Why Parents Help their Children for Down Payment?

Published by cravat | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

When you are planning to purchase a house and are contemplating in asking your parents for money for down payment can be difficult.

Family dynamics can be tough because every family is different. If your family is quite well-off and has the capacity to help their children purchase a home that would be fine but that is not always the case. 

Let me give you reasons why parent prefers to help: 

1.    Few parents would like their children to own a home. If your parents, was able to purchase a home, most likely they would want to see you in your own home as well. They want you to have your own children and experience the same fun as they had. 

2.    Parents feel more powerful when their children ask for money. It gives a certain level of control and personal happiness to know that they still can make an great impact in the adult lives of their children. 

3.    Parents want to be in front of their next level achievements of their children and not wait for your will to be distributed. Your parents may realize how difficult it was for them to get their first home and they want to make it easier on you. They would want to see you do well in ways that are not as hard as they had it when they started out.  

4.    Parents simply love you. They want to see you happy, successful and take pleasure in all the goodness that life can give you. Being part of that achievement, parents feel successful, also.  

Asking your parents for help to buy your first home entails deciding whether you are going to pay them back or accept that token as a gift. For most children, choosing the gift option is likely to be chosen.  

Let me suggest an easier ways to talk and ask your parents for money for a home. 

1.    Make sure to ask your parents for money in person. Refrain from doing it over the phone, visit them, parents want to see you and they would love you even more for your visits. 

2.    Make sure you are ready to do the action and not all talk to your parents. Show them that you have taken the first step to getting a loan preapproval letter from a bank or a lender. Making your parents see that if a lender has in your paying capacity, they have faith with you, as well. 

3.    Having a real estate agent on your side, a professional who is willing to help you in your home investment, negotiate and transact with you, your parents will grasp that you are serious. Provide your parents with the agent’s business card. 

4.    Invite your parents to view the properties that you short-listed with them. In this way, they will be able to help you make the right decision and you will make them think that they part of your life. You never know, they might come up with great suggestions based on their experience. 

Keep in mind, if you decided to pay back the gift, you can make arrangements to do so out of the income of sale after you sell and are ready to purchase your next investment. Also, current tax laws allow each parent to gift up to $12,000.00 each child without paying any tax. Consult a tax account, for detailed information.