Tips to Help Your Child Buy Their First Home

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Your kids may still need a little financial help once they’ve turned 18 and reached adulthood. Perhaps they have been particularly hard hit by the pandemic or any number of the other hardships life can offer. Though you may have plans for early retirement at this stage in your life, most people will do almost anything to help their children out in a pinch. Last year alone some 52% of U.S. young adults lived with their parents highlighting the extent of the struggle many young adults are experiencing. Your assistance and support could make a crucial difference to your child especially if they are experiencing obstacles when trying to buy their first home! Help your child get back a leg up on the property ladder and become a successful first time buyer by considering some of the tips below!

Recommend Mortgage Lenders

Appreciate that your adult kids may want much of the decision making during their homebuying process but still provide gentle recommendations to nudge them in the right direction when it comes to mortgage lenders. Give them the details of home loan experts like the St Louis mortgage lenders where the entire mortgage loan process can be found in one place. Elaborate that they also use the newest mortgage loan products and that their team walks customers through the process so they can close promptly. Mention how important it is to get a good interest rate and the lower rates the St. Louis mortgage lenders offer too. Aim to be a guide rather than an ardent enforcer when discussing their finances.

Offer a Cash Bonus

Offer some money if you have it to spare. Only do this if you feel comfortable doing so, rather than out of a sense of obligation or pressure. Try not to be alienated by this decision. Research the thousands of other parents who have done the same for their grown children, and understand how commonplace these measures now are. View the process as investing in your child’s future or even passing down their inheritance early. Refrain from feeling shame or disappointment as times are really are hard in the U.S. Do not wait for your kids to ask for help. Respect their sense of pride and dignity and try to pick up on any subtle clues they may be struggling with. Intervene and only offer your assistance if you can spare the dollars and make a real difference in their home buying journey.

Manage Risk Effectively

Recognize that risk can play a role in helping your adult child secure a new home. Counterbalance that risk with your child’s long-standing behavior and lifestyle. Consider refinancing your home if you would like to help, but money is tight. Use the funds returned to invest in them. Contemplate using your equity as security if you have complete faith in your child as these arrangements will not cost you anything if they are responsible and do not default on their mortgage. Think about partaking in a joint mortgage or guarantor mortgage as well. Try not to let your love for your child usurp your common sense though because risk is real and money is important. Reflect on their character and how likely it is that they will pay their mortgage without issue.