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Old 01-25-09, 09:17 AM   #1
timmyquest
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Buying a home with a significant other

Without getting into numbers...

I'm not married to my girlfriend but we're looking at moving into a place with each other and buying a home isn't entirely out of the question given the housing market and the fact that we don't have one to get rid of

The problem is that i have student loans and given my income and my monthly debt i'm not convinced that a bank would give me a loan, understandably. However with our combined income, we could easily afford something in the 150-170 range which is more than doable where we live.

Do you have to be married for the bank to consider both incomes? Is there a way to buy a house together and not be married?
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Old 01-25-09, 09:18 AM   #2
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Do you have 20% to put down? Talk to a mortgage broker. You'll get better answers.
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Old 01-25-09, 09:20 AM   #3
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Do you have 20% to put down?
More than doable by the time we would be doing it

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Talk to a mortgage broker. You'll get better answers.
Yeah, i guess you're right. But it's Sunday.
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Old 01-25-09, 09:23 AM   #4
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Hmmm
http://www.mortgagenewsdaily.com/125...g_Marriage.asp
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Old 01-25-09, 09:30 AM   #5
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taking on a mortgage now would be the ultimate in stupidity, for anyone

deflationary depression is a really really bad time to take on more debt
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Old 01-25-09, 09:52 AM   #6
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taking on a mortgage now would be the ultimate in stupidity, for anyone

deflationary depression is a really really bad time to take on more debt
I work for an NPO where our finances are years ahead of today. I feel pretty secure in my position. Does that change anything for you?
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Old 01-25-09, 09:55 AM   #7
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If you've got more than 20% to put down, and you both have stable jobs, it likely won't be a problem. The housing market right now is in a great spot for buying. If I had the available cash, I'd buy a couple of houses just as investment property's and rent them out.
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Old 01-25-09, 09:55 AM   #8
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If you both have secure jobs/sources of income and you know you will be living in the house for at least 5 years (and maybe 7-10 years) then now is a great time to buy (or sometime in the next few months). Nobody is able to predict the bottom of the market so you have to accept that it could go down for another 6, 12, 18, 24 months. The rises after the bottom are not likely to be huge so it could take a while for the house to be worth what you pay now. Hence the reason you potentially need to stay in the house a longtime. That's your call as far as the seriousness of your relationship. If you have 20% down and can both prove your income, then you will not have any problems getting a mortgage.
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Old 01-25-09, 10:00 AM   #9
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I work for an NPO where our finances are years ahead of today. I feel pretty secure in my position. Does that change anything for you?
nope

Your money tomorrow is worth more than today, the opposite of what was going on for the rest of your life and most others for that matter. By taking on a loan now you very easily could end up paying quite a bit extra for it in real purchasing power. I would at the very least wait and see if the banking system and govt will survive, cause they might not.
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Old 01-25-09, 10:01 AM   #10
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taking on a mortgage now would be the ultimate in stupidity, for anyone

deflationary depression is a really really bad time to take on more debt
For investment purposes, it depends on whether you think home prices are at or near the bottom of the cycle or not. Admittedly, it is a gamble.

However, in my opinion, the primary reason for buying a home shouldn't be to make money, but to have a place for your own as a long term residence. If you can afford the home you want to be in for long term, then you should definitely consider it. There is always the risk that if you wait you could get it for cheaper... But, frankly, if you look at it as your long term home, why wait and pay for your landlord's property any longer than you have to, unless you are confident of even lower prices?
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Old 01-25-09, 10:03 AM   #11
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Good stuff guys...thanks for the input.
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Old 01-25-09, 10:04 AM   #12
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A coupe of pointers, from another aspect of the problem: Long term planning for eventualities....

You need to stipulate in advance and have in place a mechanism for one or the other to be able to buy out the SO partner if you should split up, as well as an understanding that both of you are on the hook for payments until the property is liquidates if you do happen to go splitsville (and I hope you don't).

Make arrangements for specific survivorship issues as well, in advance, since both sides of the 2 families will be able to interfere with the surviving SO, in the event of the mortality of the other...have it on paper. Make sure she understands it isn't a trust issue, but a legal one to maximize both of your protection. If it's all laid out, covering various possible eventualities, it'll save both of you many legal issues, and a whole bunch of money and time in court later.
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Old 01-25-09, 10:05 AM   #13
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For investment purposes, it depends on whether you think home prices are at or near the bottom of the cycle or not. Admittedly, it is a gamble.

However, in my opinion, the primary reason for buying a home shouldn't be to make money, but to have a place for your own as a long term residence. If you can afford the home you want to be in for long term, then you should definitely consider it. There is always the risk that if you wait you could get it for cheaper... But, frankly, if you look at it as your long term home, why wait and pay for your landlord's property any longer than you have to unless you are confident of even lower prices?
we have a long way to go downward yet, not even a guess at this point, just basic math

depending on location and market, renting right now can easily end up 2-3 times cheaper
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Old 01-25-09, 10:18 AM   #14
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Without getting into numbers...

I'm not married to my girlfriend but we're looking at moving into a place with each other and buying a home isn't entirely out of the question given the housing market and the fact that we don't have one to get rid of

The problem is that i have student loans and given my income and my monthly debt i'm not convinced that a bank would give me a loan, understandably. However with our combined income, we could easily afford something in the 150-170 range which is more than doable where we live.

Do you have to be married for the bank to consider both incomes? Is there a way to buy a house together and not be married?


You have not lived together and you're thinking about buying a house?!? People see each other in a whole new light when they live together. Better to .rent something together now and save your down payment for later. When you do decide to buy, pony up the extra $$ for an attorney to look over the contract, it could save you some serious heartache later.
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Old 01-25-09, 10:31 AM   #15
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no1mad's advice is bang on (no pun intended). Try living together first to see how that goes. The markets will be low for a while yet.

If you're dead set on buying a place, at least in Canada, you don't have to be married. However you both will be put on the mortgage. Do an emergency budget up to see if you could still make the payments if one of you guys lost your job for an extended period of time. Some supposed "experts" are predicting a long term recession in the US, which will affect jobs ... even for some of those that think their jobs are safe. You never know.
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Old 01-25-09, 10:39 AM   #16
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You have not lived together and you're thinking about buying a house?!? People see each other in a whole new light when they live together. Better to .rent something together now and save your down payment for later. When you do decide to buy, pony up the extra $$ for an attorney to look over the contract, it could save you some serious heartache later.
We live together.
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Old 01-25-09, 10:41 AM   #17
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We live together.
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Old 01-25-09, 10:43 AM   #18
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Old 01-25-09, 11:10 AM   #19
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We live together.
In that case, carry on then!

But do take Stormcrowe's advice.
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Old 01-25-09, 05:50 PM   #20
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A coupe of pointers, from another aspect of the problem: Long term planning for eventualities....

You need to stipulate in advance and have in place a mechanism for one or the other to be able to buy out the SO partner if you should split up, as well as an understanding that both of you are on the hook for payments until the property is liquidates if you do happen to go splitsville (and I hope you don't).

Make arrangements for specific survivorship issues as well, in advance, since both sides of the 2 families will be able to interfere with the surviving SO, in the event of the mortality of the other...have it on paper. Make sure she understands it isn't a trust issue, but a legal one to maximize both of your protection. If it's all laid out, covering various possible eventualities, it'll save both of you many legal issues, and a whole bunch of money and time in court later.
+ infinity.

If your relationship does somehow go sour you want to end it as friends that will still talk to each other. You don't want to hate each other and be at each others throats because you haven't sorted out the legal issues first.

Anthony
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Old 01-25-09, 06:12 PM   #21
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nope

Your money tomorrow is worth more than today, the opposite of what was going on for the rest of your life and most others for that matter. By taking on a loan now you very easily could end up paying quite a bit extra for it in real purchasing power. I would at the very least wait and see if the banking system and govt will survive, cause they might not.
Hmm... but if the banking system doesn't survive, he'll have a piece of land with a home and not owe anyone! And we'll be a on barter system then, and he could rent out a room for labor and/or food!
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Old 01-25-09, 06:47 PM   #22
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We live together.
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In that case, carry on then!

But do take Stormcrowe's advice.
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You have no idea
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Old 01-25-09, 07:12 PM   #23
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My Dad & step-mom bought their house together a couple of years before they got married. From what I remember, the only issue they had was finding a bank willing to write a loan for a less-than-standard term, or a standard-length mortgage with no early pay-off penalty, since they were planning on paying it off in 5-7 years.
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Old 01-25-09, 07:44 PM   #24
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+1 billion on what Tom Stormcrowe said.

As for your debt, student loan and car loans are not revolving credit; they have (more or less) a definite time-line for pay-off, thus are considered "good credit". The amount you owe in these loans is figured into how-much-house you can afford (salary-owed=what you can afford). Revolving credit, i.e., credit cards, will bite you. Get rid of them. They will show up on your credit history, though; not sure how your credit score will be affected if they are closed out.

Yes, properties are available, but, loan agencies are not willing to take the risk like they have in the past 8 years. You will have to get "pre-approved" and this will tell you if they will lend you money, how much they will lend you, and what type of loan you qualify for (fixed, etc).

I disagree with the others on the 20%; I would still consider buying a house if you don't have it, which would be $30k to $34K for the prices you listed. My hunch is probably don't have your share of that much cash; if you did, it might be gone towards student loans (???) by now. You will have to pay PMI, which stands for private mortgage insurance, and is insurance that the bank makes you pay until you have paid-down the loan to 80% of its value. Thus, if your property increases in value, you will hit that 80% sooner. If your property value decreases...oy!

However, but, it still might be cheaper and provide a better investment than renting. I wouldn't be in my house if I had to put down 20%. But then again, I bought when property values were increasing in value. There's a lot of "it depends" on what you feel comfortable with. And, if you think you could save the 20% in the next year, then you might want to consider waiting a year.

There are calculators all over the internet that you can use to get an idea of what you're getting yourself into. I highly recommend that you play with them before calling a loan person. The exercise will get your familiar with terminology and force you to get your paperwork together. I like the ones at: http://www.bankrate.com/brm/mortgage-calculator.asp

Also, credit unions are great sources for free classes on buying a home, and the public library should have many "house buying for first time buyers". Real estate agencies also offer them, but often it's to "get you into their door".

Have fun!
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Old 01-25-09, 08:06 PM   #25
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20% down was not a requirement for me when I was considering a home purchase. However, I would have incurred mortgage insurance for a certain term (first 2 yrs) until it equaled 20% down.

happy mortage hunting.
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