Your Credit Regarding your credit, you may think you know how to safeguard your FICO score– pay your bills on time and don’t overextend. However, some behaviors that seem harmless, or even helpful, could unexpectedly tank your score. Learning more about what these actions could be will help you keep your credit safe and avoid pitfalls. 5 Counterintuitive Ways You Can Ruin Your Credit  1. Closing Old Credit Cards– Many people have old credit cards cluttering up desk drawers that are not really needed anymore. But before you close an old card you never use, understand that the length of credit is one factor of good credit, so closing an old card could lower your score. 2. Paying Off All Debt– Lenders like to see that you can manage debt. Paying off all debt can lower your score. Keeping a small, manageable balance and regular payments might be a better strategy. 3. Co-Signing Loans– Helping someone by co-signing a loan might seem like a generous offer but understand the risks. If they miss even one payment, that bad debt will show up on your credit report and could dramatically affect your credit score. 4. Applying for Credit– If you are considering a new car or home loan, you may think applying to multiple places is the responsible thing to do. Too many inquiries in a short amount of time can lower your score. 5. Ignoring Small Bills– Take all your bills seriously. Even small bills like cable or the pool service could end up in collections if not paid on time. A collection can negatively impact your credit score for up to 10 years.Taking your credit seriously is only the first step. Understanding all the unintended ways you can damage your score is the best way to protect your credit and financial health.

What is a Down Payment Gift and Who Can Give it? When it comes to buying a home, one of the most significant hurdles many first-time buyers face is the down payment. However, a down payment gift can alleviate some of that burden. Understanding what a down payment gift is and who can provide one can make the home-buying process more accessible. What is a Down Payment Gift? A down payment gift is a sum of money given to a homebuyer to help cover the down payment on a property. This financial assistance can come from various sources, and it does not need to be repaid. Typically, down payment gifts are used by first-time homebuyers or those who may not have enough savings to cover the upfront costs of purchasing a home. Key Features of Down Payment Gifts 1. No Repayment Required: Unlike loans, down payment gifts do not have to be paid back. This can significantly ease the financial strain on buyers. 2. Documentation Required: Lenders often require documentation to confirm that the funds are indeed a gift, not a loan. This can include a gift letter from the donor stating the relationship to the buyer and confirming that the funds are a gift. 3. Source of Funds: Many lenders may also ask for proof of where the gift funds are coming from to ensure they are legal and legitimate. Who Can Give a Downpayment Gift? Several individuals or entities can usually provide down payment gifts, depending on the lender requirements and terms. Here are some common sources: 1. Family Members Family members are the most common source of down payment gifts. Parents, grandparents, siblings, and other relatives can provide financial assistance to help their loved ones achieve homeownership. 2. Close Friends In some cases, close friends may also contribute to a buyer's down payment. However, this is less common and may require additional documentation to clarify the nature of the gift. 3. Employers Some companies offer down payment assistance programs as part of their employee benefits. Employers may provide gifts or grants to help employees with their home purchase. 4. Non-Profit Organizations Certain non-profit organizations are dedicated to helping individuals and families achieve homeownership. They may offer down payment gifts, grants, or assistance programs tailored for specific communities or demographics. 5. Government Programs Various government programs exist to assist first-time homebuyers, including down payment assistance in the form of gifts. These programs can vary by state or locality, so it’s essential to research what's available in your area.  Benefits of Down Payment Gifts 1. Increased Buying Power: With a down payment gift, buyers can increase their purchasing power, allowing them to qualify for a mortgage they might not have been able to secure otherwise. 2. Lower Monthly Payments: A larger down payment can lead to lower monthly mortgage payments and potentially eliminate the need for private mortgage insurance (PMI). 3. Access to Better Loan Terms: Putting down a substantial amount can improve a buyer's chances of securing better loan terms, such as lower interest rates. Conclusion A down payment gift can be a valuable resource for homebuyers, especially those navigating the challenging waters of purchasing their first home. Understanding the concept of down payment gifts and knowing who can provide them can help buyers leverage this financial assistance effectively. If you’re considering a down payment gift, it’s wise to communicate with your lender about their requirements and ensure all necessary documentation is in order. With the right support, achieving homeownership can be a more attainable goal.