Getting married and buying a home are two huge milestones for young adults. It's not unusual to see young couples with goals of achieving both within short succession. With the cost of an average wedding equivalent to a down payment on a home, most couples have to prioritize their goals, saving, and spending.
According to a 2016 survey by The Knot the cost of a wedding reached a national average of $35,329. The average age of the bride and groom was 29 and 31, respectively.
In 2016, the National Association of Realtors listed the average age of a first time home-buyer at 32 years old.
There are some couples that can afford to achieve both goals simultaneously, but most have to prioritize their goals, and save accordingly.
5 of the top 25 most expensive places to get married in the U.S. are in California, and the average home price in Temecula is $430,000.
Some engaged couples opt for home-purchase funds instead of creating a more traditional wedding registry. With couples shelling out more money per guest to create the ultimate wedding guest experience, nearly half of couples are spending more than they planned on their wedding, so creating a wedding budget is crucial.
Keep in mind that your mortgage loan qualifications are going to be based on your income, credit, and financial liabilities. By over-extending your wedding spending and cutting into your cash reserves, as well as your extending your credit liabilities, there can be consequences when it comes time to qualify for a home loan. Taking on wedding related debt can damage your credit score and result in a higher interest rate. High credit liabilities and low cash reserves can negatively affect what type of loan you qualify for, or even eliminate your ability to qualify for a home loan all together.
To keep costs in check, create a solid wedding budget and stick to it. Remember to keep your special day about you and your fiance. It's okay to trim the guestlist or cut out low priority expenses, especially if both a wedding and home purchase are in your short term goals.
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