I don’t have to tell you children are expensive. First it’s the diapers, then it’s the toys. And that’s the easy part. Next comes school supplies, sports equipment, birthday parties, spring breaks, emergency room visits, vegan diets, college tuition, a summer in Europe and before you know it, you realized you could’ve purchased a small island off the Mediterranean coast for the amount it took to raise your offspring.
But the truth of the matter is it’s all worth it, and few (if any) would trade those 18-plus years of love and, yes, tears, for an empty villa. Unfortunately, all those growing pains cannot be financed with love and hugs. Hard work can get your clients far, but some can use their past hard work to finance the future endeavors they’re so excited to welcome in a few months’ time.
TURNING A NEW LEAF
That financing can start at home. A nursery is an exciting new addition and a beautiful way to upgrade an abode. Those already stressing about future costs on the horizon, however, should know that this is an ideal scenario for refinancing. Rates are still low, particularly if a home was purchased 10 years ago.
A new baby can also be the perfect time to examine another long-term investment: the home itself. While most pregnant women aren’t leaping from the rafters (that would be dangerous in their given state anyway) at the idea of moving during this nine-month period, one type of life-long commitment can spur conversations about the future. This may include whether the couple really plans to stay in the home for the next 22 years, if a career change or change in income is on the horizon (particularly if one parent decides to stay home with the child), and whether the home is large enough, safe enough and in a good enough neighborhood and school district for their expanding brood.
All of these considerations will ultimately influence whether a couple decides to refinance and secure better terms, or keep the loan as-is; pull money out of the home and reinvest in their property and growing family, or work within their liquid budget; or sell the home and upgrade to a larger abode with more room for growth, or make do with what they have.
There are a ton of decisions to be made during the precious time leading up to, during and after a child is born. Parents-to-be can be overwhelmed with all the things they need to consider. Take some of that weight off their shoulders by offering your assistance and stepping into a role where you can guide, protect and have their best interests at heart. We can all use a little helping hand every now and then.
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