How to Buy Your First House with Your Significant Other

While for many years it was most common for a couple to purchase a home together after they get legally married, today there are many couples who choose to say “I do” to a home before a legal marriage. While buying a home outside of marriage is super exciting and a very special moment, it also comes with some financial risks that you should be aware of before taking the plunge. Here are some things you should consider before purchasing a home with your significant other:

• Make sure you both share your financial information. It is important that in purchasing a home, you are both honest in sharing where you are financially, and what will make the most sense in terms of a monthly mortgage, down payment, and closing costs. Make sure that you share salaries, debt as well as your credit scores.
• Consider who will take the title of the home. There are a few different options when it comes to taking the title of the home, including one person holding the title, both people holding as joint tenants, or sharing one title as tenants in common.
• Put your agreement in writing. For anything financially focused, it is important if you are not married and/or sharing assets that you get everything in writing in terms of who will be owning what payments, including mortgage and anything utility related.