My fiancé and I recently opened up a couple of joint accounts at our local bank, a savings and a checking. We both still have our separate accounts open, hers at the same bank as our joint accounts, and mine is with another bank. We want to be able to get separate loans on property so that we can maximize the amount of conventional loans available between us. Is it important that we keep those separate accounts? Or can we consolidate and just use the joints? How will having joint accounts vs. separate accounts effect our credit? Any thoughts on the matter will be greatly appreciated.
All of our accounts are joint, and we were still able to take our last two loans separately. As far as I know, it didn't have a huge effect. If anything, it helps because there are more available assets for each loan.
We go with joint accounts for both trust and simplicity. We run our money as a unit. Not for all couples, but it works for us, and there is an immense amount of financial trust in our relationship because everything is visible to both people.
That's more marriage advice than real estate advice, but I couldn't imagine it any other way for us.
Awesome, thanks Trevor. Having everything in one place will make it much easier to keep track of.
Having joint accounts also adds to the legality of "common law". Depending on your state regulations common law kicks in at a certain point allowing partners to claim 1/2 of the assets when they split. Including any investments they may have purchased separately during the time they were together. Again this is dependant on your state laws.
I do the same with my fiancé.. We keep savings in one account but have separate checking for fun money.