Wedding Gift Idea: A New Home Bridal Registry
Jack and Diane are engaged. They live in separate apartments, much of the time. Anyway, their belongings are separated into those apartments, both of which are too small to accommodate both of them. They have read the "Buy" page and blogs on walt-smith.com about buying v. renting, turning renters into homeowners and The Millennials Guide to Getting a Mortgage. Living together will save money and increase their disposable income, but neither has much tucked away. To buy a house with a conventional mortgage, they can put down 20% and avoid private mortgage insurance (PMI) or they can go with an FHA loan with a down payment of 3% to 5% and PMI. In any event, the more they can put down against the price of the home, the less they borrow and the less interest they will pay over the course of the loan. For wedding presents, they don’t need crockpots, coffee makers, blenders or dishes. They need a New Home Bridal Registry.
It is not a new idea, but it might be new here and it is one that should be promoted by real estate professionals, builders and mortgage bankers to engaged couples. Family and friends can help the couple save for a down payment by making deposits into the account as a wedding gift. For tax purposes and to satisfy “gift letter” requirements of the mortgage underwriters, careful records must be kept of who makes the deposit and how much.
One builder in central Pennsylvania is promoting the campaign on Pinterest, urging followers to build a board on the site, offering a $250 gift card from Bed, Bath and Beyond. Participants can also view images of the builder’s model homes and floor plans and learn more about the New Home Bridal Registry campaign through the builders own board.
With the recent slump in the economy, poor job numbers, student loans and the like, newly married couples have a tough time coming up with the money for a down payment. At the same time, we are experiencing a time in the market when interest rates are still lingering close to historic lows, qualifying for a loan is getting easier, and the inventory of available homes, though shrunken with the elimination of foreclosures, is still good due to the high number of building permits being pulled. For many of these young couples, renting no longer makes sense.
If this article describes you, give me a call and we will look into setting up your New Home Bridal Registry.
Walt Smith, Broker
Coldwell Banker Residential Brokerage
803 622 5210