Absolutely! This may seem like an unusual and difficult question, but there are various factors involved when purchasing a home without your spouse. Let’s take Kissimmee, there are many variants to consider when you are searching for homes for sale in Kissimmee. Will it raise or lower your taxes? If it does indeed lower taxes; it can affect your mortgage and retirement plans. More savings for you!
Buying a house without your spouse can actually end up benefiting you. Mortgage lenders cannot discriminate against you buying a home with or without your partner due to the Equal Credit Opportunity Act (ECOA). Buying a home alone can save you A LOT of money, hassle and time. Speaking of saving a lot of money, make sure to get the help of a home value estimator. When you are looking to purchase a house in your name only you are able to protect your interests, protect your assets and receive a quality mortgage.
First Steps to Take
If you and your spouse are looking to invest in a new home together, consider some financial planning beforehand:
• Make sure to compare credit scores.
• Determine a budget that will work for the both of you.
• Consider opening up a joint bank account to put savings into.
Although you both will be living in the home together, only one would ultimately “take title” to the property. The title is what declares ownership, this person’s name will be on the deed. This also enables the owner to control what happens to the property in a death. If you have sole ownership, you are able to leave the property to whomever you want.
Why would I buy a house without my spouse?
Buying a home in Florida and being married do not correlate to one another. So why would you want to buy a house without your spouse? There are a couple of reasons as to why you should consider leaving your spouse’s name off the mortgage.
• Preserve Assets
• Credit Scores
• Income Levels
Your home is an asset, which can be confiscated in some extreme cases. If your spouse has defaulted student loans, has unpaid taxes or unpaid judgements, he/she could potentially be susceptible for asset confiscation. Buying a home in your name only can protect you against creditors.
Low Credit Score
Regrettably, mortgage companies won’t use the higher credit score between you two, they will most likely consider the lowest score. If this is the case, your spouse could be holding you back from the best possible rate. You might want to leave your spouse off the mortgage on this one, unless your spouse’s income is needed to qualify for a proper loan.
When filling out a mortgage application, you will be asked to prove your source of income. In most cases, this means providing W-2s and paystubs. If your spouse doesn’t meet the requirement or hasn’t had a stable form of employment for the past two years, this can create difficulty qualifying for a loan. If your spouse lacks income but have debt, this can throw off your debt-to-income ratio, which ultimately can prevent you from qualifying.
Joint Bank Accounts
If you have a joint bank account set up in your name and your spouse’s name and you are choosing to buy property without him/her, you can still use the account. This will not hold as a problem that the account is owned by someone else who is not on the loan. As long as your name is on the account and it’s your money, using a joint account should not create any issues.
There are many reasons to consider not adding your spouse’s name to the mortgage or title of a property. It is totally acceptable to buy a home without your spouse. Whether you decide to fly solo or looking to purchase a home with your significant other, make sure to check all the financial situations ahead of time. At Florida Realty Marketplace, we are here to help you find the best mortgage and financial options to buy your new home. Contact us today!