When prospective homeowners begin their search for a home, they often find a lot of articles talking about purchasing with their spouse. But what if you and your partner are unmarried?
Whether marriage is on the backburner for now or you and your partner have no interest in it, it’s possible for you to buy a home together! But before you do, ask yourselves these three questions first.
Who is Applying For the Mortgage?
One of the first questions you and your partner should discuss and agree on is: Who will apply for the mortgage and be on the title?
In these cases, it’s best to know the most common choices:
- Tenants in common: Each co-owner is on the title and owns a percentage of the home.
- Joint tenancy: Each person has an equal share of the home.
- Sole ownership: One person holds the title as sole owner.
Work with your real estate agent and mortgage lender to determine the best option for you and your partner’s situation. In some cases, one partner may have responsibility of full ownership for financial reasons.
For example, the partner who has the better credit score, debt-to-income ratio (DTI), employment status, and income may be the best choice. Not only do they look better on paper, but even the smallest difference in credit score and DTI can save you and your partner thousands of dollars in interest.
What Are the Laws Regarding Cohabitation in Your State?
Each state has its own laws regarding cohabitation property rights and how you and your partner’s arrangement could be classified. For example, if you were living in a common-law state, you and your partner’s decision to purchase a home and live together could be considered a common-law marriage. This will affect how the law views you when it comes to assets.
Should You Get a Property Agreement?
Yes! Even couples who have been together for a long time should get a property agreement. As Missouri is not a common-law state, you and your partner will need to take steps to ensure that the property will be handled in a manner of your choosing in the event of a breakup or death of a partner.
No one likes to think that they’ll break up with their partner after going through the process of buying a home together, but it’s better to be safe than sorry. Think about why you want to purchase a home together and consult with a real estate attorney before signing anything. Unmarried or not, purchasing a home is a huge financial undertaking so you want to make sure that you and your partner are protected.
Contact the Professionals At Merchant Of Homes
Need help finding the perfect property for you and your partner? At Merchant of Homes, our professional agents have the experience and knowledge to guide you and your partner though the ins and outs of purchasing a home.