With home prices on the rise, young adults are experiencing struggles paying for a home with just their own income. As a result, cohabiting is becoming more common, in which unmarried partners –or possibly just friends — choose to pool their money and purchase a home together. Some may be concerned that this can cause some financial headaches. But really, all you need to do is make sure you know your cohabiting partners well.
Marriage certainly confers some legal and financial benefits. As far as purchasing a house, though, the financial side of things doesn’t actually care whether you’re married or not. Relationship status is not a factor in mortgage rates, as every co-purchaser’s financial history is considered separately, whether they are married or not. However, this also means that if you don’t really know a partner’s financial history too well, you may be in for an unwelcome surprise. It’s also important to note that even after successfully purchasing the home, conflicts between co-owners can result in situations not too dissimilar to divorce proceedings, even if you aren’t married.