Finding the love of your life can be tricky, but what can be even trickier is making sure you’re both on the same financial page before you walk down the aisle.
Meeting with a CERTIFIED FINANCIAL PLANNER™ professional may not sound like the most romantic aspect of wedding planning, but getting aligned on money matters can safeguard your relationship against one of the most common sources of marital strife. Here are a few ways a CFP® professional can help:
Getting aligned: A person’s “money story” is informed by how they were raised, experiences they’ve had or financial lessons they’ve learned — and everyone’s story is unique. A CFP® professional does more than crunch numbers. They help you understand your personal money story to facilitate productive discussions about spending, saving and other financial matters.
Addressing the past: If either of you brings debt to the marriage, it’s essential to be transparent about the type and amount of debt,
even if you intend to keep your finances separate. Debt can affect your ability to pay for daily expenses and save for the future. Your financial advisor can help you create a repayment plan.
Addressing the future: As a couple, it’s important to share your vision of what the future holds, whether that involves buying a home, raising children, traveling the world or planning for an early retirement. Now is the time to create a road map for achieving your individual and shared goals. This should include practical considerations, such as how you will divide financial responsibilities and whether you will combine your savings and investments. Having these conversations now can help you avoid surprises down the line.
Wedding budgeting: A 2019 study from Lending Tree revealed that 45 % of couples married within the previous two years accrued wedding-related debt, with nearly half of those couples contemplating divorce as a result. A CFP® professional can help you avoid debt and create a realistic budget that
prioritizes which wedding day expenses are most important to you.
Special considerations: Your financial plan may involve special considerations. For example, if you’re over age 50 and marrying for the second time, you may want to focus on retirement, legacies and living wills. If you’re part of the LGTBQ+ community and live in a state without robust anti-discrimination laws, you’ll want to ensure that your strategy protects you both. Your financial advisor can walk you through what to consider based on your circumstances.
Don’t wait until you’ve tied the knot to address important financial issues with your spouse. Let a CFP® professional who will be committed to acting in your best interests get the ball rolling. To get started, visit LetsMakeAPlan.org.
Conversations about money are not always easy. However, setting a precedent for open communication around money during your engagement can pave the way for a healthy marriage. (StatePoint)
adding significantly to your debt.
Budget for Homeownership
There is a lot more to becoming a homeowner than just making a down payment and monthly mortgage payments. In the short-term, your budget should allow for new-home expenses like closing costs, moving, furniture, and renovations, and in the long-term, it should allow for regular maintenance tasks like gutter cleaning, unexpected repairs, and fees such as homeowner’s association dues. Avoid putting all or most of your savings towards a down payment as you’ll need to reserve enough cash for these one-time expenses and new, recurring bills. Work with your lender to see what low or no down payment options may work for you.
Reach Out to a Lender Now Many people think they don’t have what is needed to purchase a home, but what you think you need and
what you actually need may be very different. It’s never too early to reach out to a lender to understand your options. You may be able to buy sooner than you think, or if you need time to prepare, an experienced lender can provide strategies to help you plan for a future purchase.
At the Dream Mortgage Center, our team is passionate about helping people achieve their dreams of homeownership. Our mortgage experts are committed to providing you with access to information and loan programs to fit your needs. We offer competitive rates and a variety of products including low down payment options such as FHA, VA, and USDA loans, and our Dream Mortgage offers up to 100 % financing with no down payment or mortgage insurance required.**
Get started today by visiting the Dream Mortgage Center at 452 Killian Road, Suite B, in Columbia, SC 29203 or by reaching
out to Natifha Cooper at 803-466-5568, ncooper@southernfirst.com, or www. dreammortgagecenter.com. We would be honored to help you get into your next home.
The Dream Mortgage Center is a Loan Production Office (LPO) // Equal Housing Lender. // Source: NAR calculations. Principal repayment is based on a 30-year fixed rate 10% down payment mortgage. The annual percent change is a compounded annual growth rate. These can be considered as typical gains. // *The Dream Mortgage Program is a Special Purpose Credit Program designed to expand access to credit for underserved borrowers (low to moderate income and minorities) or locations, which are subject to change without notification. Mortgage Loan Applications are subject to underwriting and credit approval; additional terms and conditions may apply. Not all applicants will quaify.
