{"id":38857,"date":"2022-04-06T10:05:00","date_gmt":"2022-04-06T18:05:00","guid":{"rendered":"https:\/\/www.hayden-homes.com\/blog\/?p=38857"},"modified":"2023-06-14T16:56:35","modified_gmt":"2023-06-15T00:56:35","slug":"questions-to-ask-before-buying-a-home-with-a-partner","status":"publish","type":"post","link":"https:\/\/www.hayden-homes.com\/blog\/questions-to-ask-before-buying-a-home-with-a-partner\/","title":{"rendered":"Questions to Ask Before Buying a Home with a Partner"},"content":{"rendered":"\n
\"Questions<\/figure><\/div>\n\n\n\n

There are a lot of considerations to make when you\u2019re preparing to purchase a new home, especially if you\u2019re doing so with a partner, sibling, or friend. Asking yourself these questions will put you both on the same page and ready to tackle the joint work of homeownership.<\/p>\n\n\n\n

Why do we want to buy a home?<\/h2>\n\n\n\n

Discuss your reasons for buying a home now \u2013 are you financially ready for homeownership? Is it better to buy than rent in your area? Do you want to make a smart investment? Having this conversation will help you identify your motivations for purchasing and better understand your partner\u2019s perspective as well.<\/p>\n\n\n\n

How are your finances?<\/h2>\n\n\n\n

Before deciding to buy a home, you need to have an honest conversation about your finances. This is not the time to be shy; be transparent and open with each other. You should be prepared to talk about your income and debts, spending habits, credit score, debt-to-income ratios, employment, and any other assets you own.<\/p>\n\n\n\n

You\u2019ll also want to discuss how much you can comfortably afford, how much you can contribute to the down payment, plans for saving additional funds if needed, and what should happen if someone cannot afford their payments.<\/p>\n\n\n\n

Becoming crystal clear on your finances is critical to make sure your expectations are on the same page.<\/p>\n\n\n\n

How will we split the cost of the home?<\/h2>\n\n\n\n

Buying a new home is a huge financial commitment and the full cost of ownership should be considered. In addition to the down payment, monthly mortgage payments, and closing costs, it’s important to create a game plan to handle additional costs like regular maintenance, property tax, utilities, and replacement costs for appliances and other items around the home.<\/p>\n\n\n\n

It\u2019s easy to assume you\u2019ll split the costs down the middle, but it doesn\u2019t always make sense or is fair; especially if one partner makes significantly more. There isn\u2019t a single way to divvy up these costs but it’s important to discuss and set expectations before purchasing a house. Be sure to revisit the conversation periodically so you remain aligned and can adjust as your situations change.\u00c2\u00a0<\/p>\n\n\n\n

Who is applying for the mortgage?<\/h2>\n\n\n\n

You\u2019ll need to decide whether you want to apply for a joint mortgage or have one person apply individually. Getting a joint mortgage may enable you to purchase more home than you would have been able to afford on your own. Lenders will review both applicants’ credit scores,<\/ins> income, debts, and assets but will use the lower of your collective median scores.<\/p>\n\n\n\n

If one partner has a significantly stronger credit score or lower debt-to-income, it may be worth applying for the mortgage individually. Have your lender run the options so you can make the best decision. Also, the name on the mortgage does not signify ownership (more on this next); it simply states who is financially responsible for repaying the loan.<\/p>\n\n\n\n

How will we title the home?<\/h2>\n\n\n\n

How you decide to title you\u2019re your home is extremely important as it shows who owns the property. There are three common ownership types for unmarried couples, each with its own pros and cons. Here are the most common ownership types:<\/p>\n\n\n\n