Wow! You’ve taken the plunge- decided to buy a property with your soon-to-be a partner. Well, this is an exciting time as it is one of the most satisfying purchases you can make and the experience of a lifetime. But before investing jointly in a property, every engaged couple should follow these tips:
Be transparent with your partner
Before buying a home, have an honest conversation with your significant other about your financial history and you theirs, before starting the application process for a home loan. It is possible to get married without knowing your partner’s financial status, but when it comes to qualifying for a mortgage, your salary, credit card debt should be on the table. Discuss it all with your partner so that you can get the best rates for your bond.
Know about the ownership rights
Before investing jointly in a property, you and your partner need to be completely clear about the ownership rights like who will own the house. In case, if you are buying a home on the wife’s name then it will help you in getting a loan on low-interest rates and the property will cost you less as compared to buying it on the husband’s name.
Keep track of your finances
Once you decided to co-own a property with significant other, it’s important to keep detailed records of your finances. Any partnership agreement will go waste if you do not keep track of who has spent and paid what along the way. It is always important to be transparent about your financial situation with your partner as it helps in the process of applying for a home loan.
Fix a budget
When you purchase a house, you want to furnish it fully and make it liveable, unless you have opted for a fully furnished, ready-to-move-in apartment. Therefore, it is important to fix a budget for the decoration of your new house. Discuss with your partner how can you divide the costs between the two of you.
Sign an Agreement
This is important for any investment as every investment requires safety. Therefore, it is important to sign an agreement just to safeguard ownership rights in case if the relationship end or one of the partners passes away. You can contact a real estate agent to help you draw up a co-ownership agreement. This document should mention whose name will be on the deed or lease and who will be paying for what. Having this written agreement will help in resolving financial issues and EMI disbursal on regular basis.