If you and your partner are ready to take the next step in your relationship — buying a home, that is — you'll need to agree on more than the floor plan. The decisions you make on the path to home ownership can have lasting financial consequences. Fortunately, with more unmarried couples buying homes together than ever before, it's become easier to locate a knowledgeable real estate attorney or tax expert who can help each of you look out for your best interests. But before you sit down with a professional, you and your partner need to discuss the details of purchasing your dream home together.

Here are four essential money conversations unmarried couples need to have before submitting a mortgage loan application.

1. Why is buying a home the right choice for us?

Most mortgage loans come with repayment terms of either 15 or 30 years — a significant commitment, regardless of your marital status. Uncovering the reason behind the desire to purchase a home now may reveal your long-term expectations for your relationship. If one of you wants to plant roots in a specific area with hopes of starting a family, and the other only wants to buy now because of market conditions, finding out now might help you avoid tough conversations later.

2. Who has a more robust credit score and financials?

Since unmarried couples may apply for home loans as individual applicants, identifying whether one or both of you should apply for the mortgage is crucial. If applying individually, the person with the higher credit score and income is more likely to be the better choice. Similarly, if one of you has a recent bankruptcy, the other partner may have a better chance for loan approval. Or, it may be advantageous for both of you to apply to meet income requirements.

3. Who will pay for what?

If you previously rented a home or apartment together, you might be inclined to continue a similar arrangement. Maybe your partner paid 100% of the rent, and you paid the other monthly bills. However, buying a home means you'll also need to determine how you'll pay for larger initial expenses, such as the down payment and closing costs. And don't forget that you'll have additional expenses as homeowners, including regular home maintenance, repairs, and possibly homeowners association fees.

4. Who will hold title to the home?

The person(s) listed on the title are the legal owners of the property. How names are listed on the title that can affect what happens in the event of a death, sale, or breakup. A qualified real estate attorney can advise you regarding the multiple options, which include:

Joint tenancy: Each individual owns an equal share of the property and the right to survivorship. That means if one of you dies, the surviving partner is entitled to the deceased person's half of the property.
Tenants in common: Individuals are co-owners of the property, but there is no right to survivorship. If one partner dies, their share of the property goes to their heirs instead of the surviving title holder.
Living trust: A trustee, not the homeowners, holds the title along with management rights and responsibilities of the property.
Sole ownership: One individual owns the property outright.

The title may also affect taxes and require the input of a qualified tax advisor. The implications of a property title extends beyond the simple explanations provided here. Together Credit Union strongly advises unmarried couples to seek professional guidance before deciding to purchase a home together. A qualified attorney can advise whether you should get a cohabitation property agreement, which can formalize everyone's understanding of their rights and responsibilities, as well as describe how things will be handled if you and your partner part ways.

While these conversations might not be easy, they can protect both you and your partner as you take your relationship to the next level.

Whether you and your partner are first-time buyers or repeat homeowners, Together Credit Union can assist you with the homebuying process. Contact a Mortgage Loan Officer today to learn about our HomeAdvantage® program, which can match you with the right real estate agent and allow you to earn cash back at closing.