Buying a home with a friend or family member is an untraditional arrangement, but it can be a great option in some circumstances. It may be the best way to make home ownership a reality for two or more people who could not afford the home on their own. But it can also be a tricky arrangement. Here are some things to do to make this go well.
Discuss How the Financial Arrangement will Go with a Lawyer
The biggest piece that needs to fall into place is how the financial arrangement will go. For instance, will the home be put into one or both people's names? What will happen if one person can't afford to hold up their end of the agreement? Some of these questions are already spelled out, legally, and it's a good idea to know what laws are already in place and what things you need to discuss with your homebuying partner.
Disclose Financial Information
Unless both people have perfect credit and great jobs, there is probably some kind of discrepancy in each person's financial history. This can be a problem when your mortgage loan is based on both people's credit. It's a good idea to disclose financial history information before you even start looking for loans. It may be that one person needs to work on building up more credit before the group can proceed with looking for homes.
Speak with a Realtor About Your Joint Interests
If you are going to go all in on a home with a loved one or a friend, hopefully you have similar tastes in real estate. That makes it easy to find a place that will be good for both of you. Things like the neighborhood to live in, the price range to consider, the number of bedrooms, and also the style of real estate you hope to purchase are all important.
If you differ in any category, speak with a realtor to discuss the biggest issues. They may have great ideas on how you can find a property that caters to diverging needs or acts as a compromise.
Decide Who Gets What
Finally, if you aren't planning on sharing a room, it's important to discuss who will get what when you buy the property. There is probably just one master bedroom. But you could compensate by giving the other person a study or another area to themselves.
For more information, contact companies like Steve Cohn - Keller Williams Realty - Petaluma.Share