So, is it better to be married when buying a house?

If you find yourself questioning whether to tie the knot or not before diving into the world of homeownership, this blog is for you. As if navigating the housing market wasn’t tricky enough, now we’re adding the complexities of love and legal documents into the mix. So, is it better to be married when buying a house? 

Well, like any emotional or financial decision, buying a house before marriage has its advantages and disadvantages. 

But, why has this issue become so pertinent today? In the past 20 years, the number of unmarried American adults living together with a partner has gone up significantly. In fact, it has almost doubled, going from 4.1 percent in 2001 to 8 percent in 2021, according to Census data. With more people choosing to live together before marriage, it’s not surprising that many choose to buy a house together before tying the knot. But, we again ask, is it better to be married when buying a house? Or, is it easier when single?

Let’s explore the pros and cons of each choice to help make your decision easier and more fruitful. Keep in mind that regardless of your relationship status, it’s important to calculate your debt-to-income ratio to understand how your incomes will come together.

How does your marital status affect your mortgage application

Qualifying for a mortgage and purchasing a home with a partner is much like buying one alone. Your marital status won’t sway your eligibility for a home mortgage. Whether you are married, unmarried, or single, your income, credit score, and assets will determine your loan qualification.

The only difference perhaps will lie in the mortgage process and property rights. 

When you apply for a mortgage, there are two primary options: single application or joint application. 

In a single application, the responsibility for approval and repayment rests solely on the partner whose name is on the mortgage. This means that only their financial information—such as income, debts, credit, and assets—will be taken into account by the loan lender. 

The advantages of a single application include potentially securing a better interest rate if one partner has a significantly higher credit score, avoiding the negative financial history of the other partner, and strengthening the application if one partner has a more stable income or lower debt. 

However, the downside is that the purchasing power is limited to the applicant’s income alone. That means that the partner’s income cannot offset high debts. 

Conversely, in a joint application, both partners are equally responsible for the mortgage loan, and both of their financial information is considered. The benefits of a joint application include stronger application with similar credit scores, potential for better interest rates, and higher mortgage amounts due to combined income. All this amounts to the affordability of a more expensive home. 

Nonetheless, the drawbacks include the impact of the lower credit score on eligibility and interest rates, as well as the lender’s consideration of the lower credit score in their decision-making.

What happens when you buy a house before marriage?

Buying a home can be complex, especially when considering it with someone you’re not legally married to. Whether to purchase property before or after marriage depends on various factors.

Your mortgage eligibility

As mentioned, your marital status doesn’t affect your mortgage qualification. Whether applying as a couple or individually, each applicant’s financial situation, including credit history and income, is evaluated separately. If both partners have similar financial standings, applying together might raise acceptance chances. However, if one has a weaker credit history, it could lead to higher interest rates or down payments, making it wiser for the person with better credit to apply alone.

Your method of homeownership

Even if only one partner is on the mortgage, both can have real estate ownership through the deed. Ownership arrangements include joint tenancy, providing equal ownership with survivorship rights; tenancy in common, allowing for unequal ownership shares and inheritance; and tenancy by entirety, exclusive to married couples, providing full ownership and protection against individual property sales.

Read more: Lady bird deed

Property rights

When it comes to property rights, timing seems to play a crucial role in the plot of marital ownership.

When purchasing property before marriage, property rights typically remain separate. That is to say, each individual retains sole ownership of assets acquired independently. Any property obtained before marriage usually belongs solely to the individual who acquired it, unless specified otherwise by a prenuptial agreement. 

Conversely, when buying property after marriage, property rights may change depending on the laws of the jurisdiction and any agreements made between the spouses. In many cases, both spouses may have joint ownership rights. However, the specifics can vary widely based on local laws and agreements. And, couples may have the option to outline their own property rights through prenuptial or postnuptial agreements. These agreements can determine how property is owned, managed, and divided in the event of divorce or separation.

Tax implications

Married couples typically benefit from mortgage interest tax deductions, allowing the deduction of interest on the first $750,000 of the mortgage when filing jointly. However, unmarried couples may face limitations, as only one homeowner can claim the deduction, potentially resulting in missed savings for one partner.

Is it better to be married when buying a house?

If you’re gearing up for marriage soon, it might be wise to postpone buying a home until after the wedding. Financially, waiting allows more time to save for a down payment and get a better handle on your combined finances. It also gives you a chance to observe your partner’s financial habits and avoid potential strains on your relationship. 

As mentioned, buying a home together offers additional tax benefits and simplifies filing. Moreover, depending on your state laws and title arrangements, being married may offer more legal protection in case of divorce. For instance, some states allow community property titles, others don’t. 

Considering that homeownership is a long-term commitment, purchasing with your spouse ensures you’re making this big step with someone you plan to spend your life with. Plus, it avoids any awkwardness of one spouse solely owning the marital home when you’re both living there together.

Pros and cons of buying a house before marriage

Pros and cons of buying a house after marriage

Last thoughts

Buying a house is a thrilling milestone, whether with a spouse or before marriage. More couples are now buying homes together before tying the knot, either to save on expenses or to start building equity sooner. However, waiting allows more time to save for a down payment and provides unmarried partners with more property tax benefits. Therefore, your marital status can affect whether you buy alone or jointly and how you hold the home’s title. And that’s why, considering the pros and cons is essential when deciding to buy a house before marriage. 

Written by Ramona Sinha. January 27, 2025

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.