There are few things as rewarding for a parent than to watch their child purchase their first home and begin flourishing as an adult in their own way. If you’re thinking that you could provide some assistance for your child in acquiring a home, let’s start by looking at 5 things parents should consider before buying a Delaware property for their children.
Establish Goals
First and foremost, you will want to sit down and have an earnest discussion with your child to figure out how you can best help them in purchasing a home.
Setting a realistic budget and helping them prepare for paying for a hypothetical home should be an initial step. Every little bit of planning that can be done now is likely to help out both you and your kid as you take further steps toward closing on a home, so don’t hesitate to go over the numbers a few times.
Once you feel that you have constructed an acceptable budget, only then should you move forward with anything else.
Understand Your Role
For some people, purchasing a property for their children can be a very awkward situation.
As a parent, they may want to step in regularly to nudge the child toward buying a specific home or maybe even continually look for ways to put the kibosh on any interest in any and all potential homes. It’s important for you to provide constructive advice while also giving your child some room to breathe and think things over for themselves.
If you discover a home that you believe suits them perfectly and they reject it, don’t desperately find reasons to argue over their dismissal of your suggestion. There’s always a chance that they will return to your previously suggested property and give it a second thought.
Bring in a Professional
When making any large decisions between two parties, it never hurts to consult an attorney.
Finding an experienced and qualified real estate lawyer in your area can go a long way to alleviating any anxieties or questions you and your child may have regarding the situation. Meeting with the attorney provides both of you ample opportunity to clarify your mutual goals and then possibly begin the process of putting everything in writing.
Even if neither of you has any inkling to bring litigation against the other party, it can’t hurt to have those protections set up and clearly laid out for both of you.
Define the Terms
Whether you choose to use the services of a real estate lawyer or not, you will need to figure out what exactly you’re helping to pay for, how much you can both expect that to cost, and if and how your child will be required to pay you back.
If you’re planning to give them the money outright, things are much simpler. However, if you’re planning to provide a loan to your child, make sure they understand how and when you expect to be repaid.
Think About the Alternatives
There will be some parents that won’t bat an eye at outright buying a property for their children, but not everyone has the financial means to do this.
If spending that amount of money is beyond your means, consider helping with a smaller bit, such as the down payment. Taking care of a portion of – if not the entirety – of your child’s down payment on a home is still providing them a spectacular gift.
Putting 20% down on a home means they will not have to pay private mortgage insurance every month and it will certainly open the door to lower interest rates when combined with a high credit score.
Professional Guidance for Parents Buying a Property for Their Children in Delaware
If you’re one of the many parents looking at buying a property for their children in Delaware and you want some help, contact us today at 302-285-9988!