It's wedding season, and love is in the air! Whether you're planning a wedding, or are currently married or in a live-in relationship, you no doubt recognize that shared expenses are an integral part of living together.
A major step towards purchasing a home together, while not at all romantic, is to be brutally honest with each other about your finances before even considering signing on adjacent dotted lines.
The first hurdle you need to jump comes when your potential lender reviews both of your credit scores. If either your or your partner's credit score is subpar, you could find yourselves, as a couple, having trouble securing a mortgage at a good rate.
Next up is a discussion on who pays for what, and what the best way to budget is, in order to cover your common mortgage and household expenses. One survey reported that 82 percent of people who are married or living with a partner share a joint bank account for household expenses like rent or mortgage, utilities, groceries and savings, while 42 percent say they also maintain their own individual accounts for independence, personal spending, convenience and emergencies.*
Buying a home together is most likely your largest monetary commitment as a couple. Take the first step to financial harmony by calling today to discuss your housing requirements, budget and options when it comes time to purchasing your next home together.
* TD Bank Survey. "TD Bank Checking Experience Index." Conducted by Angus Reid Public Opinion. N.p. February 2014. N.d. April 2014.