Old Republic President and CEO Craig Smiddy commented on the divestment, “We are pleased to announce this definitive exit from the mortgage insurance business. Since placing this business in run-off in 2011, we have been able to preserve significant value for shareholders.” Read more: Mortgage market blues – how to weather the storm Smiddy also … [Read more…]
Welcome to Episode 9 of The Kings Table Podcast, a captivating new show hosted by Ashish, Mike, Aaron, and Matt. Join us for an unfiltered, authentic experience as we gather weekly to delve into the raw discussions that drive our lives, businesses, economics, and the world.
Meet the hosts:
1. Mike (The Sage) Ayala is an accomplished investor, speaker, and podcast host, who stands at the helm of Investing for Freedom, guiding busy professionals and entrepreneurs toward the path of genuine liberation and optimal living. 2. Ashish (Hostess with the Most-est) Nathu is a founder and CEO, entrepreneur, real estate investor, triathlete, and host of the Rich Equation Podcast. 3. Matt (Hero of Hospitality) Aitchison is a distinguished real estate investor, captivating speaker, and committed philanthropist. 4. Aaron (The Trend Spotter) Amuchastegui is a seasoned real estate virtuoso with a remarkable track record of over 1,000 house transactions, predominantly acquired through astute foreclosure purchases at courthouse auctions.
In this episode, we navigate the complex terrain of economics, wealth building, and real estate investment. We launch into a comprehensive discussion on inflation, dissecting its impact on the purchasing power of the US dollar, particularly since the creation of the Federal Reserve. We explore how inflation and leveraged debt play pivotal roles in wealth building and empower you to take control of your financial future. We share our observations regarding real estate investing trends and explore the concept of finding opportunities amidst crises.
Tune in to gain a deeper understanding of inflation, wealth creation, and the intricate world of real estate investment.
Highlights:
00:39 – Kicked off the episode with the topic of inflation 06:35 – The purchasing power of the US dollar since the creation of the Federal Reserve 19:15 – Impact of inflation and leverage debt in wealth building, understanding the system so you can be in control 27:28 – How people wanting to build wealth see or think about inflation 34:34 – Make more fake money and invest it in real assets 50:24 – Observations of what each of the hosts is seeing from people on the topic of real estate investing 1:05:34 – Don’t waste a crisis, learn to see opportunities in times of crisis 1:08:31 – Union negotiations 1:27:27 – Investing in real estate 1:32:33 – Creative ways to structure deals
Connect with us!
We eagerly await your feedback about the show! Kindly share your thoughts via text message at this number: (844) 447-1555.
Mike Ayala: Instagram: https://www.instagram.com/themikeayala/ YouTube: https://www.youtube.com/channel/UCoa4pNSAYxBM6nSn2jCrPYA Website: https://investingforfreedom.co/
Inside: Are you struggling to make ends meet on a low income? This guide will teach you how to budget money effectively on a low income, so you can live a comfortable life without having to skimp on important expenses.
Let’s face it… Navigating through the budgeting on a low income can often feel overwhelming.
The fear of insurmountable bills, the anxiety associated with rising living costs, and the overall foreboding nature of budgeting often make for a persistently stressful experience.
However, it is crucial to understand that you are not alone in this journey. I have been in your spot as well as many Money Bliss readers.
Regardless of how daunting the budgeting task may appear, we truly believe that with the right guidance and adherence to solid financial principles, you are capable of achieving financial peace of mind.
This process will simply require patience, persistence, and strategic planning. This guide aims not only to shine a light on the struggles of budgeting with a low income but also to offer a beacon of hope.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
How to Budget Money on a Low Income
While it’s true that budgeting with a low income can be tough, proper money management can make it doable.
When you have less disposable income, it leaves you with less leeway in your budget. That’s why you have to be accountable and meticulously plan your spending to ensure financial stability.
So, let’s dig in and you can find success.
Step #1 – Figure out Your Monthly Income
Developing an effective budget starts with understanding your monthly income.
Here’s a step-by-step guide:
List out all income sources: This includes all your regular paychecks, part-time jobs, side hustles, social security, child support, or any other form of income you have. If your income is irregular, say from commissions or seasonal work, it’s advisable to base your budget on your lowest monthly income.
Account for taxes and deductions: To get an accurate picture of your disposable income, you need to factor in taxes and deductions from your earnings. You need to make sure you understand the difference between gross pay and net pay.
Include irregular income: If you occasionally get money from gifts, or sporadically earn from passive income sources like investments, be sure to include these too. As these are inconsistent, it is best to fund discretionary spending with this money.
Personally, I recommend using your net income with budgeting. This will give you an accurate budget that you can truly follow.
This knowledge is powerful when it comes to effective budgeting.
Step #2 – Define your bills and Expenses
Knowing how much you spend and what you spend your money on is another crucial step in budget planning.
The key is to define ALL your bills and expenses. Here are the personal budget categories that cover almost everything you can think of.
Now, you must do the following:
Identify your fixed costs: These are basics that you have to pay monthly and remain fairly constant, such as rent, car payments, and student loans.
Consider flexible costs: These expenses vary from month to month. Examples include groceries, transportation, electricity, water, and gas bills.
Remember periodic costs: Some costs only appear annually or semi-annually. For instance, insurance premiums, car registrations, and property taxes. It’s important to set aside money each month to cover these expenses when they arise. A sinking fund is great for these expenses.
Account for daily spending: Beyond fixed and flexible bills, consider your day-to-day expenses like shopping, subscriptions, and entertainment. Be honest about the little expenses. It’s often the small, frequent purchases that can derail a budget.
Prepare for unplanned costs: Finally, remember to budget for unexpected expenditures such as car repairs or medical bills.
By defining and categorizing your bills and expenses, you can see where your money is going and better manage your spending.
Step #3 – Reach a Zero Budget
A zero-based budget is a strategy that requires you to assign every dollar you earn to a specific expense or savings category, with the goal of having your income minus your expenses equal zero by the end of the month.
Write down your income: From the step before, you already know your total monthly income.
Subtract your expenses: Subtract the total of your monthly expenses (including savings) from your total monthly income. If you’ve correctly accounted for your income and expenses, the result should be zero. This is what it means to have a “zero-based budget”.
Balance the budget: If your income and expenditure don’t balance, adjust your variable expenses and other discretionary spending until they do. This can involve cutting back on nonessential overspending, like takeout meals or unnecessary purchases.
Allocate every dollar: With your budget balanced, each dollar should now have a purpose, whether it’s paying bills, going into savings, or providing for your daily needs.
Many people struggle to hit a zero based budget on the first try. It is common for your expenses to be higher than your income. Thus, a no spend challenge may help you identify what is important to actually spend your money.
Reaching a zero-based budget equips you with a clear picture of your financial status.
Thus, it allows you to use your money purposefully and prevents unnecessary spending. This way, even with a low income, you can still meet all your needs and work towards your financial goals.
What do you do if your budget shows your expenses are more than your income?
When your monthly spending exceeds your monthly income, immediate attention is needed to prevent worsening financial issues. Before panic sets in, consider taking the following steps:
Analyze your budget: Reevaluate and scrutinize your budget. There might be necessary adjustments overlooked or expenses incorrectly categorized. This will give you a clearer understanding of where your money is going.
Prioritize essential expenses: Allocate money to necessities like housing, food, utilities, and debt repayments first. Other less necessary expenditures, like entertainment and dining out, can be reduced or eliminated.
Reduce expenses: After prioritizing, identify areas where cuts can be made. Impulse buys, unnecessary subscriptions, or expensive habits might need to go.
Increase your income: Consider part-time jobs, side hustles, selling unused items, or picking up freelance work to bring in more money.
Seek advice if debt is weighing you down: As a last resort, you may look at ways to lower your interest rate on your debt. These strategies like debt consolidation or restructuring could help make your situation more manageable.
Remember, this situation, while stressful, is not permanent. With careful planning and disciplined execution, you can turn this around and regain financial stability.
Taking Control of Your Budget When Income Doesn’t Cover Your Expenses
Now, this is where you need to learn to manage your money wisely. You are in control of where you spend your money.
Many truly believe with a higher income all of their financial problems go away. From my research, most people end up with bigger money problems, the same spending habits, and still living paycheck to paycheck even with a higher income.
So, let’s reign in what you can do today to make your budget feasible.
1. Prioritize Essential Bills and Expenses. The key is to identify which expenses are truly essential to your livelihood. All remaining expenses, like entertainment or eating out, should be considered secondary and only met after the primary expenses have been satisfied.
2. Participate in a No Spend Challenge. A No Spend Challenge not only helps you save money rapidly but also makes you cognizant of your spending habits, helps identify non-essential expenses, and guides you towards a minimalist, sustainable lifestyle. Start with a no spend month.
3. Reduce your Housing Expenses. Housing costs can be one of the most significant expenses. Look at ways to downsize, negotiate rent, refinance your mortgage, or get roommates. Or even housesit permanently.
4. Be Cognizant of Bad Spending Habits. Some examples include impulse purchases, expensive convenience, not comparison shopping, or paying too much. By becoming aware of your spending habits and making conscious choices, you can break the cycle of unnecessary spending and start saving money with the penny challenge.
5. Skip the Expensive Coffee Shop. Choosing to forgo your daily coffee shop run can result in surprisingly significant savings. Implementing just this one change could save you over $600 a year!
6. Use Public Transportation to Save Money. The costs of owning a car – gas, maintenance, parking, and insurance – can quickly add up. So, look for public transportation as an alternative or even cycling, carpooling, or walking.
7. Take Advantage of Free or Cheap Entertainment. When living with a low income, entertainment expenses can quickly eat into your budget. Good news for you! There are plenty of things to do that don’t cost money.
8. Cut Back on Grocery Spending. By implementing simple strategies such as meal planning, cooking at home, cutting down on processed food and reducing waste, you can maintain a healthy diet while significantly reducing your grocery bills. Don’t forget to use those discounts and coupons!
9. Stick to Your Shopping List. Preplan your purchases before stepping into a store. This is a powerful tool in curbing those impulse purchases which can inflate your expenses substantially.
10. Start Meal Planning. Meal planning is a practical and economical way to manage your food budget. By planning your meals for the week, you can control your grocery spending and eliminate waste.
11. Stockpile Goods That Will Stay Stocked Up Long Term. Remember, the goal of stockpiling is to save money, not to transform your home into a supermarket. Purchase enough to last a few months and focus on items that you’re certain to utilize. Here are the best foods to buy when broke.
12. Pack Your Own Lunch and Skip Eating Out. With an average meal out costing around $10, you could easily save $200 a month by packing lunch from home. Over a year, that’s $2,400 in savings!
13. Drink Water and Avoid Processed Foods. Shifting dietary habits can be a significant change, but your commitment to a healthier lifestyle can reap both health and financial dividends. It’s an investment in a life of wellness and economic sustainability.
14. Take Advantage of Discounts when Shopping. Remember, the goal of shopping with discounts is to spend less on what you need, not to buy more than you need. So, make sure to use coupons wisely, shop sales, buy off season, and use Cashback apps like Rakuten and BeFrugal.
15. Avoid Impulse Purchases. By avoiding impulse purchases, you give your budget room to breathe and create an opportunity for savings. This makes a significant difference over time, especially when money is tight.
16. Apply for Discounts on Utilities and Services. Many utility companies provide low-income home energy assistance programs. The same is true for internet service. Contact your service providers to check your eligibility.
17. Get Free or Discounted Goods Through Charities. Charities, faith, professional, and local organizations often offer grants for people experiencing financial hardship. Utilizing them can be a lifetime as they help you stretch your budget further and provide necessary support in times of financial struggle. Don’t be afraid or too proud to ask for help when you need it.
18. Get Outside. Reconnecting with nature can provide you with cost-free entertainment and a sense of tranquility that’s hard to find elsewhere.
19. Avoid Unnecessary Expenditure. While each person’s definition of “unnecessary” may differ, the key to budget management is curbing expenditures that don’t add substantial value to your life. A common culprit could be brand-name goods or late fees.
20. Start the Practice of Saving with a Mini Savings Challenge. The Mini-Savings Challenge can pave the way to a habit of saving regularly, even on a tight budget. Essentially, this challenge consists of setting aside a small amount of money each day or week, gradually increasing the amount over time.
21. Show Gratitude. While it may seem less directly related to finance, practicing gratitude is indeed integral to efficient budgeting and financial wellness. Remember, financial success isn’t just about making more money. It’s also about appreciating what you have and recognizing the steps you’re taking towards your goals.
Inciting Additional Income Avenues
Okay, this section is how you take a low income and increase your money. While cutting back spending is helpful, creating more money will help you to reach money success faster. This will take the strain off.
1. Look for Ways to Earn Extra Income
Boosting your income, no matter how minimal the increase, can help cover necessary costs and elevate your financial standing.
Here are some ideas using your current job:
Work Overtime: If possible, consider getting more extra hours at your current job. Earnings from overtime or extra shifts can be significant.
Negotiate a Raise: If you’ve been with a company for a while and demonstrated your worth, it might be time to discuss a raise. Prepare well for this conversation with evidence of your productivity and value.
Every extra dollar earned can be put towards savings, paying down debt, and creating better financial stability.
2. Leverage Side Hustles for Extra Money
Side hustles have become an increasingly popular way to earn extra money online in your spare time. They allow for flexibility and can be a great supplement to your current income.
Start a Side Hustle: These can be a great way to make use of spare time to earn extra cash. This could be anything from driving for a rideshare company, offering freelance services, tutoring, delivering food or groceries to selling homemade goods online.
Sell Unused Items: You probably have items in your home that you no longer need. Selling anything from clothes to electronics or furniture can be a good source of income.
Passive Income: From writing an eBook to renting out a room in your house or investing in stocks, creating passive income streams can provide extra money over time.
Remember to choose a side gig that fits your schedule, interests, and skill set. Not only could it bring in extra money, but it could also turn into a passion project, making the work feel less like a chore.
3. House Sit for Extra Income
House sitting can be a viable option for those looking to generate extra income, especially if you’re flexible with your time and location. It typically involves looking after someone’s home (and sometimes their pets) while they’re away.
Not only is house-sitting a way to earn money, but it can also offer a free place to stay. Hello – you just lowered the biggest expense in your budget. However, remember that taking care of someone else’s home is a huge responsibility, so only take on tasks you’re confident you can handle.
Get started by building your profile on Trusted Housesitters.
4. Items You Don’t Need Anymore
Selling items you no longer need or use can both declutter your home and add to your income. It doesn’t just have to be big-ticket items; even small routine household items can yield returns.
While this may be difficult to do, look for items in good condition that you and your family no longer need or use. If you have extra baby stuff, you can rent it on BabyQuip for extra money.
Remember, while selling items won’t provide a consistent income, it can be a great one-time source of extra cash especially if you have these highly popular flipping items in your house.
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5. Pick up a Part-time Job
When you’re on a limited income, picking up a part-time job can be a reliable way to supplement your earnings. You are trading your time for money.
Many of these jobs that pay weekly offer valuable experiences, skills, and possibly even room for growth and advancement. Remember to save and plan for any taxes due as a result of your increased earnings.
Smart Use of Technology in Budgeting
Taking advantage of personal budgeting tools can make managing your finances easier. They can help track expenses, create a budget, and set saving goals. Here are some popular options:
You Need a Budget (YNAB): YNAB helps you create a budget and live within your means, educating you on effective money management along the way.
Simplifi by Quicken: This app crunches the numbers to show how much money you have for day-to-day spending after accounting for bills, goals, and savings.
Empower: This free tool offers a comprehensive financial dashboard that includes budgeting features and investment tracking.
Tiller Money: If you want a more manual approach, you can use Google Sheets or Excel to create a customizable budget spreadsheet.
Remember, the best tool is the one you use consistently. Try a few options to see which one best meets your needs and preferences. Every tool has its pros and cons, but all aim to help you control your finances effectively.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
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YNAB
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Option to manually add and upload transactions from accounts each month.
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Access Paychecks Early with Digital Banking Apps
With the rise of digital banking, access to innovative financial tools like early direct deposit has become more accessible, even for those with low incomes. These services can be crucial lifelines between paychecks or in case of emergencies.
Here are a few platforms that offer such services:
Chime: Once you set up direct deposit with Chime, you may get your paycheck up to two days earlier than at a traditional bank.
Current: Current, a mobile bank account, provides users with paychecks up to two days in advance.
Varo: Varo also offers early direct deposit for its users, helping you gain access to your money more quickly.
Clair: Clair’s on-demand pay solution lets you advance a portion of your paycheck before payday. This can be particularly helpful when navigating financial crunches.
It’s important to note that while accessing your paycheck early doesn’t give you extra money, it does provide more flexibility in managing your finances and can help avoid overdraft fees or high-interest loan options in times of need. As with any financial tool, it’s essential to use early paycheck access wisely and not rely on it for regular spending.
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FAQs
Saving money on a low income can seem challenging, but a few strategic changes and smart habits can make it achievable.
Engaging in a money-saving challenge can be a motivating way to encourage disciplined saving, helping you to creatively manage your finances and significantly boost your savings plan over time.
Remember, the key to saving on a low income is to stay consistent, patient, and adaptable in your approach.
Surviving on a low income budget can be challenging, but strategic planning and careful spending can help you manage your finances effectively.
The focus as Dave Ramsey likes to say is on your four walls – food, utilities, shelter, and transportation.
Remember that it’s okay to adjust your budget as you go. Circumstances change, and so should your budget. Review your budget regularly to ensure it’s still working for you and adjust as needed.
Budgeting when you’re broke might seem like an uphill battle.
The key is to make sure you stick to your budget and track your spending consistently. Don’t hesitate to reach out to local charities, government programs, and non-profit organizations for assistance.
Remember, being broke is often a temporary situation, and even small steps towards better budgeting can compound into big changes over time. Try to stay positive and focused on your financial goals.
Now, How do you Survive on a Low Budget?
Surviving on a low income involves careful planning, budgeting, and making the most of available resources. While it may seem challenging, it is indeed possible.
Every small step you take towards frugal living, such as sticking to a budget, reducing unnecessary expenses, or earning extra cash, can lead to considerable savings in the long run.
Remember, it’s also important to invest in yourself – whether that’s asking for a raise at work, learning a new skill, or starting a side hustle.
The journey of living on a low income can be tough, but it also offers an opportunity for creativity and gratitude for the essential things in life. With a positive mindset, some patience, and careful budgeting, you can not only survive but thrive, even on a low income.
The goal isn’t to just get by but to build a financially stable future.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
As far as home décor options are concerned, candles have always been preferred. It is because they are ideal for creating a vibe of serene ambiance while adding some mystic appearance and smelling amazing at the same time. Beautiful votive candle holders, paired with fragrant candles, help in creating a relaxing atmosphere while serving as welcoming.
Image by 🌸♡💙♡🌸 Julita 🌸♡💙♡🌸 from Pixabay
In addition to this, votive candle holders are available in a wide range of shapes and sizes. At the same time, candles of varying fragrances and sizes used individually or in clusters can serve as decorating pieces in several ways.
Votive Candle Holders in Bedrooms and Living Areas
Light some candles on elongated decorative candle holders or place the candles of varying sizes in a cluster, and voila, your place attains a dressed-up look. Look for a perfect corner in your room and place the candle holder suitably to light up your favorite nook.
You can consider placing floating candles in metallic silver or gold hues on console tables, or on a cabinet to create a warm glow while adding notes of freshness to uplift the overall senses. You can also consider adding colorful beads in water to bring about the creative touch. Yet another creative idea is to place fragrant candles in decorative lanterns or brass candle holders indoors for the perfect elegant look.
Image by Агзам Гайсин from Pixabay
Designer Candle Holders on Kitchen Slabs and Dining Table
Candles in transparent glass can appear immensely attractive. Prepare a beautiful, organic atmosphere by keeping candles on the dining table or across decorative mirrors such that they reflect even more elegantly. The presence of crystal or reflective candle holders appears luxe while help in displaying the actual pattern or color on the candles. On the dining table, blend designer candle holders with flower vases, hard-cover books, and you have achieved the perfectly-looking dining table.
Elaborate Candle Holders in Bathrooms
Wish to impart your bathroom an eclectic, decorative touch? Fragrant, designer candles in bathroom décor can make your small space appear aesthetic effortlessly. Group your favorite candles in a candle holder in a corner and freshen up your area in no time.
You can consider using pillar candles in bright hues to add some classic style statements. Candles placed in assorted heights by your bathtub can be the ultimate shining star. Opt for votive candle holders in bathrooms to enhance the overall look.
Creating Candle Centerpieces
Centerpieces in any home décor help in adding a touch of unmatched charm. Whether you are revamping the sofa table or your dining table, you can leverage pillar candles in varying heights and shades, candles in tins, or candles in decorative glass candle holders that complement the overall color scheme. Additionally, you can think of utilizing candles that appear like balls or square-shaped, or even stars to add immense character to the existing space.
Moreover, you can think of placing a tray for framing the centerpiece while finishing the look with decorative pebbles or dried flowers. You can also infuse fragrance to the space by using fragrant candles.
Candles, in the form of dining table centerpieces, appear immensely decorative. At the same time, these also help in adding an inviting feel to the existing space. The entire look is simple to put together and can be easily changed by removing or adding decorative pieces to the arrangement.
Pleasant Porch Lighting and Decorative Candles
A beautiful candle arrangement on a patio table is ideal for your perfect time outdoors. Nothing will beat the vibe of a starry night within the warm glow of the candle as you sip your favorite drink under the moonlight.
Dangling Candle Lights to Elevate Your Home Interiors
Dangling lights in your home décor can infuse a stunning effect to any space. Whether you consider buying them from a store or designing them yourself, you have multiple options. You can also consider purchasing decorative candle lanterns to create the look you want. The idea is not just for interior decoration. You can also consider creating your oasis outdoors with the help of dangling candle lighting.
Window Appeal with Fragrant Candles
Do you enjoy spending your leisure time sitting by the window watching people, reading books, or relishing nature? You can consider adding warmth by placing candles across the window pane. There is nothing more appealing than the warmth of the hanging candles, preferably in decorative candle holders.
Conclusion
Decorative your home beautifully with candles while creating the right ambiance and mood throughout. Explore the distinctive range of exotic fragrant candles and unique candle holders at Pure Home & Living. It is a one-stop destination for exotic and luxurious home décor items and interesting accessories for enhancing your home interiors in no time.
The housing market in Boise is always evolving. As of the latest data, the Boise housing market presents a somewhat competitive landscape for prospective homebuyers, with houses receiving an average of two offers and being sold in around 21 days. This pace underscores a brisk but not frenetic market, allowing buyers some breathing room to make the right decisions at the right time.
The Boise housing market at a glance
A key indicator of market health, the median sale price of a home in Boise stands at $515,000, marking a modest year-over-year increase of 1.0%. This gentle price ascent reflects a market that is growing steadily, avoiding the pitfalls of sudden spikes or declines that can lead to instability.
Even more telling is the median sale price per square foot, which has seen a slight decrease of 3.8% since last year, possibly pointing to larger homes entering the market or a shift in the types of properties being sold.
The volume of sales tells a more nuanced story. In 2023, Boise saw 227 homes sold, a decrease of 19.8% compared to the previous year. This drop could reflect a variety of factors, including a potential shortage of inventory or a change in buyer sentiment. Nevertheless, the median days on market — a metric indicating how long homes are listed before a sale is agreed upon — has dropped from 34 to 21 days year-over-year, revealing that while fewer homes are being sold, those that are listed are moving quickly.
Competition in Boise’s housing market
Boise’s real estate market competitiveness is further clarified by the Redfin Compete Score™, which rates areas on a scale of 0 to 100, with 100 being the most competitive. Boise scores a 61, illustrating a market where homes often receive multiple offers but typically sell for about 1% below the listing price. Homes categorized as “hot” may sell for around the list price and go under contract in as few as 5 days, showcasing the desirability of certain listings.
Furthermore, the sale-to-list price ratio in Boise is 99.1%, up 1.2 points from the previous year, indicating that homes are selling close to their asking prices, a sign of a healthy market where there is a good balance between buyer demand and seller pricing.
Investing in Boise real estate
For those considering Boise as their next home or investment, these figures paint a picture of a market that is competitive but not overheated. The city’s real estate market is managing to keep pace with demand without succumbing to the volatility seen in other regions. This suggests a sustainable growth trajectory for Boise’s housing sector, making it an equally attractive proposition for buyers and investors.
Find a beautiful house in Boise
The Boise housing market is characterized by a stable yet competitive atmosphere, with homes selling relatively quickly and for near asking prices. While the number of homes sold has seen a downturn, the overall health of the market remains robust, reflected in the consistent sale prices and the competitive nature of listings. As Boise continues to attract attention for its quality of life and economic opportunities, its housing market is poised to maintain its steady course.
Renting in Boise
Turning our attention to the rental market in Boise, it also reflects the city’s broader economic trends and the influences affecting the housing market.
Rental markets in cities like Boise are typically influenced by several factors including the availability of housing, population growth and economic conditions. As home prices rise modestly, it can signal a corresponding shift in the rental market. Potential homebuyers who are priced out of purchasing may turn to renting, which can increase demand for rental properties and, subsequently, rental prices.
Average rent in Boise
In markets characterized by a competitive housing environment with rapid sales and close-to-list prices, rental properties often see high occupancy rates. Landlords and property managers may have the leverage to ask for higher rents, especially if the local economy is strong and the population is growing, which seems to be the case with Boise.
How the housing market affects the rental market
Additionally, when home sales decrease, as noted with the 19.8% year-over-year drop in Boise home sales, the rental market might absorb those who are waiting for the right time to buy or who prefer the flexibility that renting offers. This can lead to a decrease in rental vacancies, further pushing up rental prices.
However, it’s important to note that rental prices are also subject to regulatory changes, like rent control laws and the development of new rental properties, which can increase supply and potentially stabilize or lower rents.
Apartment rent ranges in Boise
$501 – $700: 1%
$701 – $1,000: 4%
$1,001 – $1,500: 29%
$1,501 – $2,100: 35%
$2,101+: 30%
Considering these factors, those looking to move to Boise should be aware of the potential for a competitive rental market. Prospective renters may face quick turnaround times on rental listings and should be prepared for a possibly dynamic pricing environment. Like the housing market, the rental market in Boise is likely to be resilient, reflecting the city’s economic stability and appeal as a growing urban center in Idaho.
Find the best spot for you in Boise
Those considering Boise as their home should weigh the pros and cons of renting versus buying in a market that is robust and thriving, with both sectors offering opportunities and challenges that reflect the city’s desirability as a place to live and work.
If you’re ready to settle down in Boise, find your home in just a few clicks with Rent.
Embarking on the journey of purchasing a home in the Badger State is an adventure filled with anticipation and, often, a measure of uncertainty. Central to this process is the pivotal step of a Wisconsin home inspection—an essential safeguard that delves beneath the property’s surface, ensuring that your future haven is as sound in structure as it is inviting in appearance. This Redfin article will explore the ins and outs of Wisconsin home inspections, covering everything from their importance to specialized inspections, requirements, and costs. So whether you’re buying a home in Madison or a home in Green Bay, keep reading to learn everything you need to know about getting a home inspection in Wisconsin.
Why should you get a home inspection in Wisconsin?
Buying a home is a big investment, and getting a home inspection is a crucial step in protecting that investment. A professional home inspector will thoroughly assess the property, identifying any hidden issues, structural concerns, electrical and plumbing problems, and other potential red flags that may be missed during a casual walkthrough. This complete examination provides you with valuable insights, negotiation leverage, and peace of mind, ensuring you make an informed and confident decision about your new home.
“In Wisconsin, a home inspection is a smart step for buyers and sellers alike,” says Patrik Neuwirth of Inspect Karma, a Milwaukee-based home inspector. “It serves as a critical safeguard, uncovering potential issues from seasonal wear due to the state’s harsh winters and humid summers, to more hidden and costly problems. An inspection provides transparency and confidence, ensuring that one of life’s biggest investments is sound and secure.”
Are there any specialized inspections that Wisconsin buyers should consider?
While a standard home inspection covers the fundamentals, Wisconsin buyers should be aware of specialized inspections tailored to specific concerns. These include radon testing, especially in areas with elevated radon levels, mold inspections for properties prone to mold growth, lead paint assessments in older homes, and well and septic inspections in rural areas with these systems. These specialized inspections are key for ensuring your home is safe and free from potential hazards.
1st Choice Inspection in Milwaukee emphasizes the importance of sewer drain scoping, especially for houses built before the 1970s because tree roots can cause issues.
Are home inspections required in Wisconsin?
In Wisconsin, home inspections are not mandatory, but they come highly recommended for all homebuyers. While not required by law, certain lenders may impose inspection requirements as part of the mortgage approval process, such as pest inspections or appraisals. It’s important to note that despite the lack of mandatory inspections, opting for a home inspection is a wise and cost-effective choice.
Donn Anderson of Anderson Home Inspections advises that although inspections aren’t required in the state, they are more than worth the cost. It’s not uncommon for homebuyers to incur thousands of dollars in surprise expenses because they decided against getting a home inspection.
How much does a home inspection cost in Wisconsin?
The cost of a home inspection in Wisconsin can vary based on several factors, including the property’s size, age, location, and the scope of the inspection. On average, you can expect to pay between $300 and $500, with specialized inspections incurring additional expenses. While it may seem like just another added cost, the investment is well worth the peace of mind and potential long-term savings it provides.
Can you sell a house in Wisconsin without an inspection?
Wisconsin does not require sellers to conduct a pre-listing inspection, but many opt for this proactive approach. A pre-listing inspection can help find and address issues upfront, making the selling process smoother and more attractive to potential buyers. While not mandatory, it’s a strategic move for sellers looking to increase their home’s market appeal.
Wisconsin home inspection: the bottom line
In the world of real estate, knowledge is power. A home inspection in Wisconsin is your key to making an informed decision when purchasing a property. It provides you with insights into the home’s condition, negotiation power, and peace of mind, ensuring that you are investing in a safe and sound property. Regardless of where in the state you’re looking to move, a home inspection is a wise investment in your future.
The economic trifecta of rising interest rates, persistently high home prices and record undersupply is making homebuying increasingly challenging.
Every loan on your book matters more than ever; the next lead you have is your most important. The current business environment has left originators scratching their heads and trying new things.
Luckily, the mortgage industry is cyclical, so let’s take a look at how you can turn a negative into a positive and grab clients’ attention through effective marketing, ultimately growing your book while others’ shrink.
As a pioneer in the non-qualified mortgage space, Angel Oak has seen firsthand how some of the best originators market their business when prices rise and volumes drop. Below are a few ways originators can best present themselves to real estate agents and stand out in a saturated market.
Recognize the value of lunch and learns
When every loan matters, the value of in-person meetings can’t be overstated. Right now, people are craving face time, so why not offer real estate agents and networking peers that opportunity?
Some of the most effective mortgage originators are differentiating themselves in the crowded market through “lunch and learn” sessions. These impactful one-hour gatherings leverage the intimate setting to provide a lot of value, both for your business and for your referral network.
Lunch and learns serve as more than just a networking event. They are also a chance to exchange knowledge and demonstrate innovative non-QM products, which can sometimes be a daunting experience for the uninitiated.
Through these roundtable discussions over lunch (or even dinner), you can help demystify non-QM products while also establishing your credibility in the industry. Think of the cost of the meal as an investment in deepening your relationships, fostering a sense of community and delivering valuable information to help your clients.
Meeting in person adds a level of trust and rapport that virtual meetings simply can’t match. Face-to-face interactions often lead to more open discussions, giving originators greater insight into real estate agents’ specific needs and challenges — and more opportunities to present valuable solutions that can help you stand out from the crowd.
While Facebook, X and Instagram remain staple platforms, branching out to newer social media avenues can yield impressive results.
TikTok, for example, has rapidly emerged as a powerful tool for businesses and presents the opportunity to connect with a massive audience of younger generations eager to learn about home buying.
Crafting engaging video content and putting your brand in front of an audience of real estate agents shows that you are adaptive to a changing client demographic (yes, “Realtortok” is a thing). A short, lively, well-executed video can quickly demonstrate an originator’s know-how and present complex information in a digestible way, making it an excellent way to stand out.
LinkedIn is still an excellent way to connect with Realtors and other real estate industry professionals through targeted, thoughtful posts and outreach. It is the most efficient way for mortgage originators to expand their network and target their message to a very specific audience.
Being active and engaged on LinkedIn allows you to share insightful articles, market trends and expert analyses to position yourself as an authority in the mortgage space. If you’re willing to invest a bit more in your educational posts, you can even develop marketing campaigns directly targeted at professionals in your specific territory, ensuring that you’re highly visible to the right audience.
Prioritize — and personalize — educational content
Starting a blog or contributing to an existing platform can further solidify your position in the industry as a professional educator and resource for real estate agents. A well-researched blog post can resonate with those who seek insights on the latest trends and products, serving their needs while also making you a go-to source of information.
Real estate agents may repost an originator’s content piece that can help them market more effectively to clients, which means just a little writing from you can go a long way.
In this difficult mortgage landscape, originators must prioritize building strong relationships with real estate agents. Meanwhile, the increasing use of generative AI means content is quickly becoming depersonalized and bland, so it’s important to zig when others are zagging.
Going beyond the high-level stories already covered in the press and digging deeper to focus on a specific niche or geography lets you cater to the unique needs of agents in different areas, with content that is more relevant and actionable. Effective marketing strategies that lean into the people connection and personalized content are essential in order to generate traction with your audience.
In a high-stakes environment, building credibility and deepening relationships can go a long way toward supporting your marketing efforts. Try incorporating the ideas described above as you plan your 2024 marketing strategy.
By mastering these tactics, you will be able to navigate the current market challenges, foster genuine partnerships and differentiate yourself from the competition to ensure long-term success.
Tom Hutchens is the executive vice president of Production for Angel Oak Mortgage Solutions.
The decision whether to seek debt forgiveness can have serious consequences for taxes and credit standing. This article is not intended as legal advice for your specific circumstances and does not create an attorney-client relationship with Lexington Law.
Debt forgiveness occurs when a lender forgives either a portion of or the entire debt owed by a borrower from a loan or credit account.
Debt forgiveness occurs when a portion of a loan or the entire remaining amount of a loan or credit line is canceled, relieving the borrower from the obligation of repayment. Before moving forward with debt forgiveness, it’s important to consider the potential benefits and drawbacks so that you’re fully prepared.
It’s also important to note that debt forgiveness differs from debt relief, which involves reorganizing debt to facilitate repayment—but doesn’t cancel the debt.
Continue reading to learn more about debt forgiveness and explore different options that you may qualify for.
Debt forgiveness benefits
Debt forgiveness can provide relief to those who are struggling to make payments, and it has the following benefits:
You can avoid filing for bankruptcy: Debt forgiveness can prevent the need to file for bankruptcy, which would severely damage your credit for up to seven to 10 years.
You can pay less than your original obligation: While the amount you’ll pay varies depending on the program you choose, it is typically much less than the amount you originally owed.
You can pay your debts quicker: Through debt forgiveness, you can significantly reduce your debt in a much shorter time frame than you initially expected.
Debt forgiveness drawbacks
On the other hand, debt forgiveness has the following downsides that you should be aware of:
You may owe taxes on the amount that’s forgiven: In general, canceled debt is considered taxable income that you may be responsible to cover.
You could owe more than your original obligation: Many debt relief companies charge excessive fees that could equal or exceed the amount you originally owed. Additionally, it’s important to change your financial habits so you don’t continue to rack up debt.
Your credit may take a hit: Depending on the type of debt that’s forgiven, you could notice a negative effect on your credit. However, this will likely not be the case if the debt in question is student loans or medical bills.
Because of these drawbacks, you may want to consider other debt management options.
Debt forgiveness vs. debt consolidation
An alternative to debt forgiveness that you may want to consider is debt consolidation. While this method doesn’t cancel the debt, it can help you pay it off faster and accrue fewer interest charges.
One of the most common debt consolidation methods is a balance transfer, which involves moving debt to a new credit card that offers 0% APR for a few months. During this time, you can work to pay off your debt without racking up interest.
Other options include taking out a personal loan or home equity loan to pay off your debt. The strategy here is that your new loan would have a lower rate than that of your current debt, allowing you to save on interest
Just be wary of for-profit companies that promise debt relief via consolidation, as they’re often pricey. Instead, look to nonprofits such as the National Foundation for Credit Counseling.
How to get debt forgiveness
If you’re moving forward with debt forgiveness, you have a few options depending on loan type and your overall personal and financial situation.
Federal programs
One of the few ways to get true debt forgiveness without consequences is to see if you’re eligible for a special program. Typically, these are only offered for student loan debt and home mortgages:
Student loan forgiveness: In mid-2023, student loans totaled $1.7 trillion. To help alleviate this, the Public Service Loan Forgiveness (PSLF) program provides Direct Loan forgiveness for full-time workers of U.S.-based or non-profit organizations who have made 120 qualified monthly payments. Another type of student loan forgiveness is income-driven repayment plans, which forgive the remaining loan balance at the end of a repayment period. Thirdly, if you’re a teacher, you may be eligible for a Teacher Loan Forgiveness program.
Mortgage debt forgiveness: The Mortgage Forgiveness and Debt Relief Act, enacted in 2007, lets eligible borrowers exclude up to two million dollars in forgiven mortgage debt from their taxable income. This allows forgiven mortgage debt and foreclosure balances to be truly penalty-free.
You may be eligible for other federal programs to help manage debt. To explore your options further, the Federal Trade Commission has guidelines for getting out of debt.
Settlement
Settlement is by far the most common form of debt forgiveness. It’s the process of negotiating your debt to only repay a portion of your outstanding balance. The rest is forgiven, meaning repayment is not necessary.
Borrowers tend to choose debt settlement if they can’t afford expensive and persistent debt payments. They may also choose this route as an alternative to declaring bankruptcy, since debt settlement should only stay on your credit report for seven years.
However, it’s important to watch out for hefty fees from these companies. If hiring a debt settlement agent is beyond your means, keep in mind that negotiating on your own is an option. First, you’ll need to determine your outstanding balance and what monthly payment you can afford. Next, contact your creditor. You’ll need to explain why you can no longer afford the loan and then negotiate a lump sum. If they agree, ask for a written letter so you have legal proof of the settlement.
Statute of limitations
If you’re seeking debt forgiveness for credit card debt, you may be able to leverage the statute of limitations (SOL) in your state. The SOL is applicable once a certain amount of time has passed (typically three to 15 years depending on what state you live in) and your debt collector hasn’t pursued debt collection in court. After this time frame, they have no legal claim to your money, and they should no longer be able to successfully sue you to collect the debt. However, this approach is risky for a number of reasons.
SOL start to accrue after the date of last activity, which includes payments and charges. After your SOL expires, a lawsuit can still be filed against you—but you can use the SOL as a defense in court.
Bankruptcy
Filing for bankruptcy is an option and that decision will remain on your credit report from seven to ten years. That said, it may help forgive some of your debt.
If you file for Chapter 7 bankruptcy, your debt is forgiven and some of your assets remain with you subject to certain state and federal exemptions.
If you file for Chapter 13 bankruptcy, you’re still required to pay off your debts. However, the court will assign you a payment plan spanning anywhere from three to five years, and they may reduce your outstanding balance to lessen the financial burden.
What are the consequences of debt forgiveness?
After you have a portion of your debt forgiven, you may feel like you’re out of the woods—and for the most part, that’s true. However, there are a few circumstances you’ll need to be aware of so that you’re prepared for the effects debt forgiveness may have on your finances.
Taxes
No matter which debt forgiveness route you take (with the exception of bankruptcy), you’ll likely end up with a higher taxable income. If the amount of forgiven debt exceeds $600, you’ll receive a 1099-C form titled “Cancellation of Debt” from the creditor.
With this form, you report the amount of your forgiven debt to the IRS and pay income tax on it. When you first take out a loan or borrow money, you’re not charged taxes on it because there’s the assumption that you’ll pay it back. But after debt forgiveness, that assumption no longer applies, which is why this essentially “free money” is now considered taxable income.
The upside is that the income tax you owe on the forgiven debt amount is less than what you would have to pay if you still owed the debt. Make sure to plan for this expense so that it doesn’t surprise you, especially if the forgiven amount is sizable.
Consider contacting a qualified tax professional for help accurately filing your taxes. Then, once you properly report your debt forgiveness to the IRS, you’ll want to check your credit report.
Credit score
The unfortunate reality is that debt forgiveness may negatively affect your credit score. Of course, there is no way to say for sure. What will improve is your debt to income ratio. The effect to which debt forgiveness impacts your credit largely depends on how you choose to seek debt forgiveness.
Bankruptcy can be the most devastating option for your credit score. According to Debt.org, a FICO score of 780 could take a 240-point dip, and a score of 680 could take a hit of 130 – 150 points. If your credit score is much lower than 680, you may not see as large of a dip. However, if you have no late payments or charge off on your credit report prior to filing bankruptcy, your score dip is far less.
Debt forgiveness provides a much-needed solution for borrowers struggling to make payments. However, it also comes with conditions. When considering which debt management plan is right for you, a little careful planning can go a long way.
If overwhelming debt has caused your credit to dip below where you’d like it to be, see if we could help. We can take a look at your credit report and assist you with moving forward.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Yes, it’s possible to get a credit card without a job, although you’ll usually still need a source of income. This could come from excess financial aid, Social Security, a spouse’s income, or other avenues.
Yes, you can get a credit card without a job—and sometimes, even with low credit. Life transitions, college, retirement, and many other life circumstances may mean you’re unemployed when applying for a credit card. Building and maintaining healthy credit is important during every stage of life, and you may be surprised how simple it is to obtain a credit card even if you aren’t earning a consistent wage.
From using alternative incomes to cosigning and more, here are four tips for how you can get a credit card with no job.
Table of contents:
1. Consider all forms of income
2. Leverage someone else when applying
3. Go for a secured credit card
4. Make sure you can pay your balance
FAQ
1. Consider all forms of income
Ultimately, lenders care more about your income than they do about your salary. This means that qualifying for a credit card—even if you aren’t receiving a consistent wage—is completely feasible. Consider all income you have access to when applying for a credit card, no matter what stage of life you’re in.
If you’re a student
When you’re applying for a credit card as a student without a job, you can report any extra student aid that isn’t going toward tuition as “income.” This may help you qualify for a credit card.
If you have an employed spouse
Thanks to the Credit Card Act of 2009, those who are over 21 can report household income that they have access to when applying for a credit card. This means that you can report your spouse or partner’s income if you have a joint bank account or if they transfer an amount of money to you every month.
If you’ve lost your job
After losing a job, you’ll want to avoid overextending your budget. However, a credit card can still be a useful safety net in case of an unforeseen situation when funds are tight. You can report unemployment and severance as income when applying.
If you’re retired
You may also report any non-wage income when applying for a credit card. If you’re not working, this could be interest, dividends or Social Security payments. Ideally, retirees have had a long time to build up a solid credit history, so getting qualified for a credit card shouldn’t be difficult.
2. Leverage someone else when applying
We all need a little help from time to time. If they’re willing, friends and family with good credit may be able to cosign or add you as an authorized user on their credit card.
Have someone cosign
Although it’s a big favor to ask someone, having a parent or trusted close friend cosign on a credit card is a great way to qualify if your own credit history isn’t sufficient. If you choose this route, it’s doubly important that you make on-time payments each month—otherwise, you jeopardize both your own credit score and your co-signer’s.
Become an authorized user
If you still live with your parents, you may want to consider asking them to add you as an authorized user on their card. You can then use their credit card to make purchases and pay them the amount you spent. Although the card won’t be yours, as long as the primary cardholder makes consistent payments, the effects to your credit score will likely be positive. This option is best for those looking to build credit—but if you’re looking for a card of your own, a secured card may be better.
3. Go for a secured credit card
If you’re unable to meet the criteria to qualify for an unsecured credit card, you may want to explore secured options. Although uncommon—secured cards make up less than one percent of all consumer credit cards—they’re a great place to start.
A secured credit card is a card with relatively small maximums that borrowers can qualify for with a refundable safety deposit. The creditor may then use the deposit as collateral in case you are unable to pay back the balance.
New borrowers, those with poor credit or those without a steady income may find it easier to qualify for unsecured credit cards, as they’re seen as less risky by lenders. Two common secured credit card options are:
Discover It Secured Card: There’s no annual fee, and you get two percent cash back at restaurants and gas stations and one percent back everywhere else.
Capital One Secured Mastercard: A deposit as low as $49 gets you a credit limit of $200, and you are eligible for higher credit limits in as little as six months.
4. Make sure you can pay your balance
Remember that if you’re applying for a credit card without a job, you must be able to pay off the balance. Avoid getting into a borrowing situation that will cause you to carry over a large balance month to month, as credit card interest can get expensive.
Additionally, if you’re in college with student loans, credit card debt can be an extra burden on your debt load. In fact, a 2021 report found that credit card debt was the number one source of financial stress for college students, even above student loan debts.
As long as you don’t charge more than you can afford, unemployment doesn’t have to be a barrier to credit building. By ensuring a responsible, on-time repayment plan, you’ll set yourself up for credit success early on.
FAQ
If you have other questions about getting a credit card while unemployed, check out our answers to these commonly asked questions.
Does unemployment affect your credit?
Unemployment does not directly affect your credit. While your credit report does include your repayment history, it does not include your income, employment status, or whether you’ve filed for or received unemployment. If you need to apply for unemployment during hard times, don’t feel like you can’t.
However, if your job loss results in missed payments or overutilizing your credit card, these things could affect your score.
What’s a good annual income to get a credit card?
This depends on the issuer. While income won’t appear on your credit report or affect your credit score, issuers are still legally required to ask applicants their income per the Credit Card Act of 2009. This helps ensure credit borrowers can repay their debts. However, issuers set their own credit application requirements, and no total gross income limit for credit cards exists.
Remember to only borrow what you can reasonably repay. If you’re applying for a credit card with no income of your own, consider alternative solutions, like becoming an authorized user on a spouse’s credit card.
What disqualifies you from getting a credit card?
Credit card application approvals are at the issuer’s discretion, but generally, you must be at least 18 years old to open an account under your own name. Between 18 and 21 years old, you’ll also need to provide proof of independent income or have an adult cosign. Otherwise, issuers can set their own income, credit score and other requirements.
Can students get a credit card with no job?
Yes! Students who receive financial aid in excess of their tuition costs can count this extra money as income on their credit card applications. If this isn’t enough to qualify, students can also ask their parents to cosign on the credit card application—or add them as an authorized user to a family card.
What should I put on my credit application for my occupation if I have no job?
You can simply enter homemaker, stay-at-home parent, or none. Remember, you don’t need a job to get a credit card, so being honest here won’t disqualify you. The same thing goes if you come to a question about your employer information: just be honest and put none.
For more ways to improve your credit, especially if you have questionable negative items on your credit report, learn more about the services at Lexington Law Firm—including how credit repair works.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Paola Bergauer
Associate Attorney
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.
In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
In the world of mortgage lending, there’s an all-too-common sentiment that echoes through the industry: “My loan origination system (LOS) sucks.”
Regardless of the specific LOS in use, this feeling seems pervasive among lenders, and the dissatisfaction stems from lenders’ desire to deliver more digitally driven, bespoke borrower experiences.
In reality, the LOS is not the problem; the technology is doing exactly what it was designed to do. The root of lenders’ dissatisfaction with their LOS is unrealistic expectations versus the limitations of the LOS itself.
Lenders could save themselves a fair bit of angst — and achieve their goal of crafting better digital borrower experiences — by reframing their thinking about the LOS’s role in the overall origination process and exploring more suitable technology to craft the desired borrower journey.
Adjust your expectations
At its core, an LOS is designed to serve a very specific purpose: ensuring that lenders can originate compliant and sellable loans. It’s the backbone of the lending process, responsible for handling complex calculations, managing compliance and orchestrating a multitude of moving parts to transform an application into a closed loan.
While some platforms may include consumer-facing features and functionality, the impetus is to improve the LOS’s ability to perform its back-end function and not necessarily support the lenders’ desired borrower experience. Furthermore, expecting the LOS to perform like a consumer-facing application with texting capabilities, an intuitive app interface and bespoke interactions is simply asking too much.
The LOS is a foundational piece of technology for every lender. Thus, these systems have evolved over time to provide the necessary backbone for lending operations and ensure compliance, scalability and adaptability across various lending models, from wholesale to retail. With that in mind, it is easy to see how it would be impossible for an LOS to cover a mandate as broad as supporting every type of operating model and be bespoke enough to deliver a unique borrower experience for every lender.
To paraphrase Albert Einstein, imagine judging a fish by its ability to climb a tree. It would forever feel like a failure due to its inherent limitations. Along these same lines, lenders should avoid assessing their LOS based on its capacity to deliver a borrower experience for which it was not designed. Instead, lenders should focus on identifying the right tools for the job and setting realistic expectations for each.
Expand your horizons
As the front-end technology mortgage borrowers often interact with first, the point-of-sale (POS) system is the most logical starting point for lenders to build the unique borrower experiences they desire. Unlike an LOS, a POS system is intended to be consumer-facing, offering an opportunity to design and deliver a tailored experience that aligns with the lender’s brand, values and customer journey.
In addition, a POS system isn’t shackled by the same need to cater to all aspects of lending as an LOS does. Therefore, each POS platform has its own identity and focus, making it more likely for lenders to find a platform that enables them to personalize the borrower experience.
Whether they’re targeting real estate agents, working in the consumer direct space or focusing on any other niche, lenders can capture the essence of their lending process and extend it directly to borrowers, creating an intuitive, engaging and unique journey using the right POS.
However, the POS is not the be-all-end-all technology for crafting the borrower experience. While the POS is often the first technology-driven touchpoint between the borrower and the lender, the homebuying journey starts well before the application process, and there are numerous borrower touchpoints between application and closing.
By identifying these points and applying the right technology, lenders can not only deliver a superior borrower experience but also gain a much-needed operational lift and perhaps reduce overall expenses.
Make it work
While it is not the LOS’s job to deliver the borrower experience lenders desire, the technology lenders adopt to fulfill that goal must play nice with the LOS to maintain the integrity of the origination process and ensure compliance. LOS providers have recognized the need for flexibility and innovation.
Many LOS platforms now offer APIs (application programming interfaces) that allow lenders to seamlessly integrate ancillary technologies, like POS systems. This creates a modular approach, empowering lenders to assemble a tech stack that aligns with their specific vision for borrower engagement.
However, not all APIs are created equal, and biases may exist in the integrations between certain systems. Thus, lenders should conduct considerable due diligence into how their chosen ancillary system will connect and interact with their LOS to ensure a smooth process from both the borrower’s perspective and the back end.
Rather than blaming an LOS for not meeting expectations it was never designed for, lenders should leverage their point-of-sale system and complementary technologies to sculpt the borrower experience they envision.
By making the most of the tools at their disposal and embracing the strengths of each component, lenders can elevate their offerings, stand out in a competitive housing market and ultimately deliver a borrower experience that’s truly bespoke.
Patrick O’Brien is co-founder and CEO of LenderLogix.