Couples considering buying a home together should heed these warnings
In a previous blog, I shared info about a prenuptial deed when buying a home together after you’ve tied the knot. But what if you and your partner decide to buy a home together before you get married?
Stats on Home Ownership Before Marriage
According to a recent poll by MONEY, 40% of millennials say home ownership is a bigger priority than marriage. But if these young people just starting out their lives are not careful, their new home could be the end of their relationship. Here’s a list of things to consider before signing a deed together:
- Credit Scores
An unmarried couple doesn’t have to purchase a home jointly. They can figure out which of the two has the best credit score and cosign the property to the other. - Titles
An unmarried couple can use one of three main titles when they purchase a property together. The title of Sole Owner gives 100% of the responsibility for the debt to one person. Tenants in Common is for those who want to own the property together, but each partner owns a different amount. Joint Tenant gives both people equal ownership. - Understand Your Debt Responsibility
Experts say to choose a home you can afford on your own no matter which of the three titles you choose. - Make it Legal
Prevent heartache by writing down expectation before you sign anything. With the help of an attorney, you can create a binding agreement before you buy a property. - Expenses Don’t End
Being a homeowner comes with responsibility, especially financially. However, the benefits of being a homeowner can far outweigh any potential problems.
I wish unmarried and married couples happy house hunting when buying a home together. For inspiration, check out some amazing listings in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities. Give me a call at 805.886.9378 or email me at [mail_to email=”Cristal@montecito-estate.com”]Cristal@montecito-estate.com[/mail_to] and I’ll happily find the perfect home for both of you!