16 Sep 2014

Mark Zawaideh

Should You Use Mom and Dad to Help you Buy Your First Home?

Handing over Home KeysMarried couples may be ready to buy their first home. They are tired of renting or perhaps living with their parents, and it’s time for them to start their lives together in their first home. The problem is they may not be able to come up with the cash for the down payment on their own.

Sometimes you have to put down a certain percentage, so coming up with thousands of dollars is difficult. Many couples ask, should we ask mom and dad for help on the down payment of that house we want, and if so, what will the effect have on the family dynamic?

Not All Parents Will Help

Some parents may not be welcome to your request. They may say that they never had help so why would they help you. Some parents may help in desperate times, but it all depends on an individual’s parents’ point of view.

How to Ask For Help

Make sure you and your spouse have decided if you plan to pay it back. Then, you should follow these steps:

  • Get prequalified for the loan so that your parents see you’ve started the process
  • Make sure to talk to them in person and not on the phone
  • Get an agent and have your parents look at homes with you
  • Discuss your financial needs with your parents and why this is a good time to buy

Parents That Will Help

Some parents are motivated to help when they have the right motivation. That motivation could be that they want a place for their grandchildren to grow up, or they love you and want you to have your own home. These are the primary reasons that parents will help:

  • They want you to be happy and they love you
  • They want you to be successful and want to help with the start of it
  • They want a home for their grandchildren
  • They feel in control and makes them feel they can make a difference in their child’s adult life

Make sure you take the proper steps if you are going to talk to mom and dad about helping paying for your new home and keep in mind they may want to be paid back.

Topics: Buyer Tips & Mortgage News