While applying for a home loan with future spouse on a home loan may be stressful, there are benefits to taking this step to home ownership.
Having a co-applicant on a home loan increases eligibility of approval for a loan. Additionally, two applicants are more likely to receive larger loan. A co-applicant and the actual borrower are both liable for the paying off the loan. If the borrower dies or defaults on the loan, then the co-applicant becomes accountable for the home loan. In order to ensure the payment of the loan, banks prefer and sometimes require co-applicants to be related or close to the borrower, such as a spouse or parent.
Many new couples are hesitant when buying a home and taking out home loans together. However, most banks and financial institutions are more likely to approve a future spouse as a co-applicant.
If a future spouse already has a home loan, they can still become a co-applicant on another home loan. Being co-applicants on a home loan assures banks that all necessary payments will be paid off.