7 Tips for Purchasing a Home with your Significant Other

Buying a home with your partner is a huge step that will set the foundation of your relationship for years to come. It signifies commitment, trust and a promise to stick it out for the foreseeable future, 15 or 30 year mortgage perhaps? Here are 7 tips we believe will help you in this big decision.

Dust Off Your Finances

Before embarking on the journey of house hunting with your partner, it's crucial to prioritize organizing your finances. This step is best taken sooner rather than later, requiring full transparency and honesty about your financial standing. Lenders will conduct credit checks on both partners during the home-buying process, exposing any unresolved debt. Notably, lenders typically consider the lower credit score between partners, highlighting the importance of improving any low scores beforehand. Moreover, it's essential to openly discuss savings and determine how much can be allocated for the down payment and closing costs, while ensuring a safety cushion is left untouched to mitigate future financial stress from mortgage repayments and other expenses post-move.

Get Pre-Approved

After ensuring both partners have boosted their credit scores and amassed sufficient funds for a down payment, closing costs, and a safety cushion, obtaining pre-approval for a mortgage is highly recommended. This step enables setting a realistic budget for house hunting, preventing the frustration of making offers on properties beyond financial reach. Mortgage pre-approval streamlines the search process by focusing solely on affordable homes and strengthens negotiating power when making offers.

Be On The Same Page

Even in harmonious relationships, it's improbable for partners to desire the exact same features in a home. However, a resilient relationship thrives on compromise while respecting individual preferences. Prior to commencing house hunting, it's beneficial for both partners to articulate their desires without influencing each other, ideally through individual lists of needs and wants encompassing aspects like location, bedroom and bathroom count, floor plans, and property condition. Upon comparing lists, focusing on shared preferences fosters a solid foundation. Diverging points warrant careful discussion to reach compromises satisfying both parties. Once equilibrium is achieved in addressing each other's needs and wants, the stage is set for house hunting, with a commitment to honoring discussed criteria and refraining from pressuring partners into unsuitable choices.

Stay Logical

House hunting, especially with two individuals involved, can be emotionally charged, necessitating a focus on facts and realistic financial boundaries to prevent tensions from escalating. It's crucial to acknowledge that falling in love with a property outside your budget is futile. Moreover, discussing the possibility of a breakup and establishing a clear plan beforehand is prudent, despite the commitment implied by purchasing a home together. A transparent conversation should outline each partner's contributions to the down payment, respective equity shares, financial responsibilities regarding bills and mortgage repayments, and a predetermined process in case of a breakup. Consideration of a legally binding agreement to formalize these arrangements can provide added security and clarity for both parties.

Work With a Professional

Engaging a real estate agent is highly advantageous for anyone in the process of buying a home, but for couples, their services offer additional benefits. Beyond their industry expertise and local market knowledge, agents can act as mediators in case of disagreements, ensuring both parties remain satisfied. Their impartial perspective, devoid of emotional attachment, proves invaluable in navigating challenging situations. Furthermore, agents facilitate the transfer of responsibilities, alleviating stress significantly throughout the homebuying journey.

Honesty as the Best Policy

In the context of purchasing a home together, honesty and trust form the bedrock of a strong relationship, emphasizing the importance of transparent communication. While openly discussing financial situations prevents last-minute rejections from lenders, it's equally vital to express both likes and dislikes honestly. Pretending to share identical preferences is common among partners but can lead to dissatisfaction in the long run. It's imperative to remember that the purchased property will be shared by both partners, making compromises solely to appease one another unsustainable and likely to result in future issues.

Prioritize Your Relationship

If you've reached the stage of considering buying a home with your partner, chances are your relationship is in a positive state. It's crucial not to jeopardize this by fixating on finding the perfect home. Properties are constantly available, and it's alright to step back if disagreements arise and progress stalls. Taking a break from house hunting can be beneficial. Allocate a couple of weeks to not discussing it at all, using this time to prioritize your relationship and cultivate a happier dynamic. With a refreshed perspective, you'll likely find that things flow more smoothly, and you'll be better equipped to resume the search for your ideal home.