Real estate laws tend to favor married couples, offering legal rights that unmarried couples don’t have unless certain legal steps are taken. If you’re considering buying a home with your boyfriend or girlfriend, here are a few things to keep in mind:
The decision to buy a house with your boyfriend or girlfriend can be a good move.
Some of the benefits of purchasing a home with a boyfriend or girlfriend include:
• You can qualify for more. The lender will take both incomes and credit scores into account, so you could pre-qualify for a larger loan amount than you would applying separately.
• You’ll split expenses. Purchasing a home together means you’ll be able to share expenses, saving money in the process. It’s also easier to come up with a down payment when both people are contributing.
Buying a home together can be risky.
Potential problems that could arise from buying a home together include:
• The potential breakup. No one wants to think about the possibility of their relationship going south, but a breakup can complicate your arrangement unless you have a legal agreement in place.
• Damage to credit. When both names are on the mortgage application and title, your credit will be affected by your partner’s actions. If he or she forgets to make a payment, or you break up and your partner stops paying his portion, your credit will get dinged as well.
Protecting your investment
If you buy a house with your boyfriend or girlfriend, it can be a great way to save money and start a life in the home of your dreams. It can also wreak havoc on your finances if you’re not careful and the relationship turns sour.
If you do decide to buy a home together, make sure you consult with an attorney and get a legal agreement before you complete the purchase. This contract should outline how the ownership of the home will be shared and what to do with it if one partner dies or if the relationship ends. This is the most important part to buying a house with a boyfriend or girlfriend when you are not married.
In the meantime, you can start the process by researching different loan options, like the many different loan products available at NLC Loans.