Should I get a home loan with my friend?

Hi. I'm thinking about purchasing a home in a more expensive city closer to my job. My best friend wants to buy a home too. Should we purchase one together? We'd live there at least three years before one of us would consider buying the other person's share of the house.

I would warn against getting a loan with your friend(s). You'd be tied with them in a serious transaction. Instead maybe you could buy the house and have your friend be your roommate and pay you rent?

Seriously, don't do it. I couldn't even share an animal with my best friend let alone a house and a mortgage. If he/she gets behind you'll have to handle it all by yourself.

The only person I would go into a mortgage with is my husband and I don't even know if I trust him enough for that! Just kidding. Lol. I wouldn't go into it when a friend. You don't know what may come up. Your friend might get a job offer somewhere and have to move. Or there might be repairs that you both would have to agree on.

[QUOTE=Coconut;1759]The only person I would go into a mortgage with is my husband and I don't even know if I trust him enough for that! Just kidding. Lol. I wouldn't go into it when a friend. You don't know what may come up. Your friend might get a job offer somewhere and have to move. Or there might be repairs that you both would have to agree on.[/QUOTE]

And don't forget about decorating. What if one of you wants to knock out a wall? How will you come to an agreement about things like that?

If you really want to do this, you need to see a real estate lawyer and draw up an agreement. Make sure the deed isn't 'joint tenancy' unless you want your friend to get the whole house if you die in an accident. Gruesome, I know, but you have to provide for these things.

How will the mortgage work? If your friend can't make the payments, they will be your responsibility. Make provision for that to mean your friend is incurring legal debt, with a note and everything. If you can't make the payments on your own, you might lose the house and destroy your credit rating.

Provide for selling, dividing the proceeds, and assume that you might want to sell after a month, and spell out what happens then.

I couldn't do it, but in some areas it may be your only way into the housing market.

My advice do not do it...:cool:

[QUOTE=LadyC;1743]Hi. I'm thinking about purchasing a home in a more expensive city closer to my job. My best friend wants to buy a home too. Should we purchase one together? We'd live there at least three years before one of us would consider buying the other person's share of the house.[/QUOTE]

I think it's a really good idea and it's very popular to co-buy. Do a google search and find out more about co-buying and read up on the legal side of it. Good luck.

[QUOTE=LadyC;1743]Hi. I'm thinking about purchasing a home in a more expensive city closer to my job. My best friend wants to buy a home too. Should we purchase one together? We'd live there at least three years before one of us would consider buying the other person's share of the house.[/QUOTE]

Also try looking at [url]http://www.moneysupermarket.com/mortgages/[/url] I believe they might have advise on joint mortgages.

We need to discuss this in detail.....

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