Buying Your First Home with a Friend or Sibling: A Quick Guide
January 24, 2025 | Posted by: Sherry Corbitt
Purchasing your first home is tough in today’s market, but co-owning with a friend or family could open new doors. Here’s what you need to know for a smooth and successful experience:
Why Co-Own a Home?
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Increased Buying Power: Two incomes mean a higher budget and down payment.
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Shared Responsibilities: Roommate perks like sharing chores and expenses.
Key Steps to Success
- Be Transparent About Finances: Share credit scores and financial details to ensure trust and compatibility.
- Discuss Commitments Upfront: Talk about life changes (job loss, new relationships, kids, etc.) and plan for scenarios like selling the property or buying out a co-owner's share.
- Set a Budget: Decide on contributions for monthly bills, repairs, and improvements. You may choose to open a joint account to handle shared expenses and build a savings cushion for emergencies.
- Document Everything: Work with a lawyer to create a written agreement covering ownership terms, financial contributions, and exit strategies
- Work With Professionals: Partner with a mortgage broker and lawyer who you trust to communicate the complexities of co-ownership and can guide you both through the process.
Careful planning and clear communication can turn homeownership dreams into reality. If you have any questions please reach out and let’s discuss. My advice is always free, I’d love to hear from you!
