Over my time in real estate I have met many couples taking the big step of purchasing a home together. Normal right? This in itself isn’t that life changing, unless of course you have never, ever, EVER lived together before. If that’s the case there are a few things you need to consider.
Having an open and honest conversation about finances is paramount if you are going to life under the same roof. Talk openly about salaries, debt and financial planning and goals will effectively bring you closer together as a couple and make things a lot easier looking forward.
How will the mortgage get split? Utility bills? Insurance? Groceries? It may not be as easy as 50/50 if both people don’t earn the same amount. This is where the conversation about finances comes into play and usually based on that you can determine the percentage each will contribute.
Who Does What
It may not seem like a big deal, but determining who will take the time to actually make the payments for mortgage or utilities is clutch. If these are missed regularly it can muddy up both peoples credit scores.
Joint Bank Account
Most couples I have dealt with typically have joint bank accounts. This allows either party to flow cash from their accounts to a main account. Having a single location to monitor all of the household expenses allows for a better understanding of cash flow and living costs.
Who’s Gets What
When furnishing your home, keeping major purchases separate and itemized will help keep things clean in the event that things don’t work out. Of course you’re furnishing your place together so you may find you need to invest in some essentials. Decide in advance who pays for the 3D TV and who gets to keep it if things don’t work out.
A person can never make assumptions in real estate or in love. Couples should go over every financial detail together and make a plan. Taking the time to plan for better or for worse can help you cohabitate headache free for years to come!
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