Combined Living Might Be Your Answer to Home Ownership
It may not be commonplace, but Sonya Davis, Sales manager David James Homes Lynchburg office has noticed possibly a trend emerging in her market area; people, not necessarily connected by marriage purchasing homes together. After doing a little research this trend isn’t as rare as you might think.
Blended families, as in the Brady Bunch have long combined into one household but as it turns out people from all walks of life are buying homes together. This includes sets of couples, best friends and relatives. Sonya reports that she has two best friends that have lost spouses have purchased a home together as well as a mother and a daughter.
The combined living scenario could be a good fit for many households but preparation is key to making it work. The first thing that needs to be achieved is a written contract, The contract is necessary to document the financial agreement regarding the payment of mortgage and utilities, as well as how to deal with contingencies as in what happens if one of the occupants dies or is unable to pay.
Shared Monthly Expenses
The biggest advantage to combined purchasing and living arrangements is monthly expenses are shared. As the owner of the property you are obligated to meet your monthly mortgage as well as keep the property clean and well maintained. Sharing that expense makes it much easier to bear, as well it can help you in your personal finances in your ability to save for the future.
Getting a Mortgage
Getting a qualified for a home mortgage might also work to your advantage. Your lender will require a credit score no less than 680. When you purchase a home with another person, two people are guaranteeing the loan and your odds of getting the loan are increased. As well another benefit is that down payments and closing costs are also split.
Home Equity Gains
Obviously after you purchase a home you will be paying a monthly mortgage. With those payments you are in effect purchasing a part of that home with each payment, thus gaining more equity in the home, meaning you’ll own a larger share of the home versus what is owed to the lender. When the home is eventually sold, per your agreement the proceeds from the sale will to be split, hopefully making you money. This differs from renting. When you rent, you are left with maybe only your security deposit after leaving the dwelling.
Mortgage Interest Deduction
As opposed to paying your monthly rent you will be paying the bank a mortgage a payment for use of their money. The interest you pay on that mortgage will at least be partially tax deductible.
No matter what living arrangement you choose, building a home with David James Homes is a good option. Simply begin by visiting www.davidjamescustomhomes.com/#location to find a convenient location near you.
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