Wedding Season is here!
Whether you are about to tie the knot and are looking to setup your registry, or you are attending a wedding in the coming months, consider why saving for a down payment at this major life milestone could be one of the best decisions to make or why helping someone attain this goal is is the best gift to give.
Forget the Tiffany china and Frette linens as cash is king! Giving yourself the gift of a home is the best gift you can give yourself, so kindly ask for cash in lieu of a registry and let all your guests know you are working towards owning your dream home.
Attending a wedding soon? While cash me not be your idea of a great gift, consider how much it could help a young couple looking to purchase their first home.
Gifting a Down Payment
A wedding is a great time to gift money towards a down payment. We previously wrote about 10 Ways to Save for a Down Payment, and it is no surprise that gifting was one of the ways to work towards this goal.
Often times, first-time homebuyers think that a gift cannot be used to make a down payment on a home as it will not qualify them for a mortgage. While it is important to note you must be qualified under normal mortgage lending guidelines to receive a loan, it is also important to stress that, yes, you can use a gift to make a down payment on a home. If you have questions about mortgage approval and how it may relate to a gift, this is a great time to connect with us as we can refer to a qualified Mortgage Broker to discuss specifics as each lender has its own Best Practices.
You may be thinking that cash sounds like a boring gift or that you do not like to give cash, however, cash is the most valuable gift when it comes to working towards owning a home. It can feel awkward asking people for money, but a wedding is a great opportunity.
Let attendees know how important owning a home to you is, and that you are diligently working towards it so cash for a down payment is high on your wish list! In fact, the cash for a down payment may more than pay for itself in the long run.
Owning a Home is a Vehicle to Wealth
Owning a home is regarded as one of the biggest contributing factors to accumulating wealth. In fact, a self-made millionaire told CNBC that not owning a home is the single biggest Millennial mistake. Those that own homes are wealthier by a large margin than those who do not own a home.
Many people, especially Millennials, find themselves in a situation where they are struggling to pay high rent prices in many urban and metropolitan areas which leaves them for little discretionary income to spend, and, more importantly to save. Crippling student debt and credit card loans leave many with no option but to continue to rent. This does not mean, however, that some of these individuals would not be able to qualify for a mortgage. They simply are unable to save money for a down payment given wages vs debt obligations.
This is where taking the opportunity to receive gifts as cash be can a wise decision as it can boost a "down payment fund" to the next level. Instead of paying rent each month towards something that is not owned, home owners making mortgage payments are paying towards something that will be theirs, something that will increase in value, and thus increase their wealth.