Things to Know Before Buying a House With a Friend
Buying a home with a friend can be an exciting idea. Why wouldn’t you want to live with someone who you get along really well with?
While living with a friend can be a great experience, it can just as easily be a very poor experience. People often find that their best friends aren’t the best roommates.
Whether your friend is messy, irresponsible, inconsiderate, or isn’t able to pay rent, buying a home with a good friend isn’t always as great as it seems.
In order to make sure you and your friend are a good match, you should be sure to ask these questions before buying a house together.
What is Your Current Career and Financial Situation?
It may seem strange to talk to your friend about the details of their career and finances, but it is an absolute necessity if you plan on buying a home together.
Purchasing a home with a friend is a big investment. You want to know how much money your housemate makes, where that money comes from, and if the source of their income is stable.
Knowing each other’s financial situation will help you get a realistic idea of what you can afford and ensure that you don’t end up having to pay more than your share of the mortgage in the future.
How Should Chores be Divided?
You’d like to think that adults who are ready to buy a house could also be trusted to clean up after themselves and maintain your home’s appearance. However, this isn’t always the case.
It’s important to talk to your friend and come to an agreement regarding household chores and maintenance. Who is responsible for what?
This might not seem particularly important before buying a home. However, it can be very difficult to live with someone who expects you to do all the housework on your own.
What Are Your Wants and Needs?
You and your friend have likely already talked about the basic factors and amenities you’re looking for in your new home.
But it’s important to take it a step further and create a checklist for each of your wants and needs. This should include everything from location, amenities, size, architecture style, and more.
If you haven’t already talked through these details, you’ll be disappointed when you find the house of your dreams and your friend isn’t on board.
Have You Been Pre-Approved for a Mortgage?
Have you and your friend been pre-approved for a mortgage?
You and your friend can start the buying process by independently getting pre-approved for a mortgage and combining your approval amounts to get a good idea of what you can afford. This can also help you understand what your monthly payments might be.
Of course, you’ll typically have to get approved as co-borrowers on a single mortgage in the future, but pre-approval is a great first step.
What Happens If One of You Moves Out?
Lastly, what happens if one of you decides to move out?
It’s important to come to an agreement on what to do if either you or your friend decide to move on. Buying a house is a long-term investment, so you can’t always be sure that you and your friend are in it for the long haul.
It’s important to discuss this now so that you aren’t in a rush to decide what to do in case one of you makes the decision to leave.
By following these tips, you can buy a home with your friend with more confidence and clarity.