From I Do to Investment

It’s official: Wedding season 2019 is in full swing
Here are the most hitch-worthy financial tips and trends

Wedding advice always focuses on how to cut costs on the big day. But what happens after couples tie the knot? When discussing budget, newlyweds need to also consider where they’re going to live, how they’ll satisfy a down payment, and most importantly, what to do with all those generous gifts they receive from loved ones.

Before breaking of glass, let’s take a look at some recent news and trends in the wedding world. Nowadays, young people are not only moving across the country in order to save money. They’re also receiving some unusual (yet substantial!) gifts from wedding guests. Sure, many traditions remain. But when it comes to finance, today’s brides and grooms have gotten pretty savvy.

A match made in heaven

Even in 2019, the majority of people assume that newlyweds are forced to choose: have a big, fancy wedding ceremony, or splurge on a down payment. That’s because people still marry fairly young, and aren’t established enough to cover the costs for both a wedding and home. But now, research says there’s a way to have it all—and more.

According to Realtor Magazine, three of the United States’ largest metros—Pittsburgh, Detroit and Cleveland—have managed to cut the combined cost of a wedding and down payment by almost half the national average.

Let’s put things in perspective. The typical American couple drops around $109,000 when everything is said and done—the engagement ring, wedding attire, honeymoon and a 20% down payment. But in these three major cities, thrifty pairs average only $65,000. So, is it possible to mimic their money saving talents?

To have and to hustle
To start, realize that some of these factors are fixed. Unless you’re willing to move to an area where the median list price is relatively low, you have to contend with your local market. The same goes for those planning a ceremony in an expensive city. Check out the top 5 chart for comparison.

Most expensive places to marry
Average costs, 2018

Notice a pattern? In certain Northeastern parts of the country, wedding expenses are far more costly. While it’s important to consider location and its convenience for your guests, maybe this is the right argument for a destination wedding!

Down the aisle to down payment

Now, onto the topic of housing. If your parents are paying, or you have enough money to cover the ceremony yourself, you’re halfway to homeownership.

How? Even couples who don’t have the strongest financial track record have discovered two unconventional methods for securing a home after they get married. The first involves cash and checks received at the wedding; the second, the gift of equity.

During the underwriting process, lenders will want to verify that recent deposits are in fact gifts (not loans), and that’s where a gift letter comes into play. To lock in a low interest rate and get approved, couples should document where those sudden sums came from. Be sure to collect the following information prior to mortgage shopping.

Gift letter checklist

• Full name of the donor
• Exact dollar amount
• Date of fund transfer
• The person’s relationship to you
• The person’s current contact information
• A written record of agreement (not a loan!)
• The person’s signature
• Info on the property you seek to purchase
                                       Visit Smart Asset for more post-wedding mortgage tips