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How to help your child prepare for buying their first property 

June 12, 2023, 10:02 am

Proud moments for parents are times to be celebrate and rejoiced in, and no more so than when your grown-up child is ready to leave home for the first time.

6 west development

With that being said, here us how to help your child prepare for buying their very first property.

Teach Them All About Monthly Bills

First and foremost—even if your responsible son or daughter has paid regular and timely contributions for rent at home—it is still unlikely that they are familiar with individual household bills.

For an even more accurate experience of just how much it costs to run a home month-in, month-out, you could even have them look over the average cost of each bill. This way, they will have no nasty surprises and simultaneously will save a little more towards their deposit. 

In addition, be sure to encourage your child to start spending responsibly in general, so the shock to the system of paying a plethora of bills each month is reduced. 

Attend Pre-Approval Meetings Together

It may well be the case that your child is extremely sensible, objective, and professional when it comes to such important matter as applying for a mortgage, but for a plethora of reasons it is still advisable to attend pre-approval meetings together with them.

Established loan offers in Colorado will go through every step in detail with your son or daughter and often, it can seem as if there is too much information and data to take in for one person. If you are unable to attend these meetings, you could instead encourage your child to take a notebook and pen with them to ensure nothing is missed out. 

Consider Different Mortgage Options

Now, if your son or daughter has their own regular income stream, or you simply want them to be able to confidently stand on their own two feet, then their mortgage should be their responsibility, and whilst you will be with them every step of the way, their finances are their own.

However, if you have a different opinion on the matter and want to help them financially, aside from gifting them a sizeable amount of money, there are several mortgage options to consider, which are as follows:

  • Remortgaging your own property to free up money to lend to your child
  • JBSP mortgages whereby you are both named but your child will be on the deeds
  • Joint mortgages where you are both on the mortgage and the property deeds
  • Guarantor mortgages whereby you place your own home as collateral 

Be Open and Honest About Any Limitations

No parent ever wants to accidentally set up their child for a fall and when it comes to the huge and long-term responsibility of buying a house and all that entails, it is absolutely essential that you do not mince your words.

For example, if your son or daughter has dreamy aspirations of purchasing a cheaper property and then enlisting handymen, friends, and family members to help transform one or more spaces, you need to be frank as to how much this costs and how unrealistic this may be. 

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