All right. So you're willing and able to shell out some serious bucks for the newlyweds. Their needs are obvious to you — they need a house, they need a car, and they need unlimited spending power for the next year or so. How far are you willing to go to nudge them into the realm of Comfortable Living?

Home Sweet Home (You Hope)

Obviously, if you're financially secure enough to be thinking about purchasing a home for your child, you're a pretty savvy guy. If you've bought everything for your kids throughout their entire life, then the purchase of a home for your little girl and her new hubby may seem like an appropriate wedding gift, and one that no bride in her right mind would turn down.

Of course, you'll need to take your daughter's personality into consideration before you sign a contract with a realtor or a builder. Is she very particular — and on issues you can't always predict? You may be dying to surprise her, but a house is one thing many women (and men) just have to choose on their own. The wrong kitchen cabinets can drive a homeowner nuts; the wrong location might mean an extra-long work commute; the wrong layout might mean that the newlyweds will pick up and move within a year.

Once you decide you're going to buy her the house, any real estate agent or mortgage broker will walk you through the process, but generally speaking, you'll need to enter into a contract to buy the home. You'll transfer the deed to the happy couple, they'll live happily ever after, and they'll be the envy of all of their friends.

Helping Them Pay for It

You're not into buying a new home for the newlyweds, but you would like to help ease their financial burden or simply make it possible for them to get a mortgage. Coughing up a big lump sum toward their down payment is a grand gesture, and something they won't forget. There are some caveats here, though (as you knew there would be).

For starters, name your price first. You want the kids to be looking at homes that are in their actual price range, so do your homework. While the size of the down payment will affect the amount of their mortgage, it is very possible for homebuyers to bite off way more than they can chew — make sure your daughter and her husband know what they're getting into.

You probably have some kind of idea what they're pulling in; if you're lending them money to buy a house, you're entitled to this information. Their monthly payment on a mortgage should ideally be no higher than 25 to 28 percent of their pretax income — feel free to pass this data along to your daughter and her husband.

Their real estate agent or mortgage broker should be their primary source of information, but any honest real estate agent will tell you that it's all too common for buyers to be approved for a much larger mortgage than they really should have, which often results in larger monthly payments than the homeowners can truly afford.

Gift or Loan?

Something else to consider: Is this money an outright gift, or is it a loan? You'll be required to answer this question (in the form of a letter or affidavit) when your daughter and her husband apply for their mortgage. Most mortgage lenders will be much happier to learn that you have given the kids the money, free and clear, and that they haven't taken on more liability in order to come up with a down payment.

While you may not be planning on charging the newlyweds interest if it is a loan, and you may be willing to wait until the end of time for them to repay you, a mortgage lender will be interested in knowing the details about any loans, even this ultra friendly one, including any payment schedule and/or interest charges and whether it's a demand loan (which basically means that you'll be repaid when you demand the money).

If it is a gift, be aware that there is a federal law limiting the amount of any one gift to $10,000 a year — or else it will be taxed. (Also, you should be aware that if you're giving out gifts of this magnitude, you'll suddenly be surrounded by youngsters who are of no relation to you, telling you how you've always been “like a father” to them.)