Advice for First Time Home Buyers Looking for a Joint Mortgage

A joint mortgage is a common option for first time home buyers. When you are buying a house for the first time, you will most likely need all of the help you can get financially. When you have never purchased a home before, it can be exciting and a little intimidating at the same time and having a joint owner can help ease the financial burden. Here is a bit of advice for first time home buyers looking for a joint mortgage.

Do Not Overextend

Using a joint mortgage can be a great way to get approved for a loan. When you are involved in a joint mortgage, your chances of approval are increased. You could potentially get a bigger house than you could by yourself. When you apply for a joint mortgage, the bank is going to look at both parties information. Therefore, they are going to consider the income from you and the income from your partner. They are going to look at the credit history of you and the credit information of your partner. Therefore, if you do not have much income or great credit, your partner in the joint mortgage can make up for it. 

It can become easier to become overextend with a joint mortgage than with a normal loan. You can get approved for a larger loan amount and get into debt financial trouble. Your monthly payment will be much larger because they expect both incomes to produce. When you sign up for a mortgage, you are usually committing yourself for 30 years. Therefore, having a large payment for that long can be difficult. A lot of things can happen over the course of 30 years. Your partner could lose their income and then you would be financially obligated to make the entire payment by yourself. This means that you should try and keep the payment as reasonable as possible.

Plan Ahead

When you are looking to buy your first home with a joint mortgage, you need to keep in mind that the future can change. Although everything might be great now, you never know what the future could bring. A joint mortgage is a very big commitment not only to the lender, but to your relationship as well. When you get into a joint mortgage, you are banking that your relationship is going to be intact for the next 30 years or until the property is sold. 

Relationships deteriorate every day. Therefore, you need to understand that there is a possibility, no matter how remote it seems now, that your relationship could deteriorate. If one of you decides to leave, the other person in the joint mortgage is still financially obligated for the entire amount of the mortgage. Therefore, you need to try and save up as much as you can in the meantime. A joint mortgage is a big financial responsibility. Just make sure that you are ready for it.