After building consensus on participation, property criteria, and co-ownership determinations, the next step is to assess and confirm your collective readiness to move forward. Here's where you make a go/no go decision based on eligibility and viability.

How It Works

Confirming readiness is a 'spot check' self-assessment designed to understand if you're:

1. Ready to move forward and apply for a mortgage
2. Not ready to move forward just yet
3. Not moving forward

Eligibility

Eligibility assesses whether your co-buy group looks ready to apply for a mortgage based on your financial inputs, including net income, net assets, credit scores, employment status, and the absence of mitigating factors. This is also the time to consider any special circumstances, such as first-time buyer status, which may affect lending options.

Viability

Viability assesses the practicality of your co-ownership plans. Have you and your co-buyer(s) reached consensus without uncovering any obstacles? Do your purchase plans around timing, target geographies, and personal situations align with one another and the market landscape? Are the co-ownership determinations you've reached realistic and sustainable over the agreed-upon time horizon?

The measurement of both criteria is binary: a simple yes or no.

Common Indicators Co-buyers Aren’t Ready

There are no hard and fast rules, but here are some reasons we've seen co-buyers defer the decision to move forward.

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Sometimes, it's not meant to be, but other times, all that's required is legwork or time.

Examples:

• One or more co-buyer(s) are working to improve their credit score
• An impending job offer or promotion is likely to change the financial picture materially
• A personal loan or gift from friends and family is incoming
• A past bankruptcy is due to roll-off/expire from credit history

Make the Call

Making a Go/No Go decision at this juncture is a critical milestone. If all signs point to 'Go,' you're well-positioned to proceed to the following stages of the co-buying process. If it's a 'No Go,' it's better to recognize that before you make financial and legal commitments.

By completing this assessment, you'll have a clear understanding of your readiness to embark on this co-ownership journey, armed with the information and alignment needed to proceed confidently.