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Buying a home is an exciting endeavor for couples, regardless of marital status. But if you’re an unmarried couple looking to purchase a home in Chicago together, you should know there are some key points you should consider prior to making the big decision. Let’s dive into what unmarried couples need to know before they purchase their first home in Chicago.
Understand Ownership Rights and Responsibilities
Early on, it is important to understand exactly what each partner’s ownership rights and responsibilities are when it comes to the property. This is especially true if one partner will not be residing in the house. An attorney can help both parties draft an agreement that spells out who owns how much of the house, which partner is responsible for paying certain bills or making certain decisions, and more. It’s important that both partners feel comfortable with the terms outlined in this agreement before signing off on it.
Know Your Tax Implications
Although taxes are usually secondary to most individuals when considering a purchase such as a house, it’s important to understand all the tax implications associated with buying a home as an unmarried couple. There may be tax benefits associated with homeownership that single people don’t have access to – such as mortgage interest deductions or capital gains exclusions – so understanding these benefits can help ensure you aren’t missing out on anything when tax season comes. Additionally, depending on how the home is titled (in both individuals’ names or just one person’s name), there could be different tax implications worth exploring further with your accountant or financial advisor.
Choose Your Financing Option Wisely
The way you finance your new home will make a big difference down the road, so it’s important for you to choose your financing option wisely. If both individuals qualify for mortgages separately, then getting two separate loans may be more beneficial than seeking out other financing options – such as taking out a joint loan together, or getting one loan in only one person’s name and having another person cosign it. Each financing option has its own pros and cons, so it makes sense to do your research ahead of time and choose whichever option works best for your particular situation – both now and long-term.
Purchasing a home is always exciting, but unmarried couples need to do some additional planning in advance. That being said, all couples need to keep certain things in mind before diving into homeownership. Understanding ownership rights and responsibilities between partners, being aware of any potential tax implications, and choosing your financing option wisely are all key points for unmarried couples in Chicago who want to buy a house together. Make sure you do your homework now so you can save time (and money) down the road.