UNMARRIED BUT BUYING A HOME TOGETHER? THINGS TO PLAN FOR: 3CALoan
Buying a home together is a big commitment. If you are not married and still buying a home together then you will both have some unique challenges. Before you both sign the contract and become homeowner together, you should know the ins and outs of this. Below we will explain some things which you should understand before taking the home loan for a real estate.
DISCUSS YOUR FINANCES
If you are really thinking about Buying a home together, you should know about the financial condition of each other. Before you discuss the financial background with your home loan lender, you should know about all the details of your partner like financial history, debts on their name, their credit score, and their income. Because after the home loan application process begins, you will also don’t like anything which pops up and causes any conflict. If one of you has a bad credit score, then the holder with a good credit should apply for the home loan alone. Because If you will apply for a home loan with one of you with bad credit then it could affect your approval in a negative way.
DETERMINE HOW COSTS WILL BE SPLIT
It is also important thing while buying a home together that how will you split the closing costs and down payment of your home loan. If you already live together, then it will easy for you to split because you might have planned that who will pay the bills and other expenses. And you will also need to decide that how to handle the monthly payments, monthly emergency repairs, and monthly utilities. You can create a legally binding contract between you two by writing all the expenses in order to keep track with the help of real estate attorney. For funding your home expenses, you can also create a joint bank account because it will beneficial for both of you.
UNDERSTAND OWNERSHIP OPTIONS
If you are buying a home together and splitting the cost, then you will also have to choose the type of ownership you both want to take. You have to take it seriously because this is an important factor while buying a home together with someone you are not married to. If you are paying for a loan but you are not listed as the owner on the title, you will not able to deduct the mortgage interest on your tax return. There are three types of ownership:
Joint Tenancy
In this type of ownership, both of you own the property equally. The property will get in the hand of your partner if something were to happen to you.
Tenancy in Common
In this type of ownership, each owns a percentage of the property. The ownership interest will direct go to any trust if something happens to one of you.
Sole owner
In this type of ownership, one person retains full property ownership rights. For example, if one of you has the poor credit score or if only one of you is paying all the expenses of the house.
ALWAYS HAVE A BACKUP PLAN
Sometimes the things which happen in life don’t turn out as planned. Both of you should have legal protections in place if you are buying a home together but you are unmarried. For buying a home together, it is good to draw up a partnership agreement. It is the best way to avoid the risk and go into your home purchase with a written agreement.
Final Thoughts
Buying a home together is a great investment, but you have to be careful and avoid making any costly mistakes. To find out more information about the ins-and-outs of buying a home together or If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! Our goal is to provide opportunities for people to meet their financial goals. Our competitive rates, efficient services, and talented team can help ease the loan process. We help our customers every step of the way. We prioritize informing and educating our clients about the home loan process.
Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. We will run you through the details of home loans and hold your hand throughout the process.
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