Put Down That Toilet Seat...and other things to consider when purchasing a home with someone

If you’ve ever shopped for a home with your significant other, you know it can be a roller coaster of emotions – sort of like finding the toilet seat up at 3 a.m. when you were "positive" you put it down before bed.

From arguing over paint colors to calculating whose student loans are more intimidating, buying a home together can be a wild ride.

Let's dive into some of the funny and stressful aspects of this adventure.

1) The Credit Score Olympics: Who’s Gonna Bring Home the Gold?

Ah, the credit score – that magical number that determines whether you’re financially worthy of buying a home.

When you’re in a relationship, your credit scores do a cute little waltz together--If one of you has a credit score lower than the other, lenders will use the lower score.

Imagine the credit scores holding hands, skipping through a field of daisies, and then suddenly tripping over a log because one of them wasn't looking where they were going. That’s basically what happens with your credit scores – if one trips, you both go down.

It's a quirky little financial three-legged race.

2) Student Loans: The Cousin Who Never Leaves

Student loans are like that relative who overstays their welcome at family gatherings. Even if they're deferred, they still want a piece of the pie (or, in this case, your buying power).

Lenders have to consider the greater of 0.5% of the outstanding loan balance or the projected minimum payment due...It's like your student loans are constantly reminding you of that one time you thought majoring in underwater basket weaving was a good idea.

3) The Name Game: Who Goes on Title? Who Goes on Loan?

Being on the title of a house says “I own this”, while being on the loan screams, “I’m paying for this!” It’s like the difference between being invited to a party (title) and being the one who has to clean up afterward (loan).

Deciding who gets invited and who has to deal with the mess (or both) is a crucial step in the home-buying process.

Remember, with great property ownership comes great property tax liability....especially if you're on the Title of the home.

4) Tying the Knot: Does It Tangle Your Finances?

If you're married or in a domestic partnership, you might be thinking, "What's yours is mine, right?"

Well, not so fast.

With government FHA/VA/USDA loans, even if your non-purchasing partner isn’t on the loan, their debts will be the uninvited plus-one at the debt-to-income (DTI) ratio party.

It's like suddenly realizing that your partner’s eccentric spending habits might just turn your dream home into a cardboard box by the river.

Bottom Line

Buying a home with a partner can be as exhilarating as a roller coaster ride and as intricate as a waltz. Be prepared to face the funny and stressful hiccups along the way.

Buying a home should be a great experience, but remember, buying a home with another person could cause as much stress as "Who left the toilet seat up again!?"

In the grand scheme of things, let’s just hope the property you both choose has more than one bathroom. For sanity's sake

Thanks so much for reading, and remember...

I Loan It. So You Can Own it.

Until Next Time!

I?left the Oil and Gas Industry after 11 years before deciding to get my Mortgage Originator License and go full time. If you need home financing or have questions about home financing, I'm just a phone call away.

RALPH TAPIA?| Sales Manager & Mortgage Loan Originator NMLS# 1420289 9811 Katy Freeway Suite 1025 Houston, TX 77024 C: 281.881.0612

?[email protected]

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