423 cases per 100,000 resident for state with highest identity theft
This post originally appeared on Finder.com.
As the world continues to cope with COVID-19, America is seeing cases of identity theft soar to record highs. Of the 3.2 million reports to the FTC’s Consumer Sentinel Network Data Book in 2019, 20% — or 650,572 — related to identity theft. And already in the first quarter of 2020, reports of fraud and identity theft are up 20.1% from the previous quarter.
The numbers could rise as more people continue to work from home and new reports of coronavirus-related fraud and scams come in.
Among these all-time-high cases, credit card fraud leads the charge.
I just watched a documentary on the dark web, and I will never feel safe using my credit card again!
Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.
I need that peace of mind in my life. What else do you get with ExtraCredit?
It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.
It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.
…we live in Oklahoma.
Identity Theft vs. Account Takeover
Identity theft involves the unauthorized access of personal information, such as your name and Social Security number. Account takeover is when a fraudster accesses account information, such as credit card numbers, with the intent of committing fraud on existing accounts.
In 2019, victims reported $160.3 million worth of losses resulting from identity theft, according to the FBI. Credit card fraud made up the overwhelming majority of that $160.3 million.
This number represents only what was reported through the FBI’s Internet Crime Complaint Center. However, and doesn’t account for reports made directly to field agents.
Most Common Types of Identity Theft
Swiping the competition in 2019 was credit card fraud, which accounted for 41.78% of all identity theft reports to the FBI, followed by other identity theft, which includes fraud conducted via email and social media. The least common was government documents or benefit fraud at 3.54%.
Identity Theft and Credit Card Fraud by State
The dubious honor of state with the most identity theft reports goes to Georgia, with the Peach State logging 423 cases per 100,000 people in 2019–176 of those falling under the credit card fraud umbrella.
Florida came in just south of Georgia with 154 cases of credit card fraud per 100,000 people, followed by California and Texas.
The state with the fewest number of reports was South Dakota, with 47 reports of fraud per 100,000 people, followed by Vermont and Wyoming.
Several states in the middle of the country also came in at the middle of the pack, like Missouri and Colorado, with 41 and 45 reports of credit card fraud per capita, respectively.
Credit Card Fraud by Metro Area
Georgia maintains its top spot in individual metropolitan areas, accounting for three of the five areas with the most reports of identity theft per capita–Warner Robins, Atlanta-Sandy Springs-Roswell and Macon-Bibb County. A person convicted of financial transaction card fraud of more than $100.00 within a six-month period in Georgia can be charged with a felony. The ramifications can be a fine of up to $5,000.00 or a prison term of one and five years. On the flip side, Muncie, Indiana, logged the least number of reports at 37 per 100,000 people, followed by Glens Falls, New York, and Tullahoma-Manchester, Tennessee.
Top 10 metropolitan areas with highest identity theft per 100,000 residents – data
Rank
Metropolitan area
Reports per 100,000 residents
Number of reports
1
Warner Robins, GA Metropolitan Statistical Area
661
1,281
2
Atlanta-Sandy Springs-Roswell, GA Metropolitan Statistical Area
570
33,940
3
Miami-Fort Lauderdale-West Palm Beach, FL Metropolitan Statistical Area
556
34,458
4
Macon-Bibb County, GA Metropolitan Statistical Area
455
1,045
5
Memphis, TN-MS-AR Metropolitan Statistical Area
446
6,027
6
Columbus, GA-AL Metropolitan Statistical Area
433
1,322
7
Columbia, SC Metropolitan Statistical Area
411
3,420
8
Los Angeles-Long Beach-Anaheim, CA Metropolitan Statistical Area
410
54,553
9
Houston-The Woodlands-Sugar Land, TX Metropolitan Statistical Area
367
25,656
10
Dallas-Fort Worth-Arlington, TX Metropolitan Statistical Area
367
27,637
Top 10 metropolitan areas with lowest identity theft per 100,000 residents – data
Rank
Metropolitan area
Reports per 100,000 residents
Number of reports
1
Muncie, IN Metropolitan Statistical Area
32
37
2
Tullahoma-Manchester, TN Micropolitan Statistical Area
34
35
3
Glens Falls, NY Metropolitan Statistical Area
34
43
4
Lewiston-Auburn, ME Metropolitan Statistical Area
38
41
5
Appleton, WI Metropolitan Statistical Area
41
97
6
Owensboro, KY Metropolitan Statistical Area
41
49
7
Wenatchee, WA Metropolitan Statistical Area
42
50
8
Bismarck, ND Metropolitan Statistical Area
41
54
9
Ogdensburg-Massena, NY Micropolitan Statistical Area
43
46
10
Eau Claire, WI Metropolitan Statistical Area
43
72
Methodology
Finder sourced all data from the Consumer Sentinel Network Data Book 2019, released by the Federal Trade Commission in January 2020. The Consumer Sentinel Network Data Book uses reports in its Sentinel secure online database available to law enforcement only. These consumer reports are about fraud, identity theft and other consumer protection topics, with more than 3.2 million consumer reports filed in 2019.
The reports in Sentinel are sourced directly from:
People who call the FTC’s call center or report online
Reports filed with other federal, state, local and international law enforcement
Organizations like the Better Business Bureau and Publishers Clearing House
Are you looking for the best side jobs for teachers? Teaching is a great career choice and teachers are very much needed in the world. Unfortunately, though, it is not the highest-paying job that exists. Due to that, you may be looking to find ways to make extra money as a teacher. Side hustles for…
Are you looking for the best side jobs for teachers?
Teaching is a great career choice and teachers are very much needed in the world. Unfortunately, though, it is not the highest-paying job that exists. Due to that, you may be looking to find ways to make extra money as a teacher.
Side hustles for teachers are great because they can help you make extra income, pay off debt, save for a vacation, and more.
Teachers have many useful skills, which make them a great fit for many different side hustles alongside their main teaching job.
Quick Summary on Side Jobs For Teachers:
Online tutoring and selling lesson plans are popular side jobs for teachers that use their existing skills
Selling crafts, selling printables, or teaching online courses can be a nice creative outlet
Short-term and seasonal side gigs like coaching sports or teaching summer school may be better for your schedule than year-round gigs
Best Side Jobs For Teachers
There are 36 side jobs for teachers listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
Below are 36 side hustles for teachers.
1. Sell educational printables
Selling educational printables can be a great way for teachers to make extra income and it is great for anyone who wants to learn how to make passive income as a teacher.
An educational printable is a teaching resource, either digital or physical, that educators create to help with learning.
Other teachers buy these for their classes and so do parents.
Educational printables are things like math problems, vocabulary cards, and science experiments. They work for different grades and learning goals, making it an easy way to add to regular teaching or homeschooling. You can share these resources online or print them for in-person classes, making them a helpful tool for improving education.You can learn more at How I Make $400,000 Per Year Selling Educational Printables.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
2. Tutor online or in person
Tutoring services or helping kids get ready for standardized tests either online or in person can be a great side hustle for teachers.
This option can be a natural fit, as you can use your teaching skills to tutor students.
To start, check out different online tutoring websites like Tutor.com or you can also do in-person tutoring sessions. For in-person tutoring sessions, you can contact local tutoring companies or promote your services on social media or in local Facebook parent groups for your area.
3. Sell your lesson plans
As a teacher, you already make lesson plans for your classes. You can actually sell your lesson plans, earn extra money, and help other teachers.
The most popular platform for this kind of side job is Teachers Pay Teachers (TPT). Here, you can upload your lesson plans, activities, assessments, and other educational resources. Each time someone purchases one of your items, you’ll earn some income.
Lesson plans need to be well-organized, easy to understand, and tailored to specific grade levels and subjects (such as fifth grade math). You should include clear objectives and step-by-step instructions to make your lesson plans more appealing to potential buyers.
4. Coach a school sport or other after-school program
Coaching a school sport is something that you can do within your own school district as many schools are in need of help with their sports teams.
Some sports and after-school programs that can be a teacher’s side hustle include soccer, basketball, volleyball, and track-and-field, as well as clubs such as yearbook, chess, choir, and more.
5. Start a dog bakery
Starting a dog bakery can be a fun side job for teachers who love both dogs and baking.
You can make an extra $500 to $1,000, or even more, each month by making treats for dogs. You can make dog treats like cupcakes, cookies, cakes, and more.
You can learn more at How I Make $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
6. Sell crafts on Etsy
Selling crafts on Etsy can be a great way to make extra money by being creative.
Etsy is a website where people from all over can buy and sell handmade and digital products.
Some ideas for products you can create and sell on Etsy that are teaching-related include:
Classroom decor items
Educational games and activities
Customized planner pages and stickers
Flashcards and study materials
Of course, you can create things that aren’t related to teaching at all, such as knitwear, jewelry, and more.
7. Sell on Teachers Pay Teachers
Teachers Pay Teachers (TPT) is a site specifically for educators to buy and sell educational materials, and this is a popular teacher side hustle. If you’ve developed lesson plans, worksheets, or other teaching tools for your classroom, you can share and earn from them on TPT.
I know I talked about selling education printables and lesson plans above, but I want to talk more about Teachers Pay Teachers in its own section because it is such a popular teacher side hustle.
You can sell:
Lesson plans and unit studies
Worksheets and printable activities
PowerPoint presentations and interactive notebooks
Posters, charts, and visual aids
For example, I looked on Teachers Pay Teachers and searched for third grade lesson plans. There, I found over 49,000 results such as math lesson plans about rounding, substitute teacher plans for third graders, reading comprehension lesson plans, and more. Here’s an example of one that you can look at.
The average teacher on Teachers Pay Teachers can make around $300 to $500 extra, but there are some teachers that make hundreds of thousands of dollars extra each year.
8. Babysit
As a teacher, you may find that babysitting is an easy side job to pick up, and, depending on where you live, you may be able to earn around $15 to $25 an hour. Parents love hiring teachers as babysitters because they have so much experience with children.
While babysitting, you’ll find that your existing skills from teaching make a difference in providing the best care possible.
9. Teach English as a second language online
Teaching English as a second language (ESL) online is a popular side job for teachers. As an online ESL teacher, you can help students learn English and work from home.
Most jobs require you to be a fluent English speaker with a bachelor’s degree.
10. Teach summer school
One of the obvious ways for teachers to make extra money in the summer is to teach summer school.
It’s a great way to make use of your teaching skills while earning extra income. Plus, summer school takes place during summer break, so it should fit well with your schedule of already being off from school.
11. Summer camp counselor
Another great option during the summer months is to become a summer camp counselor.
As a counselor, you’ll supervise children in activities such as sports, arts, and crafts. Camps are always looking for instructors with teaching experience, making this a good side job for educators.
12. Grade papers
Grading papers as a side job may appeal to you if you’re looking for a more flexible, at-home option.
Companies such as Measurement Inc. hire teachers to grade student work, such as essays and test answers.
They are hiring evaluators to score in the subjects of English, mathematics, science, and more and pay starts at $15 per hour.
13. Work at a restaurant
If you’re looking for something completely different from teaching, you could take a part-time job at a restaurant.
Working in restaurants can be a good fit for teachers because they often offer flexible hours that can align with your teaching schedule. You can choose jobs like being a server, host, and more.
14. Proofread
As a teacher, you are probably already a great proofreader and are able to spot mistakes easily. With these skills, proofreading can be a great side job. By proofreading, you can help authors, website owners, students, and more improve their writing while earning some extra income.
Even the most skilled writers can make mistakes in grammar, punctuation, and spelling. That’s why hiring a proofreader can be very helpful for pretty much anyone and everyone.
If you want to find online proofreading jobs, I recommend watching this free 76-minute workshop all about how to get started proofreading.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
15. Blog
Blogging can be a fun way for you, as a teacher, to make extra money from home. Many blogs are run by teachers, and I completely get why – you can blog in your spare time and you don’t have to stick to any formal schedule.
To start your own blog, first, choose a topic that you’re interested in writing about, maybe something related to your teaching field or a hobby you enjoy.
You can make money from your blog in ways such as:
Affiliate marketing – Share links to products or services related to the topic you are writing about, and earn a commission for sales generated from your referral links.
Advertising – Include display ads or sponsored posts on your blog.
Courses and ebooks – You can create courses or ebooks related to your area of expertise, and sell them through your blog.
Since I began Making Sense of Cents, I’ve made more than $5,000,000 from my blog, and it all started as a side job.
Learn more at How To Start A Blog FREE Course.
Similar to blogging, a teacher could also start a YouTube channel, a TikTok, and more.
16. Freelance write
If you are looking for side jobs for teachers from home, then becoming a freelance writer can be a great choice.
Freelance writers write content for blogs, websites, magazines, newspapers, advertising companies, and so much more.
You can find different writing jobs on platforms like Upwork and Fiverr, or even find clients on your own, such as by reaching out to websites that you are interested in writing for.
Recommended reading: 14 Places To Find Freelance Writing Jobs – (Start With No Experience!)
17. Transcribe
An online transcriptionist’s job is to listen to video or audio files and then type out everything that they are hearing. There are many different types of transcriptionists, such as legal, general, and medical transcriptionists.
This job requires strong typing and listening skills, and you can work from home on your own schedule.
Transcriptionists earn around $15 to $30 per hour on average.
I recommend watching FREE Workshop: Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
18. Flip used items for resale
Flea market flippers find underpriced items at flea markets, yard sales, and thrift stores, then resell them for a profit. This job requires a good eye for finding valuable items that you believe can be sold for a higher price.
As a teacher, you could find and sell items in the evening, on the weekends, over holiday breaks, and in the summer. You get to make your own schedule, and it can be however many or few hours as you want.
Some items that you can resell include:
Vintage furniture
Collectibles, such as toys, coins, stamps, books, and more
Sporting equipment
Clothing
Electronics
I recommend signing up for a helpful webinar on this topic, How To Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business.
19. Bookkeep
Bookkeepers are people who keep track of all the money-related things for businesses. Bookkeepers do tasks like:
Tracking income
Organizing expenses
Making financial reports
This is typically a flexible job that you can do from home on your own time.
You can join the free workshop that focuses on finding virtual bookkeeping jobs and how to begin your own freelance bookkeeping business by signing up for free here.
Recommended reading: How To Find Online Bookkeeping Jobs
20. Sell Canva templates
Creating and selling Canva templates online allows you to work from home in your free time.
A Canva template is like a pre-designed layout that you can use for creating things like social media graphics, Pinterest pins, ebooks, or presentations. It is a helpful starting point if you’re not very skilled at designing from scratch. Business owners, marketing professionals, nonprofit organizations, educators, event planners, restaurants, and more buy templates all the time.
Canva templates come with blank spaces where buyers can add their own words or pictures, adjust colors and fonts, and more. They’re useful for people who want their graphics to look high quality without spending a lot of time in the process (or perhaps they don’t know how to do it so templates help them a lot!).
Making and selling Canva templates can be a great way to earn extra money as you only need to create them once, and then you can sell them as many times as you’d like.
Recommended reading: How I Make $2,000+ Monthly Selling Canva Templates
21. Rover (walk and watch pets)
Rover is a website that links pet owners with pet sitters and dog walkers. You can do this job on the weekends throughout the year, or simply only open up your schedule during the summer months. It is up to you.
Getting started is easy on Rover – you set up a profile that talks about your experience with pets and the services you can provide, like dog walking, pet sitting, and house sitting.
Then, you will receive requests from customers and talk about pricing. Rover takes care of processing payments, and you’ll receive payments directly into your account.
You can sign up for Rover here.
22. Care.com
Another platform for finding pet and house sitting side jobs is Care.com. Care.com is not limited to pet care and includes other caregiving services, such as childcare and senior care.
You can browse available jobs in your area and apply to those that match your skills and interests. Care.com also allows clients to contact you directly for your services after you’ve created a profile. Once a job is completed, you’ll receive payment through the site.
23. Be a virtual assistant
A virtual assistant provides administrative, technical, or creative support to clients from home.
Some of the tasks you might do as a virtual assistant include managing schedules, responding to emails, making travel arrangements, handling social media accounts, and even writing articles or creating presentations.
If you want to become a virtual assistant, I recommend taking the free workshop called 5 Steps To Become a Virtual Assistant.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
24. Be a food photographer
Food photography can be a fun and creative way to earn extra income during your free time. Food photographers do just that – take pictures of food.
Whether you’re working directly for restaurants, magazines, or on a freelance basis, this job allows you to use your skills and interests to create beautiful images.
You can learn more at How To Become a Food Blog Photographer And Earn Over $50,000 Each Year.
25. House sit
As a teacher, you might be looking for ways to make some extra money during breaks or weekends. One option to consider is house sitting, and this is when you watch someone’s home (such as watering their plants and collecting mail) and sometimes take care of pets while their owners are away. People also hire house sitters so that their homes aren’t sitting empty because a visible presence can deter potential thefts.
To get started in house sitting, you can join house-sitting websites to find opportunities in your area, or ask friends and family for referrals (you might want to start by house sitting for people you know and then ask for references that you can use to broaden your job search).
26. Rent out an unused room in your home
If you have a room in your home that you are not using, then you may be able to rent it to someone on either a short-term (such as by becoming an Airbnb host) or long-term basis (getting a full-time roommate).
I have rented out rooms many times in the past, and it was a great way to make some extra income for space that I wasn’t using.
You can learn more at What You Need To Know About Renting A Room In Your House.
27. Rent your garage space
If you have empty storage space, such as a garage, driveway, closet, basement, or attic, you may be able to rent it out and make extra money. This can be a lucrative side hustle where you don’t have to use up much of your spare time.
You can use Neighbor to list your extra space for rent and make up to $15,000 per year by doing so. With Neighbor, you can rent out your garage, driveway, basement, or even a closet.
You can sign up at Neighbor for free here and list your space.
You can also learn more about Neighbor at Neighbor Review: Make Money Renting Your Storage Space.
28. Rent out a photo booth
Renting a photo booth can be a fun side job for teachers.
To get started, you will need to buy a photo booth as well as things like backdrops and props for people to hold in the picture (such as hats, signs, fun things to hold, etc.).
On average, photo booth rentals can range from $500 to $1,000 per event, and in some cases, even more for specialized events or packages with additional features.
I have personally rented a photo booth for an event in the past, and it was a lot of fun!
29. Online surveys and focus groups
Taking online surveys and answering questions for focus groups is very part-time and can be a way to side hustle for teachers.
You share your thoughts plus answer questions and can earn cash or free gift cards.
The survey companies I recommend signing up for are:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Pinecone Research
PrizeRebel
User Interviews – These are the highest paying surveys with the average being around $60.
Recommended reading: 18 Best Paid Survey Sites To Make $100+ Per Month
30. Voice over act
A voice-over actor is the person whose voice you hear but don’t see in YouTube videos, radio ads, educational videos, and more.
Different companies need a wide variety of voices, and that’s where you come in.
Recommended reading: How To Become A Voice Over Actor And Work From Anywhere
31. Mystery shop
I was a secret shopper in the past, and there were often mystery shops that gave me $100 to put toward a free dinner. I always looked forward to these, as I was living paycheck to paycheck, and I used these restaurant mystery shops to reward myself every now and then.
There were other mystery shops that paid me actual money, and some paid me in free items, such as makeup, movie theater tickets, and car oil changes.
Companies hire mystery shoppers to get an understanding of their customer’s experience. Companies want to know a real product opinion, how the customer felt they were treated at their business, how phone calls were handled, and more.
Basically, mystery shopping is a way to anonymously test the entire shopping experience.
You can learn more at How To Become A Mystery Shopper.
32. Fitness trainer
Fitness trainers help people reach their health goals through customized exercise plans and nutrition advice. This is typically a job where you can choose your schedule, so you can choose to work hours outside of your teaching job, such as in the evenings and on the weekends.
I actually know a few teachers who are fitness trainers on the side, so it must be a good fit!
Another positive is that you can even choose between in-person and online coaching. Online coaching can mean that you can work remotely, making it a more flexible side job for teachers looking to earn extra income.
33. Find random gigs on Craigslist
As a teacher looking for side jobs, you can look for random gigs on Craigslist to earn some extra income. To begin your search, simply go to the Craigslist website and select your city from the home page.
Here are some jobs I found through a quick search:
Cleaning a house
Help assembling furniture
Taking down a shed in a backyard
Garage cleanup
Mover
Handyman
Movie extra
Sign holder
You can even post your own services on Craigslist if you have a skill you’d like to share with others, such as giving music lessons or tutoring.
34. Deliver groceries with Instacart
Grocery delivery services are popular because there are more and more people who want someone to do their grocery shopping for them.
Services like Instacart need personal grocery shoppers, and the average shopper makes $15 to $20 an hour to deliver groceries. Drivers are paid per order, and you get to keep 100% of your tips. You also get to choose your schedule, so a teacher could choose to work in the evenings or on weekends. Or, you could choose to only deliver groceries during the summer.
You can click here to sign up to be an Instacart Shopper.
You can also learn more at Instacart Shopper Review: How much do Instacart Shoppers earn?
There are many other gig ideas that you can try out too, such as Uber Eats and DoorDash.
35. Real estate agent
Some teachers are real estate agents on the side of their full-time job as a teacher. This is because you can list and sell homes on your weekends, during breaks, at night, and over the summer.
Selling homes can be more difficult, though, as your clients may want your full attention during the day occasionally and you would be busy teaching, so this is something to think about.
36. Driver’s ed teacher
A common side hustle for teachers is teaching driving lessons to teenagers and adults. As a teacher, you may be able to check if the high school near you is in need of a teacher for this subject. Or, you can reach out to a local driving school to see if they are hiring.
Driving instructors make around $20 an hour more or less, depending on where you live.
Frequently Asked Questions
Below are answers to common questions about side hustles for teachers.
How can I make money on the side while teaching?
Some good side jobs for teachers include tutoring, freelancing, transcribing, blogging, selling lesson plans, and more.
What can teachers do to make extra money?
Teachers can do a lot of things to make extra money, such as jobs like tutoring, freelance writing, blogging, or creating educational printables.
What is a second career for teachers?
Second careers for teachers can include jobs such as educational consultants, curriculum developers, or even working in corporate training and development.
Do most teachers have 2 jobs?
Many teachers have two jobs. This is for many reasons, such as the typically low pay of a teacher as well as teachers wanting to make money while they are off in the summer.
How to make extra money on Teachers Pay Teachers?
Teachers can make extra money on Teachers Pay Teachers by selling lesson plans and printables.
How can teachers make money in the summer?
Teachers can make money when they’re off in the summer by teaching summer school, helping students with test prep, babysitting, selling lesson plans, working at a restaurant, working as a real estate agent, and more.
What to do after quitting teaching? How do you pivot out of teaching?
Quitting teaching and moving on to something else will take a few steps, and you can begin by thinking about your skills and interests. Then, start exploring different job options and connect with people in the field you’re interested in, attend industry events, and consider getting any certifications that you may need.
How can teachers earn extra income through online tutoring?
Sites like Tutor.com look for teachers to tutor students remotely, and you can even offer your services through social media.
How can a teacher make six figures by utilizing their skills?
While it’s not always easy for teachers to earn a six-figure salary, it is possible if you find ways to make extra income or by starting a business of your own.
What opportunities do music educators have for side income?
Side income ideas for music educators can include jobs like giving private music lessons or working as a weekend or evening instructor at a music school. Music educators can also sell lesson plans (I found some examples on Teachers Pay Teachers here).
What are some good side jobs for teachers?
I hope you enjoyed this article on the best side jobs for teachers.
Whether you are looking for side jobs for teachers from home, side jobs for teachers in the summer, or if you want to learn how to make passive income as a teacher, there are many ways to make extra money as a teacher.
Some of the best side hustles for teachers include:
Sell educational printables
Tutor online or in person
Sell your lesson plans
Coach a school sport
Start a dog treat bakery
Sell crafts on Etsy
Sell on Teachers Pay Teachers
Babysit
Teach English as a second language online
Teach summer school
Summer camp counselor
Grade papers
Work at a restaurant
Proofread
Blog
Freelance write
Transcribe
Flip used items for resale
Bookkeep
Sell Canva templates
Rover (walk and watch pets)
Virtual assistant
Food photographer
House sit
Rent out an unused room in your home
Rent your garage space
Rent a photo booth
Online surveys and focus groups
Voice over act
Mystery shop
Fitness trainer
Find random gigs on Craigslist
Deliver groceries
Real estate agent
Driver’s ed instructor
What do you think are the best ways for teachers to make extra money?
UK ‘mortgage meltdown’ looms amid ‘terrifying’ growth in arrears
Jump in borrowers unable to make payments with landlords particularly hit and ‘worse to come’
Analysis: will the Bank listen to business and halt rate rises?
Mortgage balances with arrears jumped by 13% in the second quarter of the year to the highest level since 2016, according to Bank of England figures that underscore the stress in the UK mortgage market.
Rising interest rates and unemployment over recent months have put pressure on household disposable incomes, forcing some families to cut or suspend their monthly mortgage payments.
Buy-to-let mortgage payers have also come under pressure in parts of the country where tenants are struggling with the cost of living crisis.
The Bank of England said the total value of mortgage balances which had some arrears rose to £16.9bn, up by 29% on the previous year and the highest since the third quarter of 2016.
Mortgage arrears are based on figures showing the number of borrowers failing to make payments equivalent to at least 1.5% of the outstanding mortgage balance or where the property is in possession.
Mortgage lending was also hit in the second quarter with gross advances falling by £6.3bn to £52.4bn. Year on year, mortgage lending slumped by almost a third, to the lowest level since the worst of the Covid-19 collapse in lending in the second quarter of 2020.
Lewis Shaw, founder of Mansfield-based Shaw Financial Services, told the news agency Newspage a “mortgage meltdown” is approaching, unless the Bank of England changes its approach.
Shaw said: “The speed at which mortgage arrears are increasing is terrifying and should give cause to pause at the next Bank of England interest rate meeting. This is dire data, and we know that it’s about to get an awful lot worse with 1.6m mortgage holders due to renew over the next 12 months at significantly higher rates than anyone has been used to for well over a decade.”
Simon Gammon, managing partner at the finance arm of estate agents Knight Frank, said the proportion of mortgage payers falling behind with payments remained low at just 1%, despite the “sizeable jump in arrears”.
He said: “That’s because the vast majority of outstanding mortgages were issued under the post-global financial crisis regime, which was much more stringent when it comes to affordability.”
However, while homeowners were more likely to make cuts to other spending before falling behind with mortgage payments, buy-to-let landlords may take a different view, he said.
“We are more likely to see arrears in the buy-to-let sector, where landlords face a unique set of challenges. If a landlord finds their mortgage is no longer affordable, or the rent no longer covers their outgoings, they only have two choices – sell or default. If they opt to sell, they may have to wait up to a year for the tenancy to end, unless they are willing to sell with a tenancy in place, which is more difficult.
“Landlords are also more likely to opt to default than those struggling with a mortgage secured against their main residence, so this is an area to watch,” he added.
Incoming Bank of England deputy governor Sarah Breeden said she agreed with her future colleagues on the monetary policy committee (MPC), which sets UK interest rates, that inflation may fall at a slower pace next year than expected, forcing the central bank to keep the cost of borrowing higher for longer than expected.
Breeden, who will replace Jon Cunliffe as the Bank’s deputy governor for financial stability after the MPC’s meeting next week, said there was also a risk that growth and unemployment will worsen.
“I will, after November, be very careful in balancing those two factors: the risk of inflation becoming embedded through more persistent, second-round effects, as well as the impact of tightening coming through,” she told parliament’s Treasury Committee in a hearing convened to approve to her appointment.
“The challenge right now is that wages are high and rising and there is a real risk that second-round effects means that this inflation becomes embedded,” she said, adding that in keeping a lid on inflation, “it is not our intention to cause a recession”.
The MPC is expected to raise interest rates by a quarter point to 5.5% on 21 September, raising the average mortgage payments by £3,000 a year for a household that refinances a 2-year fixed product.
Breeden said she expected inflation to be “around the [Bank of England’s] 2% target in two years’ time”.
On the market for a mortgage? If you’re new to the process, or you just don’t have a lot of mortgage knowledge, finding a mortgage on your own might feel daunting. That’s where a mortgage broker can come in handy.
Working with an expert can make your loan process simpler and help you get the best rate possible. If you’ve been wondering how to find a mortgage broker, let’s look at how to work with a mortgage broker and see if that’s right for you.
What Is a Mortgage Broker?
A broker works on your behalf to find the best mortgage lender and mortgage rates for your needs. An individual broker or a brokerage firm does the comparison shopping for you, so you don’t have to spend hours researching and applying for different types of loans. A broker likely also has access to wholesale mortgage lenders, whose rates are lower than retail rates.
How to Know If a Mortgage Broker Is Right for You
Whether a mortgage broker is right for you depends on your specific situation and goals. A mortgage broker can be very helpful throughout the home-buying process and help you get a better rate. Before you decide to work with a mortgage broker, take a look at your financial situation before taking the leap.
What Are the Advantages of Using a Mortgage Broker?
Sure, you could try to find a mortgage yourself. But if you have little knowledge of mortgages, it might be easier said than done. Working with a mortgage broker, on the other hand, can make the process a lot less complicated. Here’s what a mortgage broker can do for you:
Advise you on the best loan for you, based on their knowledge of available loans.
Shop around and compare different loans for you.
Apply for a variety of loans, rather than going through the process yourself.
Access to a wholesale mortgage rate.
If you have a low credit score, they’ll be able to find loan options for your specific situation.
Are There Any Reasons You Shouldn’t Use a Mortgage Broker?
In most cases, using a mortgage broker can be a pretty positive experience. There aren’t a lot of negatives as long as you take the steps to find a qualified, reputable mortgage broker. Otherwise, you could end up with someone who doesn’t pay attention to your needs.
Get matched with a personal
loan that’s right for you today.
Learn
more
If you’re pretty knowledgeable about the mortgage industry and have the time to research lenders and rates, you probably don’t need to use a mortgage broker. You can save yourself the brokers fee by doing the legwork yourself.
Does It Cost to Use a Mortgage Broker?
In exchange for their services, mortgage brokers charge origination and/or broker fees that you pay when you close on your house. Those fees are usually between 1% and 2% of your total loan and not something you pay separately. You can pay this fee all at once at the closing, or sometimes you can roll the fee into your mortgage loan.
Is It Better to Get a Mortgage From a Bank or a Broker?
Ultimately, the decision comes down to your preferences and whether you feel you can save time by using a mortgage broker. If you feel you can research loans and options on your own, you may prefer to work directly with a lender.
Mortgage lenders such as banks, credit unions and mortgage companies specialize in making mortgage loans directly to borrowers. Each has its own loans and rates. Because loan programs and qualifying standards vary from one lender to the next, it can be time-consuming for a homebuyer to shop around for rates and different loan options.
In today’s market, it’s not always clear if you’re working with a mortgage lender or a broker. Don’t be afraid to ask your mortgage company if it’s a lender or a broker. And don’t be afraid to ask if the company or individual is licensed and to research them with the Better Business Bureau, the Consumer Financial Protection Bureau, the National Association of Mortgage Brokers and the NMLS website.
How Do I Find a Mortgage Broker Near Me?
To find a mortgage broker near you, start by getting referrals from a real estate agent or two if you can. Experienced agents, such as those found on HomeLight, can refer you to lenders they’ve worked with in the past.
You can also ask friends or family members who you know have recently bought a house. If they used a broker and were happy with the results, that’s a pretty good sign. Looking for mortgage brokers online can work too, but make sure to check as many reviews as you can find.
When you’re looking for referrals, ask the following questions:
Did the lender describe the available loans in easily understandable language?
Did they lock in the rate you were promised?
Were there any hidden or unexpected fees that weren’t fully disclosed in the initial meeting?
If they still have the documents, see if the fees on the loan documents are the same as those originally disclosed on the initial Good Faith Estimate.
Was the broker or banker responsive and able to deal with problems quickly?
Questions to Ask Potential Brokers
If you decide to work with a mortgage broker, in addition to researching the broker, ask some questions up front so you know what to expect and can get a sense of what working with the broker will be like.
What is your experience as a mortgage broker?
Can you provide references?
How much will you make from the lender on this loan?
What are the names of some of your top lenders?
What is your process for working with clients, and what can I expect from you?
How long does it take you to respond to clients’ messages?
What can you do for me that another mortgage broker can’t?
Do you require money up front or simply take your fee at closing?
When you first meet with a broker, take a recent pay stub, your most recent bank statement, a driver’s license or birth certificate, a recent tax return and copies of recent credit card and other loan statements. A broker should ask you up front what you’re looking for, including the type of home, the type of loan, what your budget is and what your credit is.
Most importantly, when working with a broker, know that you’re the customer. The broker is there to serve your needs and help you. If at any time you don’t feel like you’re getting what you need, walk away.
Just weeks after New York-based digital lender Better Home & Finance Holding went public, Better issued pink slips to employees in early September in a new round of layoffs, Insider reported.
Better laid off about a quarter of its U.S. mortgage sales and origination team, according to the news outlet, citing two former employees who were affected by the latest downsizing.
The layoff news comes on the heels of Better going public via special purpose acquisition company (SPAC) Aurora Acquisition Corp. in August.
About 75 employees are left on the mortgage origination team in the U.S. as well as some employees in India, according to Insider.
While Better didn’t respond toHousingWire‘s inquiry about the number of affected employees, spokeswoman Jessica Schaefer told Insider the firm has more than 100 people left on the team.
Better plans to fill some vacant positions from the layoffs.
“As a publicly listed company, we’re focused on making prudent and disciplined decisions that account for market dynamics so that we can continue to serve both customers and shareholders for the long-term,” Better’s spokesperson said in an e-mailed statement to HousingWire.
“We are hiring more seasoned professionals who can sell in this tough mortgage environment and then making them 10X more productive through our continued investment [in] technologies such as Tinman and One Day Mortgage, which have created efficiencies that streamline and automate nearly every major function of homeownership,” the spokesperson said.
As of June, Better had 950 team members, a 91% decrease over an 18-month period from 10,400 in Q4 2021, according to its previous filing with the Securities and Exchange Commission (SEC).
While Better was an efficient refi shop during the pandemic years when rates hit record lows, the lender and other independent mortgage banks (IMBs) were hit hard by the Federal Reserve‘s monetary policy.
The digital lender reported a net loss of $45.5 million in Q2, an improvement from a net loss of $89.9 million the previous quarter.
In Q2, Better’s origination volume was $900 million across 2,421 loans, compared to production of $800 million across 2,347 loans funded in Q1.
When Better debuted on Nasdaq in late August, the SPAC deal unlocked $565 million of fresh capital for the unprofitable company.
The digital lender has pivoted its strategy from being a one-stop-shop to becoming a “mortgage-as-a-service” company or a white-label provider of mortgage tech.
“For things like homeowner’s insurance, title insurance, and Realtors, we’ve now just become a marketplace. We match the consumer with a partner capable of delivering the best product to them. So, we ended Better Real Estate for the sake of efficiency and savings for the consumer. We partner with best-in-class agents, insurance companies and title companies,” Better CEO Vishal Garg said in an interview with HousingWire in August.
Better will invest in tech-driven products like One Day Mortgage, a program that will allow customers to apply for a mortgage, get preapproved, lock their rate and receive a mortgage commitment letter within 24 hours.
“We are committed to further developing this technology during an interest rate environment where customers need it the most,” Better’s spokesperson noted.
Better was ranked as the 59th largest lender in Q1 2023, plummeting from the 19th in 2021, according to Inside Mortgage Finance.
Hurricane season comes around every year, but you don’t have to let it ruin your travel plans. One of the ways to protect your trip — whether it’s a wedding in Miami or a weeklong cruise in the Caribbean — is to buy hurricane travel insurance. It lets you travel without worrying about whether you’ll be covered in case a hurricane impacts your trip.
To make sure you’re prepared, here’s what you need to know about when hurricane season is, whether travel insurance covers hurricanes and what options are available to you to protect your reservations.
When is hurricane season?
Hurricane season is the time frame during which hurricanes are most likely to occur. According to the National Oceanic and Atmospheric Administration (NOAA), the hurricane season begins June 1 of each year and lasts through November 30.
While hurricanes are more likely to form during this six-month timeframe, it is possible for them to occur at other times of the year as well.
Hurricanes are storms that form over tropical or subtropical bodies of water, and therefore they typically impact the Caribbean, Central America and U.S. states along the Gulf of Mexico and the Eastern Seaboard.
Even if your destination isn’t in one of these areas, your plans could be impacted if you’re traveling through the area or if your plane is coming from one of the region’s airports.
Will travel insurance cover bad weather?
However, travel insurance generally doesn’t cover refundable reservations or other bookings that you can cancel without penalty.
Additionallywhen bad weather strikes, the details of your travel insurance policy matter. Let’s focus specifically on how coverage is affected during hurricane season.
Does travel insurance cover hurricanes?
Travel insurance can cover hurricanes, but there are numerous details that determine whether your trip is covered. These factors include when you booked your trip, when the storm was named and whether your trip has already started.
Once a storm has been named
When a tropical storm is named — which happens when a rotating pattern and wind speeds of at least 39 mph are detected — many travelers in potentially affected areas may rush to buy coverage for their trip.
However, once a storm has a name, any newly purchased policy likely won’t cover claims due to the storm. Typically, you need to purchase travel insurance at least 24 hours in advance of the storm being named in order for all of its benefits to apply.
Like any other insurance policy, travel insurance is meant to cover unexpected situations. Insurance companies don’t sell policies to cover a “foreseeable event” — like a named tropical storm or hurricane — so it’s best to purchase a travel insurance policy soon after confirming your travel plans.
While booking your trip
When booking flights, hotels, cruises and other travel reservations, you may be offered the option to buy a travel insurance policy. Some websites or travel agents offer options for booking travel insurance at the same time as your trip purchase.
Buying travel insurance for hurricanes during the booking process should cover claims if a hurricane later impacts your trip — as long as you’re not purchasing your travel when a storm is already predicted.
Before you depart
Even if you don’t buy travel insurance when booking your trip, you can buy it later on. Ideally, you’ll buy your travel insurance policy within 14 days of making your first trip payment.
Buying within the first 14 days ensures that pre-existing medical conditions won’t be exempt from coverage. If you don’t have any pre-existing medical conditions (or aren’t worried about that exemption), you can buy a travel insurance policy at any point prior to your departure.
During your trip
For travelers who’ve already started their journey, it is still possible to buy travel insurance. However, this option is typically limited to a small number of policies and may require waiting periods for certain types of coverage to kick in.
Other sorts of coverage, like trip cancellation, won’t be applicable because you’ve already started your trip.
Types of travel insurance
While the term travel insurance is used widely, there are multiple types of travel insurance to choose from. Here are a few types of travel insurance that you may come across when looking to buy a policy.
Single-trip
Single-trip travel insurance covers just one trip, as the name implies. These types of policies are good if you don’t travel very often or if you’ve made a big financial commitment on a trip that you want covered.
Those who have travel protections through a credit card or who book reservations with penalty-free cancellation policies may not need to buy travel insurance for all of their trips. But, a single-trip policy could be a good idea if you want to protect a trip with substantial prepaid, non-refundable reservations. They’re also useful when you want to customize the coverage for each trip.
Annual plan
Those who travel multiple times a year may be better off with an annual or multi-trip plan. These travel insurance plans protect all of your trips during the coverage period. They can be more cost-effective than buying multiple single-trip policies. Plus, you won’t have to remember to buy a policy every time you book a trip.
The downside of annual plans is that they may not be available for all travelers. For example, some insurers don’t offer annual plans for travelers age 70 and over. There are also typically limitations on the length of each trip in order to be covered.
Cancel For Any Reason travel insurance
Most travel insurance policies allow you to get reimbursed for a canceled trip only for covered reasons. If your reason falls outside of those guidelines, you won’t receive compensation. One way to get around this is to add Cancel For Any Reason (CFAR) coverage to your policy.
With CFAR coverage, you have more flexibility in canceling your trip while still being eligible to submit a claim. For example, even if a hurricane isn’t headed directly for your destination, you may decide to cancel your beach vacation because of predicted storm-related rain.
Keep in mind that CFAR cancellation coverage amounts are typically limited to 50% to 75% of your prepaid, non-refundable expenses. In other words, you won’t be fully reimbursed for your travel expenses even if you’re using CFAR coverage.
Best travel insurance for hurricane season
Travelers have a variety of travel insurance companies to choose from when buying hurricane insurance. Here are a few well-known companies that offer some of the best travel insurance policies for hurricane season.
Allianz Travel Insurance. Offers single- and multi-trip plans with 24/7 assistance.
Berkshire Hathaway Travel Protection. Offers specific hurricane protection for cruises and pays claims via your preferred channel in minutes.
Generali Global Assistance. Every policy includes a free-look refund period and 24-hour emergency assistance.
TravelGuard. Provides free concierge service to rebook missed flights and 24/7 emergency travel assistance services.
Do credit card travel protections cover hurricanes?
Numerous credit cards offer travel protections that may cover hurricanes. These benefits include trip cancellation, interruption and delay that may cover your flight, hotel, cruise and other reservations.
Rules for credit card coverage can vary substantially. Contact your credit card issuer or benefits administrator to ask how these benefits apply.
Hurricane travel insurance recapped
While you can’t purchase a hurricane travel insurance policy per se, many travel insurance policies can protect travelers during hurricane season. These policies cover trip cancellation, interruption and other situations that can occur when an unexpected storm impacts your travel plans.
However, there are rules about when you must buy your policy for coverage to take effect. Whether you purchase your policy while booking your trip or a week before departure, as long as it’s more than 24 hours before a storm is named, you should be covered if a hurricane rolls in.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
What a difference a few months make in the real estate market. Last summer, home prices were selling on the cheap in many cities across the nation.
Fast forward to spring, and the housing market kind of “sucks.” There’s really no other way to put it.
First off, there’s no inventory. This has been an issue for a while now.
Put simply, there’s just very little out there for an individual or family looking to buy a home, at least in the areas they might want to live.
Sure, there are those properties that have been on the market for months, but there’s a reason they’ve been on the market for months.
And yes, you can probably go to a new community built by a mega home builder and find a house, but it’ll likely be on the fringe of a major city next to empty dirt lots and tractors.
Bad Inventory Rising
Because there is a shortage of homes to buy
Prospective sellers are able to list their duds
Knowing that buyers are becoming increasingly desperate
And may overlook flaws or simply settle as a result of the slim pickings available
Now that the housing market is heating up and the media is (rather obnoxiously) getting on board, inventory is finally rising. Let’s call it an inevitable timing thing.
You see, there is real hope in the housing market. And while hope is good for some, it’s not good for buyers, just sellers who finally see the light after so many years in the dark.
Their real estate agents are giving them the green light to dump their properties while avoiding the lengthy short sale process and nasty credit score ding.
Today, these would-be sellers are able to push the values just that little bit more to sell them as standard sales, instead of going the formerly popular short sale route.
After all, a short sale made sense when there was no hope of getting out unscathed, but now that things are looking up, why not hang on a touch longer and avoid the negative ramifications of selling short?
Unfortunately, this means the individual on the other end is picking up the slack at an inflated price, instead of snagging a deal.
Competition Is Extremely Fierce
Not only are the available homes often less desirable
But the competition for these properties is much higher than normal
Making the housing market a really bad place to be as a buyer
Since no one wants to overpay for a home they don’t even love
Factor in the intense competition and you’ve got a double whammy on your hands.
We’re talking inflating the listing price to make it a standard sale, then receiving multiple bids that often push the final sales price above the original ask.
In other words, today’s buyers are acquiring properties with the future home price appreciation already built in.
And that assumes prices actually do increase – it’s not a foregone conclusion, just a rosy expectation at the moment.
I’m also seeing a lot of the notoriously bad properties rear their ugly heads again. Many of these homes sat on the market for months without a single offer, but now they’re going into escrow in a matter of days.
Something is definitely wrong with this picture. I don’t care how low mortgage rates are…
I’ll Wait for Another Dip
The housing recovery won’t feature home prices that go up in a straight line
Just like the downturn ebbed and flowed despite ultimately declining
There might be windows if you’re patient and keep an eye on things
But do expect home prices to keep on rising, and know that it’s okay to just hold off if you don’t find something you truly love
If I wanted to buy a home, I’d hang on and wait for the temporary madness to come to an end. There’s clearly a bubble mentality in the air again, with everyone and their mother bullish on housing.
Whenever that’s the case, it makes for a rather ominous situation. The increase in inventory involves a ton of previously underwater homes that no one wanted, even at lower prices. Or homes that were taken off market and abruptly thrown back on the MLS.
So why would you buy these same homes today at a significant premium? Because a magazine cover said, “Housing Is Back?”
The economy is still in tatters and things don’t exactly appear bright. If anything, a looming stock market crash seems to be on the horizon.
No, the sky isn’t falling, and housing is indeed on the mend after so many off years. But I do see the current cycle as an unsustainable period of growth that will likely unravel as the year goes on.
It’s going to be a bumpy road to recovery, not just a bottom followed by a surge back to new highs. We’ve seen this optimism in past years, only to watch the wheels fall off time and time again.
If you see something you love, go for it. If you’re worried about the missing the boom, you might want to sit down and reassess the situation.
Read more: Buying a home during a seller’s market.
Digital mortgage automation solution provider Floify launched verification of income (VOI) and verification of employment (VOE) waterfall technology that aims to save lenders and mortgage brokers time and reduce costs during the loan origination process.
“The new VOI and VOE features in the Floify platform enable mortgage professionals to view the results of multiple verification reports from different providers, starting with the least expensive one, rather than having to run each one individually,” the company said in a release.
While running employment and income verification reports can be an expensive step in the mortgage process, it’s designed to reduce loan risk during underwriting.
“This unique technology will help our clients reduce costs, which is especially important today as verification-related fees increased significantly in the past three years,” said Sofia Rossato, Floify’s president and general manager.
As these waterfall technologies can be run within the Floify platform, clients may bypass loan origination system add-on fees that often come with enabling new features, Rossato noted.
Founded in 2013, Floify — a subsidiary of Porch Group Inc. — is a software development company that offers a digital loan origination and point-of-sale system for the mortgage industry.
The Colorado-headquartered firm was acquired by publicly traded proptech company Porch Group, Inc. in an $87 million deal in 2021.
Floify’s platform features a secure communications and document management portal and an e-signature option between lenders, borrowers, real estate agents and referral partners, according to the firm’s website.
Floify’s latest release includes a single sign-on (SSO) functionality that aims to improve security and streamline the digital loan origination process for loan officers.
By relying on a single set of trusted credentials from widely-used platforms, such as Google or Facebook, borrowers are able to streamline account creation and management when joining new applications, the company said in June at the time of the SSO launch.
Guaranteed Rate’s PowerVP mobile app aims to enhance loan originators’ ability to keep in constant contact with customers anywhere, at any given time — 24/7.
The PowerVP app will create new loans; invite customers to complete a digital mortgage; send a one-click conditional approval letter; lock in rates; obtain real-time pricing and run a credit report, the company said in a release.
“It’s now entirely possible for us to qualify buyers for their dream home by the time they leave the open house. Agents submitting an offer at 8:30pm? Our sales team can get the pre-approval out at 8:35, away from their desks, all within this robust tool that will help them hustle smarter for our partners and deliver contract winning speed to our amazing customers,” Guaranteed Rate’s president & CEO Victor Ciardelli, said in a prepared statement.
The Chicago, Illinois-headquartered lender has more than 850 branches across the country and is licensed in 50 states and Washington, D.C.
The lender originated $10.6 billion in the second quarter, up from the previous quarter’s $7 billion — totaling $17.6 billion in the first six months of 2023, according to data from Inside Mortgage Finance.
Production volume in the first half of this year was down about 47% from the same period in 2022. As of June 2023, Guaranteed Rate had a 2.5% market share, IMF data showed.
In a shrinking mortgage market, the lender had two layoffs in August that affected tech staff as well as non-tech workers including loan originators, former employees who were affected told HousingWire.
The company had 2,149 sponsored LOs as of Thursday, according to the National Multistate Licensing System (NMLS).
Recent products launched by Guaranteed Rate include a down payment assistance program in July. G-Rate will provide 2% of the required 3% minimum down payment for a conventional loan or up to $2,000 — whichever is lower.
A new survey from Campbell Communications and Inside Mortgage Finance Publications revealed that real estate agents hold sway when it comes to choosing a lender.
In fact, the survey claims 45% of buyer decisions regarding which lender to go with are controlled or influenced by real estate agents.
So instead of shopping around for the best deal or using a family/friend’s referral, many home buyers instead follow the lead of their real estate agent, for better or worse.
This is especially important news for lenders, now that the refinance boom is finally coming to an end, and purchase-money mortgages are expected to take center stage.
The Mortgage Bankers Association expects home purchase lending to increase from $503 billion in 2012 to $585 billion this year.
And you better believe that banks and lenders will want to align with real estate agents to ensure they get as much of that business as possible.
After all, refinance activity is expected to slow tremendously, so they’ll need to make up for that lack of business elsewhere.
Agents Prefer Quick and Reliable Lenders
Real estate agents need to know their buyers can obtain financing
So they prefer to have some sort of control over the lender you choose
Or perhaps they choose one for you or at least direct you toward one
Which explains why they always have a preferred lender
The survey also noted that real estate agents prefer speed and reliability above all else, meaning they might not have a borrower’s best interests in mind.
Sure, it’s better to close than not, but at what price to the borrower? A preferred lender may be quick, but also offer mortgage rates a .25% to .50% above the competition.
And even then, there may still be hiccups, regardless of the relationship.
Real estate agents also indicated that they were big on meaningful status updates, seemingly to ensure loans close on time without delay.
This is especially important in today’s market, seeing that loan origination staff appears to be constrained, and demand is on the up and up.
In fact, two-thirds of the nearly 2,000 agents that responded to the survey said they wanted mortgages to close in 30 days or less.
That can be a tall order at the moment, given the fact that the average purchase transaction has been taking around to a month and half to close.
But there are certainly lenders who move quicker than others, and if a real estate agent can develop a relationship with one that offers competitive pricing, it could be beneficial for everyone involved.
Should You Use the Real Estate Agent’s Lender?
You can choose to be diplomatic and speak to their lender
Often they’ll ask that you at least get pre-approved though there’s no obligation
You don’t have to do either really
But it may not hurt to get another rate quote just to see if they can save you some money on your home loan
Often times when you make an offer on a home, the agent will ask you to get pre-approved with their “preferred lender.”
While it may be in your best interest to get the pre-approval, just to show you’re very serious about buying the property (especially when there are multiple bids), you don’t need to use their lender to obtain your financing.
If anything, you can chalk it up to another mortgage quote, along with the others you hopefully obtain while shopping around.
Just blindly going with the referred bank or lender clearly isn’t wise, because when it comes down to it, you really won’t know how competitive they are unless you shop your loan elsewhere.
Yes, it requires more work, and yes, the real estate agent will probably tell you their mortgage broker or lender is the best in the business, with the lowest possible rates.
They may even go as far as to use scare tactics to get you to use their guy or gal.
But you may regret using them after the fact, especially if they weren’t even able to fulfill expectations on the customer service front.
In other words, get pricing from their preferred lender and see how it stacks up with your other offers, then go from there.
That way you can appease the agents involved and make sure you’re doing your due diligence.
Read more: How to get a better deal on your mortgage rate.