Wouldn't it be great to take one of those little barcode readers beyond Target's towels, toasters and flat screens and head out to the nearest neighborhood and tag something that a new bride and groom really need, their first home? Shopping the Parade of Homes or at a Sunday Open House, you could click on your favorites and receive the front door key just in time to be carried over the threshold. Only in a perfect world, right?
I know it sounds a little off-the-wall but brides and grooms getting married this year are going to face a tougher time finding a loan as first time buyers. Zero down loans have all but disappeared from the landscape and first time buyers will need cash in their pockets to put toward a new home. As mortgage programs continue to change and evolve over the next year, there is a reality to saving for that down payment. A forward thinking young couple might want to divert some of their wedding funds and gifts into an real estate investment in which they can begin their lives together.
Starting this year, new home buyers are going to NEED a down payment for a house. Not just a few bucks either. In most cases a buyer will require a minimum of 3-5% to put down. With an average Minnesota starter home in the $200,000 price range, 2008 brides and grooms will need to save at least $6,000-$10,000, plus closing costs.
But all is not lost for first time buyers, but a little forward thinking is in order. There is a lot of money involved in most weddings; both on the party planning and the gift recipient side. A savvy bride and groom might be able to figure away to have the perfect wedding AND a dream home.
New Home Gift Registry--Young couples getting married register for gifts to let their friends and family know exactly what they want and need. If you need a house, why not let your guests know? Maybe the insert in the wedding invitation should read:
"The couple is registered for a small number of necessities at Target, JC Penneys and Macys. If you would prefer not to shop, they are also saving for a down payment for a new home and would a appreciate monetary gift toward their dream."
I don't know what Miss Manner's would say about but I think a financial wiz like Suze Orman would applaud the idea.
Wedding Budget--With the average dream wedding going for over $20,000, maybe a little arranging of the budget is in order. Those saved dollars from the dream wedding can go toward that dream home instead. Now, I am not suggesting cheaping out on anything or everything, just take a look at where you can economize on your budget. Maybe you can go forego the fancy invitations or select a less expensive dress. Maybe that trip to Hawaii would be a better choice for your fifth anniversary and a road trip to the Duluth to create newlywed memories along the north shore of Lake Superior should be considered instead. Whether on wedding details, reception or the honeymoon, a 25% savings on the average wedding is $5000 cash that could go toward your dream home.
So brides and grooms start thinking about your future lives together and create a plan for your dream home. Though those scanners will not work outside of the Parade of Homes, I do! As a professional Realtor, I have helped many young couples find the home of their dreams. I know the north and east Twin Cities housing market and can help you spot a deal from Forest Lake to Andover. I will assist you in writing a fair offer and negotiate a deal so your dream can become a reality. Working with an agent to find your first home, takes the stress out of the home buying process so you can focus on preparing for your big day.
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If you are ready to buy your first home whether a newlywed or not, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 Teri Eckholm http://www.terieckholm.com/
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