Pros and Cons of Getting a Mortgage With a Significant Other

If you are a young adult living with a significant other in a long-term relationship, you and your partner may, at some point, consider buying a home together. This is a big decision that could have financial ramifications for both of you for years to come. Therefore, be sure to consider both the pros and the cons before taking out a mortgage with a significant other.

The Pros

You may be able to afford more. Two incomes may help you qualify for a larger mortgage than either of you could afford on your own. As a result, you may be able to purchase more house than you could otherwise.

Buying a home together is an indication of your commitment to each other and to your future together.

The process of buying a home together can tell you a lot about the strengths of your relationship with your significant other and how well the two of you communicate and compromise when it comes to making major decisions. If it goes well, it can bring you closer together.

The Cons

The process of selecting and buying a home together can reveal the weaknesses in your relationship with your significant other, especially when it comes to communication, compromise and how you each handle and view money, and, as a result, there is a risk that it could drive you apart rather than bringing you together.

Having a mortgage together could put a strain on your relationship , especially if you and your significant other have different styles when it comes to money or if one of you has to pay more, which can cause resentment.

You could be on the hook for the full cost of the monthly payments if your relationship doesn't last and your significant other leaves and stops paying his share of the mortgage. In fact, since you are on the mortgage, you are liable for the full mortgage payments if your significant other stops contributing financially for whatever reason.

You might be forced to sell the home if you and your significant other break up, whether you want to or not and whether the real estate market where your home is located is favorable or not.

Your credit score could suffer if your significant other is not able to pay his share of the mortgage.

You could face financial difficulties if you are not realistic about the actual cost of home ownership. Mortgage payments and property taxes are just some of the expenses of owning a home. Others include the cost of maintenance and repair, yard work and landscaping, and utility bills.

While you can't eliminate all the risks if you decide to get a mortgage with your significant other, you can minimize them by paying attention to signs of trouble when looking for and choosing a home and by discussing financial issues ahead of time. Among other things, you should agree on who will pay what towards the down payment, closing costs, mortgage payments and property taxes and how contributions to the mortgage might change in the future, for example, if one of you gets a big raise, takes a better job, or is laid off. Also, don't overlook maintenance, repair and housekeeping (inside and out) issues, since caring for a home is more demanding than living in a rented apartment.

Sources:

www.mortgageloanplace.com, Purchasing a Home with a Significant Other '" MLP Mortgage, Refinance and FHA Loans

www.life123.com, What to Consider before You Cosign a Mortgage Loan with a Significant Other

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