Three Things To Ask Your Partner Before Applying For a Home Loan Together

Before you apply for a home loan with your partner, there are a few discussions that you need to have that go a little beyond what you may know already

You’ve found someone you want to spend your life with – the hard part is over, right? Not quite. While you might know each other well, you probably don’t know each other’s complete credit history. Before you buy a property together, there are some important discussions you need to have. Here are three of them:

1. Have They Defaulted on Any Payments?

They might be relatively debt-free now, but has this always been the case? A single late car payment or credit card default can affect your finance application. This doesn’t mean you can’t secure a loan, but you might need to apply to a specialist lender. We can help you find the right lender and craft an application to avoid continuous rejection.

2. Where Did That Savings Balance Come From?

If your partner has savings for a deposit, that’s great, but lenders look at more than just the balance. If they’ve built those savings over time with regular contributions, lenders see this as a positive sign of their ability to make repayments.

However, if the savings are from a redundancy payout, a family gift, or even a lucky bet, they don’t indicate the same level of financial responsibility. While this isn’t a deal-breaker, you may need expert help to present your application in the best light.

3. How Would You Handle Financial Trouble?

It’s crucial to plan for any eventuality, even those that seem unlikely. This discussion isn’t just about having a solid plan for the worst-case scenario; it’s about understanding how your partner would handle difficulty.

If one of you lost your job or faced unexpected bills, would they try to handle it alone, potentially defaulting on the loan? Or would they confront the issue head-on by working with you and your finance broker to create a plan?

Conclusion

Buying a property together is a significant step that requires open and honest conversations about your financial histories and future plans. If you want to discuss these topics in more detail we have many articles in our page, alternatively feel free to reach out to me. We can help you navigate these important discussions and find the best solutions for your needs.