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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Over the past two decades, the number of American adults living with an unmarried partner has nearly doubled, rising from 4.1 percent in 2001 to 8 percent in 2021, . And as more people choose to cohabitate before tying the knot, some are also weighing up another major decision: whether or not to buy a house together before marriage. On the plus side, couples who can start building equity sooner than if they waited until after the wedding. However, those who hold off will have more time to save for a down payment and receive more tax benefits than unmarried partners. Let’s dive into the pros and cons of each scenario.

Buying a house before marriage

Buying a home can be complicated no matter your marital status. But things are particularly tricky when you’re buying with someone you aren’t legally tied to. Before deciding whether to purchase property before or after marriage, consider each of these factors.

Mortgage needs

Your marital status does not affect whether or not you’ll qualify for a mortgage, so it doesn’t matter if you apply as a married couple or as separate individuals. When you with another person, the lender will evaluate each person’s financial profile separately, including credit history and income. They’ll generally use the lower of the two credit scores to make a lending decision and determine the terms of your loan — which is fine if you are in similar financial circumstances. “It may be wise for a couple to apply together if they have comparable and debt loads,” says Nick Good, a real estate broker with EXP Realty’s Good Home Team in McKinney, Texas. “In this instance, listing two incomes on the application will raise the likelihood that it will be accepted.” However, if one of you has a subpar credit history, it could decrease your chances of getting approved. You could also get stuck with a higher interest rate or down payment. In this case, it might make more sense to have the person with the better credit apply for the mortgage alone.

Method of ownership

Even if one partner isn’t included on the mortgage, they can still have an ownership stake in the home — as long as they’re on the . “Legally, the mortgage holder does not control who owns the house,” explains Good. “Instead, it depends on who is listed on the deed, which transfers and documents ownership of the house.” There are several ways to divide ownership and define when you’re purchasing property with someone else. Some popular options include: : Both parties receive equal, 50/50 ownership rights. Some joint tenancies come with “rights of survivorship,” meaning that if one dies, the other assumes full ownership of the home. : Each party receives a percentage of the property, which can be equal or unequal. Automatic right of survivorship is not granted, meaning one person’s percentage of ownership can be passed down to an heir upon their death. This can be useful for people with children from a previous relationship, for example, who may want to leave their portion of the property to their kids. : In some states, married spouses or domestic partners can hold title as tenants by entirety, which gives each person full ownership (rather than being split 50/50). This prevents one of the partners from selling the property without approval from the other, and also provides protection against creditors.

Tax implications

When tax time rolls around, many homeowners can take advantage of the to reduce their tax liability. This is especially valuable for married homeowners. If you’re married and filing jointly, you can deduct the interest paid on the first $750,000 of your mortgage. If you’re married but filing separately, the limit is $375,000 each. The situation is not as favorable for unmarried couples who own a home together. Although singles can still deduct up to $750,000 in mortgage interest, only one homeowner can claim the deduction — meaning that one of you will miss out on the savings.

Benefits of waiting until you re married

If you’re planning on getting married relatively soon, there are several reasons why it may make sense to hold off on your home purchase until after the wedding. From a purely financial point of view, waiting to buy until you’re married gives you more time to and get a solid grip on your joint finances. “Waiting can be a beneficial moment to observe your partner’s financial habits, including spending and saving, and prevent potential financial strain from hurting the relationship,” says Jeffrey Zhou, co-founder and CEO at Fig Loans. On top of that, buying as a married couple offers more tax benefits and makes filing easier. Plus, depending on your state and title, you may have more legal protection as a married person in case of a divorce. Finally, purchasing a home is often a decades-long financial commitment. If you buy with your legal spouse, you’ll (hopefully) feel confident that you’re taking this significant step with someone that you expect to spend the rest of your life with. And one spouse having sole ownership of the marital home can become awkward once you’re both living there together.

Bottom line

Even in the simplest of circumstances, can be overwhelming. It’s even more so if you’re planning a wedding on top of it. Whether you choose to , make sure that you plan your purchase carefully and get if needed. Weigh the pros and cons of each to be sure that you’re making the right financial decision for your (and your partner’s) future. SHARE: Taylor Freitas is a freelance writer and has contributed to publications including Bankrate, LA Weekly, CNET and ZDNet. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content.

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