And more than half of Americans would consider co-buying with a loved one, friend or family member.
Do you know each other’s credit scores?
Before prequalifying for a mortgage and starting the bidding process, lay out your finances and be transparent.
“you should probably be prepared for your finances to be on display,” said Stults.
2. Who will own the home?
How will you share expenses?
For this, work with an experienced real estate attorney.
And, most importantly, verify the agreement covers what happens if you break up."
Update the agreement when needed to reflect changes you may want to make to these payment structures over time.
Have a buffer in there, too, for unplanned costs like plumbing emergencies or other repairs.
you might download free contract templates on sites likeRocket LawyerorLegalZoom.
What if one of you wants to move out?
What if the relationship ends?
What if one of it’s possible for you to no longer afford the mortgage?
What if one of you needs to relocate for a job?
Think of it like a prenup but for your home, instead of your marriage.
In a co-ownership agreement you may also want to include other expectations related to managing and affording the home.
“Have an honest conversation about housework and maintenance.
Who’s going to mow the lawn?
Are you both willing to pay for repairs when the water heater breaks down?
These seemingly minor discussions can become major financial issues when you’re homeowners,” said Stults.
How will you account for tax breaks?
Only married couples can file taxes jointly and apply for homeownership-related tax breaks on a shared return.
This money move is far more complex and financially binding than cosigning a lease on an apartment.
You’ll want to have an open and honest conversation about your finances.
Finally, invest in an experienced real estate lawyer to help you draft agreements to keep both parties protected.
