Is it a good idea to buy a home as a couple?
Buying a property is always an excellent idea. A home is an asset that will be part of the patrimony of the members of the couple, regardless of whether they are united in marriage.
Living with the person you love is one of those great steps in anyone’s life. Applying for a mortgage loan to buy a home as a couple increases the chances that the bank will grant the loan and that the amount of the financing will be greater, since the income of both is considered.
In the same way, if they prefer to do it in cash, the same thing happens. They can get the ideal property because they have more capital, by adding the income and savings of both. However, like everything in life, there are pros and cons in making this decision together.
Perhaps at the time of our parents or grandparents there were no major doubts: they were getting married and almost immediately the house was bought for the couple and future family. Today, when not all couples legalize their union with civil marriage, doubts may arise whether it will be a good idea to buy a home as a couple or it will be better to do it alone.
The recommendations that we give you below are essential for the process to flow as smoothly as possible and that the dream of living together is backed by good decisions in financial terms:
Determine how much money you both have for the down payment. If they can contribute more than the minimum fee that the financial institution will ask of them, it will be much better, because then the monthly payments will be much more manageable.
Create a detailed budget for income and expenses. The monthly payment must not exceed 30% of the money that is available after paying all your monthly commitments.
Remember that in addition to paying the initial fee, you must have extra money for the closing costs of the business; as well as the expenses corresponding to the installation in the new home.
If you are going to buy a flat, many construction companies have agreements with banking institutions to facilitate the acquisition. However, compare the conditions of this financing with the traditional mortgage loans of that or other banks.
When buying a home you not only invest in a property with certain characteristics, but also include the location, the community where it is located, access to fundamental services, external variables that can revalue your property or have the opposite effect.
Although everything is love and illusion when buying a home as a couple, if they are not married, it is important that they review the legal considerations in force in their country, in the event that the union is dissolved; as they will have to make decisions about the ownership of the property.
However, it is an unquestionable fact that both signed a contract with the bank, therefore both are responsible with that institution until the debt is settled. That is, you will have to continue paying by both parties until everything is paid.