What to Do Before Buying a Home Together

Buying a home together with someone can be a smart financial decision. You build equity overtime, have lower monthly bills, and a nicer home you otherwise wouldn’t be able to afford on your own.

However, home-owning is a complicated process. Adding a relationship into the mix – romantic or platonic – creates even more complexity. Whether it’s a family member, significant other, or your closest friend, it’s extremely important to ask these questions first.

Questions to Consider Before Buying a Home Together

Moving in with someone can be both an exciting and overwhelming endeavor. It’s best to sit down face-to-face and plan the logistics of your big move. While it may be uncomfortable at first, confronting the following issues will give you both peace of mind and may resolve any potential concerns down the line.

Are Your Lifestyles Compatible?

It may seem like a match made in heaven: you both love Italian food and watching football on Saturday nights. What more could you possibly ask for?

Before you make any major financial decisions like buying a home together, you’re going to have to get down to the nitty-gritty details of how you two would really live together. For example, what time do you both go to bed? Are you a night owl or an early bird? Do you like having friends over every night of the week? If so, would your roommate appreciate the constant company? Owning a home with someone isn’t the same as renting together. It’s a much bigger commitment that won’t end after just one year. Make sure you’re both being honest about your lifestyles. It’ll save you from some major headaches down the road.

How Do You Plan to Finance the Property?

Sharing monetary information is key before you buy. Be sure to sit down with your potential roommate and lay out all of your finances on the proverbial table, including credit reports.

If you plan to apply for a mortgage, be sure to set up an appointment with a loan representative. They will be able to look at each of your financial situations to see which one of you should apply for the loan. Once this has been determined, you’ll need to come together and decide which person is responsible for which payment.

What If Things Go Awry?

It may be difficult to face the thought of something going wrong. But it’s extremely important to discuss a game plan in case the two of you can’t work things out. If you’re married, it’s much easier to divide assets in such an event. However, the same can’t be said about roommates who fall outside of those parameters. Regardless of your relationship, the best thing you both can do after discussing this topic is to find a real estate attorney. They’ll be able to draw up a contract to keep everyone’s mind at ease.

It’s Exciting to Buy a Home Together – But It Takes Hard Work

While it may be scary to take such a huge step, buying a home with someone can be a lucrative and fun adventure. If you’re able to honestly answer these critical questions together, you’ll be well on your way to a much more confident house search and living situation.