Buying a House When Unmarried? Consider These Things.

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Buying a house when unmarried? Consider these things: Via ForbesAdvisor

. Most financial institutions prefer that borrowers not spend more than 28% of their pretax income on housing expenses. When deciding who should apply as the lead borrower, see which partner has the higher income and balance that against other factors. If your lender allows it, consider applying as co-borrowers so both of your incomes are considered.. Beyond a homebuyer’s income, lenders like to see stable employment history.

When deciding how to handle the title, keep in mind that each approach comes with its own tax implications. For that reason, we recommend consulting with a tax advisor or real estate attorney before making a decision. For example, if you and your former partner own the home as tenants in common, either of you can force the sale of the property without consent of the other. However, if only one partner is on the deed, the other may not have any legal rights.

 

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