Wedding Gift Registries:
Not Just for Toasters Anymore
A trend I've seen growing more popular over time with many of my loan applicants surrounds wedding "gifts" ...
My applicants that are also engaged couples are now often times establishing a Wedding Gift Registry ... one for the distinct purpose of raising funds for their downpayment on a home purchase.
Not a bad idea, right? Definitely an intriguing one.
Consider the current following wedding/registry statistics:
#1: According to The Knot, in 2021, the average age of marriage for female participants was 33, while male respondents married at age 35
#2: The average number of invitees to a wedding is 178
#3: 91% of marrying couples are now registering for gifts of some type
#4: Guests spent an average of $150 per person on wedding gifts in 2021
A few conclusions can easily be drawn then from the articles and statistics mentioned above:
As a result, many engaged couples have now begun to brainstorm ... and expand upon the registry concept. New and vastly different Gift Registry options are now taking shape.
It's also a fact, that while these changes in gift registry options have occurred, many changes have also taken place in our lives and the economy. New challenges surrounding the process of buying a home have risen.
Saving money for any reason has become increasingly hard. That's especially true when speaking of saving for a down payment. The housing market itself has also evolved.
Recognizing those challenges as they relate to marrying couples and the idea of a downpayment gift registry becomes much clearer when the following math and the fruitful options it presents are considered:
The math reveals the great potential for a very healthy down payment gift being received ... or gift savings accumulated toward a home's Closing Costs.
Does this make you feel any different about the wisdom of implementing this type of Gift Registry?
If so, and you are a couple considering the establishment of this unique gift request, please take note:
Documentation and handling of gift monies being received are vitally important for mortgage application. Mortgage Underwriting rules regarding the receipt of monetary gifts are strict and need to be adhered to closely.
A few conclusions can easily be drawn then from the articles and statistics mentioned above:
- Weddings are a huge business
- Today's couples are older than their counterparts of those of a decade ago (let alone their parents)
- They (and their guests) are spending more on their weddings
The gift suggestions provided via these registries have evolved throughout the years too, as current registries reflect the needs and tastes of today's older marrying couples. The days of wedding couples still needing household gifts (such as small kitchen appliances, towels, etc.) have disappeared or become increasingly smaller.
Cash is now reported to be the most popular gift given at weddings (33% monetary vs 32% registry), with about 49% of couples actually preferring monetary gifts vs other gifts or forms of giving.
As a result, many engaged couples have now begun to brainstorm ... and expand upon the registry concept. New and vastly different Gift Registry options are now taking shape.
It's also a fact, that while these changes in gift registry options have occurred, many changes have also taken place in our lives and the economy. New challenges surrounding the process of buying a home have risen.
Saving money for any reason has become increasingly hard. That's especially true when speaking of saving for a down payment. The housing market itself has also evolved.
Recognizing those challenges as they relate to marrying couples and the idea of a downpayment gift registry becomes much clearer when the following math and the fruitful options it presents are considered:
Average number of wedding guests (178)
X
Amount of average monetary gift ($75 - $200)
=
Potential Gift Received: $13,350 - $35,600
The math reveals the great potential for a very healthy down payment gift being received ... or gift savings accumulated toward a home's Closing Costs.
Does this make you feel any different about the wisdom of implementing this type of Gift Registry?
If so, and you are a couple considering the establishment of this unique gift request, please take note:
Documentation and handling of gift monies being received are vitally important for mortgage application. Mortgage Underwriting rules regarding the receipt of monetary gifts are strict and need to be adhered to closely.
"Verifiable" funds and a corresponding paper trail into account(s) established for down payment purposes will be required. That means each and every check received and placed into an account(s) towards a down payment (or Closing Costs) must be copied, then provided to the Lender.
Marrying couples utilizing this type of Gift Registry must keep in mind: Underwriters will need to know WHERE the monies used for their Down payment and Closing Costs come from.
Marrying couples utilizing this type of Gift Registry must keep in mind: Underwriters will need to know WHERE the monies used for their Down payment and Closing Costs come from.
They'll want to know the "source" of all funds received. Couples need to establish simple but thorough bookkeeping steps prior to the first receipt of gift monies.
It must also be pointed out: Underwriters may request a copy of your Wedding Invitation. If formal invitations were not issued, an engagement notice or copy of the Marriage License will typically suffice.
This particular request sometimes takes my engaged or newly-married applicant couples by surprise, so I mention it here to remove any surprise element in the future.
With all the above-mentioned in mind for documentation and verification, you can see why I so strongly urge couples contemplating the establishment of a Gift Registry for down payment purposes contact me and talk prior to their registry set-up.
It just makes sense to gain the correct advice and instructions to record gifts properly prior to their initial receipt than it is to backtrack and try to document everything later. It definitely saves time and avoids frustrations down the road ...
Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else in Illinois or Wisconsin?
It must also be pointed out: Underwriters may request a copy of your Wedding Invitation. If formal invitations were not issued, an engagement notice or copy of the Marriage License will typically suffice.
This particular request sometimes takes my engaged or newly-married applicant couples by surprise, so I mention it here to remove any surprise element in the future.
With all the above-mentioned in mind for documentation and verification, you can see why I so strongly urge couples contemplating the establishment of a Gift Registry for down payment purposes contact me and talk prior to their registry set-up.
It just makes sense to gain the correct advice and instructions to record gifts properly prior to their initial receipt than it is to backtrack and try to document everything later. It definitely saves time and avoids frustrations down the road ...
Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else in Illinois or Wisconsin?Looking for mortgage financing answers, options, solutions, and experienced assistance? Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed #216987
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort,
Mokena, Manhattan, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, Cook County, and elsewhere within IL & WI.
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