When it comes to buying a house, most people who opt for getting one are married couples. Unmarried couples ponder between buying a house and budgeting or renting. Some couples make the choice of getting a house together, and this can be the greatest joint financial investment for most people therefore much thought should be given towards the financial and legal requirements before making such a leap.
#1. Down Payment
After the recent financial constrains, most banks are now asking for larger down payments when buying a house, often as much as 20% of the house’s worth. Some banks also require that the money for the house should be from the couples earning and not be provided for from other sources like inheritance, loans. By looking at the situation, some couples are given the chance to qualify for a better mortgage.
Most banks require that both couples to be on the mortgage whereas the couples may also feel secure that both their names are on it so that they both become responsible for the debt. On the other hand though having one partner on the mortgage can also be a good idea if one of them is not working, sick or has a significantly lower income earning potential.
#3. House buying partnership agreement
Being together as unmarried couples, it is vital to put all money matters in black and white. A legal real estate lawyer can write an agreement document which clearly states how financial issues should be carried out and what each partner will give towards the down payment, monthly mortgage and other relevant aspects. This agreement should also state what will occur if by any chance the couples decide to part ways. In short, a written partnership agreement by both partners is essential.
#4. The bottom line
Buying a house is a large expenses for couples. Talking about all the variables involved in buying a house with ones partner is very important. In that way, a partner will know what the other wants to contribute or what their obligations are. An agreement can then be made to see that their rights are not violated and they will also know the cost involved in getting a house together.