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 (or a significant chunk of it, at least) – the hard part is over, right? Wrong. You know each other well enough to know whether or not you each blow the budget every month, but you probably don’t know each other’s complete credit history. So, before you buy a property together, there are plenty of discussions you need to have. Here are three of them.
Have they defaulted on any payments?
He or she might be relatively debt free now, but has this always been the case? One bad mark on a credit file, such as a late car payment or a default on a credit card, will change the approach you need to take when applying for finance.It doesn’t mean you can’t secure finance, but it may mean you need to apply to a specialist lender for an alt-doc loan. Your Mortgage Finance Broker can help you find the right lender and craft an application to avoid the heartbreak of continual rejection.
That savings balance, where has it come from?