When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
Why It's Going To Get Harder For People To Get A Home Loan
Claudia Bravo
Perfect credit and a downpayment of twenty percent of the total purchase price; that is how it used to be if you wanted to buy a house. Unfortunately, it meant that many people were never able to buy their first home because it took them far too long to save the downpayment, and by then their credit was only so-so. When government programs and alternative mortgage lending programs came along, almost everyone could buy a home. It seemed like a boon, but it ended up being a bust.
During the fallout of sub-prime mortgages in the previous decade, it became clear that all forms of government and alternative lending needed to be fixed. Government lenders were bailed out. Alternative lending institutions were not so lucky. If you are going to be borrowing money to buy a home now or in the future, you are going to find out that it will be a lot harder to get a mortage loan if your credit is not perfect and you do not have a downpayment. Here is why.
New Laws in Place
During President Obama's administration, subprime lenders were disbanded, or they were forced to change the way they lend money. They could no longer lend money with seemingly predatory, extremely high interest rates that frequently adjusted. This was good for families that were being crushed by the interest accumulating on the mortgage principles they borrowed. It was not so good for ALL lenders as they could not lend money as freely as they did before. New laws and regulations regarding interest rates on mortgages and how often and how high the interest rates could adjust affected all future lending practices.
While that benefited many current mortgage borrowers and future borrowers, it also prevents many from buying their first homes now. The subprime lenders that made it so easy for people with less-than-perfect credit and no downpayment to buy a house before could not buy a house now. The old rules of buying a house seemed to be the "new" law; downpayment and good credit needed or no mortgage loan.
Buying a House with the First-Time Homebuyer's Tax Credit
Fortunately, for some couples and families, there was still the possibility of buying a home. They could try some of the government lending programs. They could also see if they qualified for a tax credit only given to those who were buying their very first home for the first time. This program expired when President Obama left office, and has not yet been renewed by President Trump. Ergo, it is even more difficult to get a mortgage or get some help than ever before. You should, however, keep trying; there may be a lender out there that can help.
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