I remember each year my mother would start a Christmas Fund account for me so I would have money to buy gifts with for the holidays when I was very young. I remember the hard copy glue bound coupon savings books. I would tear off a tab for each monthly deposit and have space to write in the date and amount deposited on the tab. It would allow me just enough to allocate how much I was going to spend on each person on my gift shopping list. It was at a local bank which is now known nationally by a different name after several name changes and corporate mergers.
It is amazing how we get all into titles. I think the reason why I could relate to the fund the most was because it had a name. It was not like dropping money into a regular savings account. This account was special. A special savings account which to me had a lot of meaning. After having done it the first time I was looking forward to starting it on time the next year and following years. I can even remember having a Christmas Club account after my children were born.
One thing perplexes me. With home ownership playing such a vital role in the economy haven't the banks ever started and promoted an Earnest Money Deposit (EMD) or Down Payment Fund account? Don't most all their members aspire to be home owners one day.
There are so may types of funds which exist in society. W have college funds, we have retirement funds, bond funds, mutual funds, 401Ks, IRAs all with a underlying purpose to help people save.
As a real estate agent, one of the things which I see is sometimes difficult for buyers is to come with the funds needed for their contributions to begin the process of committing to purchase a home. Let's face it this economy hasn't made it any easier. There are lots of households who have someone unemployed or underemployed in this economy which has made saving for home ownership even more difficult.
All the hype from some legislatures that if buyers can't afford the down payment then they basically don't deserve to buy a home anyways. Home ownership programs always seems to be one of those items of fresh meat for the chopping block.
Why not look at things from a whole different perspective. Housing is going to be around for a long time because people have to have somewhere to live. People get paid most often via direct deposits to some type of account because not too many paper checks are issued any more.
My thoughts are why can't banks start housing funds which allows their members to contribute a small portion of their pay amount each payday until the consumer has enough saved for their earnest money deposit and down payment for a home.
I'm really surprised banks don't offer a housing fund savings account of some type. Who do consumers go to when they are looking to finance their home? A lot of times a bank.
One of the number one excuses I hear is "we don't have the money" when it comes to earnest money deposits and down payments. Banks have money but can't lend it if the buyers don't come up with their earnest money deposit, and down payment. Sellers are looking to get paid and deposit their proceeds into the bank or roll them over to their next house to offset the loan for their next house. purchase Do you see the bank losing in this picture?
The bank has the opportunity to communicate with the buyer before, during, and after the home ownership process. Why aren't they taking advantage of it? Well it seems the bank cannot get beyond praccticing the way they always have.
To conquer new markets they need to stay active an competitive.
What I propose is banks start a housing fund savings account. Use proactive solutions to retain current members and attract new members.
We know titles work. When funds are set up and designed for specific purposes masses are drawn to them for their name or purpose alone.
It seems banks would benefit greatly having funds set up to help prospective buyers (who I will refer to as consumer) save for home ownership. The consumers earn interest on their investments. As the consumers home ownership fund investment grows and they earn interest it seems as if it would peek the banks interest in wanting to get the ball started with the consumer getting qualified for a home ownership loan.
After the buyer purchases a home the bank can then begin offering more creative products like a home repair fund, energy efficiency account fund, disaster recovery fund, rainy day fund and other creative products to keep consumers interested and loyal to their bank.
Banks need to come current with the times and offer creative products to help sustain this economy. Doing business as usual is sending the housing market into the toilet. I feel if the banks took hold of their part of the housing market and optimized their role and the effectiveness of their role it would help to stabilize the market.
Consumers who are hard-working, want to own their own home, not getting any type of government assistance need options made available to them to not only encourage home ownership but need to have the tools and resources in place to help them get to home ownership.
I think I could right a post everyday using one of the phrases my Grandmother would say. Mess up and she would have a phrase for you. The post today would always remind me of when she would say "common sense is just too common, some people ain't got the sense God gave them."
It is amazing how we get all into titles. I think the reason why I could relate to the fund the most was because it had a name. It was not like dropping money into a regular savings account. This account was special. A special savings account which to me had a lot of meaning. After having done it the first time I was looking forward to starting it on time the next year and following years. I can even remember having a Christmas Club account after my children were born.
One thing perplexes me. With home ownership playing such a vital role in the economy haven't the banks ever started and promoted an Earnest Money Deposit (EMD) or Down Payment Fund account? Don't most all their members aspire to be home owners one day.
There are so may types of funds which exist in society. W have college funds, we have retirement funds, bond funds, mutual funds, 401Ks, IRAs all with a underlying purpose to help people save.
As a real estate agent, one of the things which I see is sometimes difficult for buyers is to come with the funds needed for their contributions to begin the process of committing to purchase a home. Let's face it this economy hasn't made it any easier. There are lots of households who have someone unemployed or underemployed in this economy which has made saving for home ownership even more difficult.
All the hype from some legislatures that if buyers can't afford the down payment then they basically don't deserve to buy a home anyways. Home ownership programs always seems to be one of those items of fresh meat for the chopping block.
Why not look at things from a whole different perspective. Housing is going to be around for a long time because people have to have somewhere to live. People get paid most often via direct deposits to some type of account because not too many paper checks are issued any more.
My thoughts are why can't banks start housing funds which allows their members to contribute a small portion of their pay amount each payday until the consumer has enough saved for their earnest money deposit and down payment for a home.
I'm really surprised banks don't offer a housing fund savings account of some type. Who do consumers go to when they are looking to finance their home? A lot of times a bank.
One of the number one excuses I hear is "we don't have the money" when it comes to earnest money deposits and down payments. Banks have money but can't lend it if the buyers don't come up with their earnest money deposit, and down payment. Sellers are looking to get paid and deposit their proceeds into the bank or roll them over to their next house to offset the loan for their next house. purchase Do you see the bank losing in this picture?
The bank has the opportunity to communicate with the buyer before, during, and after the home ownership process. Why aren't they taking advantage of it? Well it seems the bank cannot get beyond praccticing the way they always have.
To conquer new markets they need to stay active an competitive.
What I propose is banks start a housing fund savings account. Use proactive solutions to retain current members and attract new members.
We know titles work. When funds are set up and designed for specific purposes masses are drawn to them for their name or purpose alone.
It seems banks would benefit greatly having funds set up to help prospective buyers (who I will refer to as consumer) save for home ownership. The consumers earn interest on their investments. As the consumers home ownership fund investment grows and they earn interest it seems as if it would peek the banks interest in wanting to get the ball started with the consumer getting qualified for a home ownership loan.
After the buyer purchases a home the bank can then begin offering more creative products like a home repair fund, energy efficiency account fund, disaster recovery fund, rainy day fund and other creative products to keep consumers interested and loyal to their bank.
Banks need to come current with the times and offer creative products to help sustain this economy. Doing business as usual is sending the housing market into the toilet. I feel if the banks took hold of their part of the housing market and optimized their role and the effectiveness of their role it would help to stabilize the market.
Consumers who are hard-working, want to own their own home, not getting any type of government assistance need options made available to them to not only encourage home ownership but need to have the tools and resources in place to help them get to home ownership.
I think I could right a post everyday using one of the phrases my Grandmother would say. Mess up and she would have a phrase for you. The post today would always remind me of when she would say "common sense is just too common, some people ain't got the sense God gave them."
