Pros and Cons of Co-Buying A Home

Dated: 08/03/2019

Views: 105

From our previous blog, How Co-Buying Can Help You Become A Homeowner, we discussed well, as what the title says, how co-buying can help you become a homeowner.

With that being discussed, there are also pros and cons of doing so.

Pros

1. It makes owning a home more affordable because you have someone to split the down payment with.

2. It can help you build equity earlier in life.

3. Help you share and save money on utilities and other maintenance expenses.

4. You have the option to predetermine how the asset will be divided in the event of a split.

5. Income pooling with your co buyer can help you shop in a higher price range than you can normally afford alone.

Cons

1. The interest rate will be determined from whom who have the lowest credit score between the buyers.

2. If your co buyer can't make the share of the payment, the entire burden will fall on the other buyer.

3. If you chose TIC for the title, your co-owner can sell the home without each other's approval.

4. It is not easy to find a real estate attorney to guide you through the process.

5. Sometimes, lender may require the co buyer to be a close relative or a friend of long-standing and needs proof for it.

Before you jump with any decisions, make sure it will make sense. Consider the pros and cons that may apply when you make your purchase. Think carefully about your relationship with your co buyer - can you trust each other with this kind of responsibility?

If you need professional help in doing this and looking to buy a home in Alaska especially in Anchorage, call or text 907 570-6757 or 907-720-4663 so we can help!

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Homes by Vanna

Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....

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