Summer Kim-Davis

Mortgage Advisor Dallas Texas

  • About
    • Bio
    • Privacy Policy
    • Recovery Fund Notice
  • Resources
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
  • Testimonials
  • Contact
  • IKON Mortgage
  • Pros for Paws

The Pros and Cons of ‘Mortgage Before Marriage’ for Young Couples

January 4, 2017 by Summer Kim-Davis Leave a Comment

The Pros and Cons of There was a time when a higher percentage of people were married before they committed to buying a home together, but it’s a lot more common to co-habit and invest in a home together. If you’re considering the commitment of a mortgage without being married, here are some things to be aware of before you start searching the market.

Relationship Status Won’t Affect Your Rates

It might seem like there are greater risks involved if two individuals purchasing a property are not legally bound, but it actually makes no difference to the mortgage lender. If two people are buying a home together, the lender is going to be assessing their credibility based on their individual credit reports and financial history, not on their relationship to each other. While it may seem like co-habiting will have an impact, the proof – as far as lenders are concerned – is in the numbers.

What’s Your Credit History?

Most people are aware of their credit history, whether they’ve had financial hiccups in the past or are still paying off a significant amount of debt. However, it is more difficult for some to know the financial background of their partner, and this can be more common when it comes to co-habiting. Because the lender will be looking at both credit scores, if you or your partner have had financial issues in the past, it can have an adverse impact on your application. While you may have a nearly perfect credit history, if your partner does not this can make mortgage approval more difficult.

In The Event Of Separation

Home ownership can involve significant hurdles after a divorce, but there will still be some legal and financial issues to wade through if you’ve never been married. Since it’s likely that you won’t want to continue to co-habit, there’s the possibility that one party will have to buy the other out, which can be a sizeable financial burden. While this type of situation may never come to fruition, it’s important to be aware of what might occur so you can be prepared.

There can be a lot of complexities involved in co-habiting whether you’re married or not, but it’s important to have an awareness of your partner’s financial history and be prepared for financial hurdles. If you’re currently on the market for a new home, contact one of our mortgage professionals for more information.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage

Leave a Reply Cancel reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Summer Kim-Davis

Contact Summer


Call (214) 843-5837
summer@ikonmortgage.com
NMLS #404751
Click Here to Apply Now →
Ikon Mortgage

Get A Free Rate Quote!

  • This field is for validation purposes and should be left unchanged.

Connect with Me!

Awards

Calculate Mortgage Payments

Mortgage Calculator

Recent Posts

  • Buying a Home Really a Good Idea? Buy vs. Rent
  • Buying With A New Job- Ask Mortgage Expert
  • Offsetting Influences
  • The Pros and Cons of ‘Mortgage Before Marriage’ for Young Couples
  • 5 Major Red Flags to Watch for When You’re Touring an Open House

About IKON Mortgage

IKON Mortgage Inc. is a residential mortgage company. IKON stands for Integrity, Knowledge of the market and products, Outstanding service, and New and better ways of helping our cliental. The company was founded with the core value of giving, honesty, efficiency, humanity, and doing business with integrity.
Visit IKON Mortgage →

Our Location

IKON Mortgage, Inc.
NMLS 1443080.

17330 Preston Road
Suite 200D
Dallas, TX 75252

Equal Housing Logo

Copyright © 2019 · Powered by MySMARTblog