Buying A Home With Your Partner? Get Answers To These Questions First
You and your partner may be tired of paying rent for a small apartment. It's time to look for a home that you can both share. If you're ready to make the dive into the real-estate world, explore the questions that you should ask now as a couple. The answers can guide you toward the right decision.
1. Are You Settled Into a Career?
Buying a home with your partner is never a good idea if a career remains unstable. Hopping from job to job is questionable to lenders as you apply for home loans. Additionally, any new jobs may not be in the immediate area. If either person has the chance at a new career in another city, it's best to hold off on buying a home. People who have stable careers in the same area should consider a home purchase close to those companies.
2. Do You Both Have Good Credit Histories?
If even one person has bad credit, a home purchase may not be in the near future. Take a look at your finances. Be honest with each other when it comes to debt, bankruptcy, and other details. Holding back information will only create issues down the road. Both parties need good credit and only a small amount of debt. Lenders consider you as a risky investment if you have too much debt right now.
3. Is There Enough Money for a Down Payment?
Pooling your money together for a down payment makes financial sense. Consider your budget when it comes to a home's price. Ideally, you want about 20-percent of the home's cost put down as an initial payment. Ask your lender about loan programs that might require a smaller down payment too. One of you might qualify for these specialized programs.
4. What Type of Property is Attractive?
Initially, you may be concerned with a home's decor and amenities. Put those concerns aside because you need to concentrate on long-term decisions. Ask yourselves if the home should be large or small, such as supporting a future family. Would you like to be close to schools, the beach, or other locations? Buying a home means that you'll be living in this area for many years. Pose these questions to each other so that you can narrow down your search.
5. What Happens if You Part Ways?
You may both love the homes for sale in Montgomery County, but mindsets change over time. Your relationship may not work out as you first thought. Before you commit to a property, consider a legal agreement. Both parties should have their own attorneys who can draw up fair documents regarding property division or sales. You may never use these documents, but they protect each person in the event of a breakup.
Be sure to communicate with your lender if you want to pull out of a potential sale. You aren't committed to any home purchase until you sign the closing documents. Continue to ask those hard questions so that a calm, home life is possible.
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