribution: Did one partner contribute a larger down payment? Tenancy in Common allows you to reflect that contribution in ownership percentages.
Future Plans: Do you plan to have children or get married in the future? Joint tenancy with right of survivorship might be simpler, but discuss how future life changes could impact your decision.

Remember, this is a crucial decision. Consulting with a local real estate attorney is highly recommended. They can explain the legal implications of each option within the context of your state’s laws and help you choose the title structure that best suits your needs.

The Mortgage Maze: Two Hearts, One (or Two) Mortgages?

Getting pre-approved for a mortgage is an essential first step in the home-buying journey. However, as an unmarried couple, there are some additional things to keep in mind:

Joint Mortgage Eligibility: Both your credit scores, income, and debt-to-income ratios will be considered to determine your borrowing power.
- Credit Scores: The lower of your two credit scores will often affect the loan terms you qualify for, including the interest rate. Discussing credit improvement strategies and working towards a healthier credit score together can be beneficial.
- Income Verification: Combined income determines the maximum loan amount you can qualify for.
- Debt-to-Income Ratio: This ratio shows the lender how much debt you carry compared to your income. A lower ratio (typically below 36%) indicates a better ability to manage mortgage payments.
Applying for a Mortgage as Unmarried Partners: Be transparent with the lender about your relationship status. This could affect the loan agreement. Have all necessary documents ready, such as proof of income, employment verification, and identification for both partners.

Beyond the Bricks and Mortar: Protecting Your Nest Egg

While love is the foundation of any relationship, legal agreements can provide much-needed peace of mind. Consider these two options:

Cohabitation Agreement: This outlines who owns what assets and how finances will be handled if the relationship ends. It can address things like furniture, appliances, and even shared bank accounts.
Property Agreement: Similar to a prenuptial agreement, this specifies each partner’s financial contribution to the property and how it should be divided upon separation or death. This can be particularly important if one partner contributes significantly more financially towards the down payment or renovations.

These agreements can prevent disagreements and potential legal battles down the road. Remember, a real estate attorney can help draft these documents properly to ensure they are legally binding.

This post has explored the key considerations for unmarried couples buying a house, from understanding title ownership and navigating the mortgage process to implementing legal protections like cohabitation agreements and property agreements. Remember, seeking guidance from a real estate attorney is invaluable throughout the journey.

So, are you ready to turn your dream of homeownership into a reality? Contact us today! We can help you navigate the process from start to finish, ensuring a smooth and stress-free experience. Let’s build your dream home together, on a foundation of love, planning, and legal security.

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Trunk & Treat 2023

Join us and some of our favorite clients and friends for this unique Halloween event, held on Sunday before 👻 Halloween 💀.

When: Sunday, October 29, 2023 from 1 to 3pm

Where: Parking at Keller Williams Madison West, 555 Zor Shrine Pl #100, Madison, WI 53719

What: Food 🌮 & ice cream 🍦 truck + lemonade stand 🍋

Bounce 🛝 houses & games 🎯

Children’s jewelry 💍 and clothing 🧢 vendors

And of course, plenty of Trick or Tricking candy 🍬!

No RSVP needed, just stop by!

Bring along family and friends!

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Let’s bake cookies

Double Chocolate Peppermint Cookies

Instructions

Preheat oven to 350 degrees F.
In a bowl, mix the butter and sugar together for about 2 minutes.
Add egg, peppermint extract and beat well, until light and fluffy.
Sift flour, salt, cocoa powder, baking soda and powder gradually over the wet ingredients, mixing as you go, until well combined.
Add chocolate chips and lightly stir in with a mixing spoon.
Chill the dough in the freezer for 10 minutes while the oven finishes heating.
Form the dough into small balls (heaping 1 Tbsp) and place 1.5 inches apart on an un-greased or parchment-lined baking sheet. Press the tops down and then top with a few more chocolate chips for more flavor.
Bake for about 10 minutes. The edges should start to dry but the tops should still be slightly soft looking.
Set on the cookie sheet for a few minutes more but sprinkle crushed candy cane on right away.
Transfer to a cooling rack to rest until completely cooled.
Store in an airtight container to keep fresh for up to a few days or freeze for several weeks.

Ingredient list

1/2 cup unsalted butter
3/4 cup sugar
1 large egg
1/4 tsp natural peppermint extract
1 1/4 cup unbleached all-purpose flour
1/3 cup cocoa powder
1/4 tsp salt
1/2 tsp baking soda
1/4 tsp baking powder
1 candy cane, finely crushed
1/3 cup dark, bittersweet or semisweet chocolate chips

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Spring Home

First warm days of season are upon us, and with this, it feels good just going outside after long months of cabin fever.

Take a walk around your house, backyard, and garden, and check on everything after the winter season. This is the perfect time to make take care of small maintenance tasks and catch problems before they affect value of your home and turn into expensive fixes.

Check full list of small and easy tasks below!

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How many bedrooms?

How much of a house do you need? When you start looking for your place, the first question you need to answer is how many bedrooms and bathrooms do you want or need. The question sounds simply only on the surface. There are few philosophies you can use to help you to the final number.

Now and in the future

One approach is very logical, but requires planning ahead. Consider how many years you plan to stay in the house? Will your kids still live at home at that time? Will you have more children? Can siblings share a room? Will you parents would want to move in, to help take care of the kids – or be taken care of? This should give you a good idea how many bedrooms do you need. Add a guest bedroom or an office if you plan to work from home or host relatives dropping by with a visit.

Each one their own

Another approach asks you to do simple math. Count a room per person you expect to live in the house, and add one bedroom for guests. This risks too many spaces (it counts for example two bedrooms for a couple) and paying to heat and light unused space – it will also add to your property tax. However, it will come handy if the house you select will not have a dedicated space for a home office, typically located off the main entrance – or a non-conforming bedroom to be turned into an office. A non-conforming bedroom is a room without a closet and window or with window that is higher than 4 feet high above the floor.

Resell approach

The third one considers resale value, and essentially suggests to get a so called “cookie-cutter” house of 3 bedrooms and 2.5 bathrooms. Those houses are also easier to rent if you decide to turn it into source of income in the future. Above 4 bedrooms, it’s considered luxury home, which might be harder to sell in the future.

A bit about bathrooms

That is a whole topic by itself. It all boils down to personal preference, where you want to have bathrooms, and how many you think your family lifestyle will require. If you entertain often, half bathroom by the living room is extremely useful. It provides privacy for the rest of the house and is convenient for the whole family.

At least one bathroom per livable level is a must. At the same time, if a level contains only family or living room-kitchen area, half bath will do. Beyond that, the decision is really down to your personal preference. It becomes popular for each bedroom to have its own bathroom. Sometimes you have cute Jack-and-Jill bathrooms for adjoining bedroom, very practical solution. Again, typical house will have 2.5 bath, and for most families, it should be perfect.

Reality check

Next, the number of rooms itself does not determine the size of the house. The rooms can be bigger, a good idea if you want siblings of similar age share the room. If the bedrooms are smaller, each kid can have its own space without adding too much to the whole house.

Make a decision based on what you think appropriate number of rooms will serve you best – and than consider the square footage you can actually afford. For affordability, use the rule of thumb for value of the house to be at 3 time your annual household income. Depending on the average prices of square footage in the area you are moving to (check our Community pages for prices around Madison, WI), you should be able to quickly calculate what you can afford. With that, give us a call or send us an email (click here for contact information), we can take it from here!

Tips around the house

Spring around the house

First warm days of season are upon us, and with this, it feels good just going outside after long months of cabin fever (particularly if you live up North). It is a good time to take a walk around your house, backyard, and garden, and check on everything after the winter season. Even if you live in an apartment, there are things you can do, so please continue reading our tips collected from around the Internet.

On your balcony or deck

Clean patio furniture. Soapy water and soft brush or sponge will do the trick for most types of materials.
Wash the pillows and outdoor rugs. Check the manufacturer’s instruction if fabrics can be washed in the washing machine.
Give your grill thorough scrub. Long-handled stiff-wire brush works on all types of grates.
Refill propane tank for grill to be ready for first grilling of the season (we already started ours!)
Check the deck surface: does it need any repairs? Maybe fresh coat of paint is in order this year?
Consider planting containers with ornamental plants, maybe even vegetables or herbs. Particularly if you do not have a big yard or live in condo, few containers will add life to your outdoor space.

Around the outside of your house

Wash your windows, from outside and inside. You will see so much more light coming in. My recently discovered quick tip – glass cleaner and squeegee.
Replace any used exterior light bulbs, on house walls, in the walkways, on the deck.
Check and clean gutters and spouts, make repairs if needed.
Hose down or power wash home exterior.
Check your roof for any obvious problems.
Check your fence if you have one: does it need any repairs? Is it in need of fresh coat of paint?

Lawn and backyard

Clean your lawn: brush back all remaining fall leaves and remove fallen branches. Pick up litter and any pet waste.
Identify bold spots in your lawn. Mix seeds with fresh soil and fertilizer and seed fresh grass. Remember to keep it moist until it starts growing!
Prune all shrubs and trees – it will encourage new growth
Check water hoses for cracks and leaks. Make any needed repairs – or buy new parts.

In the garden (or container garden)

Remove winter layer of mulch if you had any placed to cover plants from freezing
Add new layer of mulch around trees and shrubs
Cut majority of stalks of ornamental grasses to have them come back fresh
Pull any dead annuals. Consider replacing them new ones?
Remove dead growth of perennials, they will come back fresh and strong.
Take an inventory of plants you already have – and start planing what you want to add when time comes. Make shopping list of seeds or plants.
Build new vegetable beds if you need more/new ones. They will be ready when you need them!
Now it is also good time to seed cold-loving vegetables, for example salad greens or radishes. You will be able to enjoy them in no time.