Families come together to help newlyweds buy…
From www.messageonrealestate.com:
More and more newlyweds are realizing that they’d rather have a nest egg to purchase their first home than the traditional toasters, blenders and place settings that comprise the normal wedding gift fare. According to Brides Magazine, more than 65% of couples live together before getting married which means that they already possess many of the items needed to start their home together – from dishes to silverware to bedding. What they really want (and need) is a little boost to their nest egg to make home ownership attainable. That’s why the founders of the Phoenix-based “Bequest A Nest” service developed a program to add structure the home funds gift-giving process.
Many may not realize that due to stringent FHA requirements, it’s not as simple as just creating a PayPal Account and collecting money from friends and family. And you can forget the traditional “Dollar Dance” where the bride simply collects cash on the dance floor! Due to increased mortgage fraud in recent years there are stringent requirements around documenting gift funds for down payments on homes. It is also important to ensure that funds are adequately seasoned. Depending on the timing between the wedding and the subsequent home purchase, a couple might need to consult with a lender to put some additional thought into how they will set up the escrow account.
Additionally, there are many complexities that come with marriage – including thinking through how marriage will impact each spouses credit. Sometimes brides and grooms don’t realize that they are marrying their credit as well – and if one partner has a blemish on their credit report it can seriously impact the new couple’s ability to buy a home in the short to medium term. While it’s not necessarily as fun as planning the honeymoon, many couples are taking a more pragmatic approach and addressing these issues head-on prior to tying the knot. With the average age at the time of marriage increasing to 29 for men and 27 for women according to Brides Magazine today’s couples have years of experience managing their credit and planning for large purchases. Many have even purchased a home or two already. Therefore, their propensity to tackle a project like saving for their down-payment during their wedding planning is higher than you would expect.
The Bequest A Nest process involves lending pre-approval along with an FDIC-insured account managed by a designated escrow officer. Additionally, referrals to legal, tax and credit repair specialists are available to ensure that the couple can begin the home-buying process with confidence and overcome obstacles which are in their way.
With a little structure and some sound advice, couples can get started on the path to home ownership and take advantage of the incredible opportunities offered in today’s market.