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Apache is functioning normally

September 26, 2023 by Brett Tams

Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

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Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

By:
Rob Chrisman

49 Min, 7 Secs ago

As if lenders and vendors don’t have enough other stuff to worry about, the budgetary standoff in the U.S. doesn’t look like it will abate soon, raising the likelihood of the first government shutdown since 2019. Current funding for federal operations will end on October 1 unless a deal is reached or the proverbial can kicked down the road. Thousands of federal workers might be furloughed without pay. Sure it will be temporary, and its wider impact will likely be limited, but still even talking about it is lousy. According to Morgan Stanley, the last 20 government shutdowns that occurred since 1976 “appear to have had limited impact on the economy.” As for bond prices, a shutdown may cause some “temporary instability”, but this is not a given. There is talk of a short-term Continuing Resolution (CR) providing funding until later this year, but federal agencies, including HUD and Treasury, will cease to function normally. The National Flood Insurance Program (NFIP) authorities also expire on October 1st. The Mortgage Bankers Association created a guide outlining how HUD (including FHA and Ginnie Mae), VA, and USDA would be directly affected by the furlough of government employees and the curtailment of agency operations. (Today’s podcast can be found here and this week’s is sponsored by Built. Built is powering smarter and faster money movement for the entire construction and real estate ecosystem, all while reducing risk. Hear an interview with Servbank’s Bryan Crofford on how companies can best invest in employees, promoting longevity and success.)

Lender and Broker Software, Programs, and Services

Life can change on a dime, and sometimes even the most prepared borrowers end up facing financial hardships they never would have imagined. Forward-thinking credit unions are preparing today, so they can be there for their members when they need help the most. It’s why Mission Federal Credit Union implemented the MSP® loan servicing system, to not only improve their own efficiencies, but better serve their members who are facing financial difficulty. Are you ready to join Mission Federal Credit Union by enhancing your technology to be there for homeowners in life’s most challenging moments? Learn more about MSP today.

One thing that you can always count on in the mortgage space, is that regulatory requirements are always changing. This is why it’s critical for Banks or Mortgage Servicers to stay vigilant with comprehensive Compliance Testing and Monitoring to mitigate exposure and minimize risk. At the MBA Annual in Philadelphia, PA, Servbank’s Shayna Arrington will be helping us all do exactly that. Watch her moderate the panel, “Today’s Top Regulatory Issues” on Tuesday, October 17 at 1:30 PM, on 200 Level, Exhibit Hall E. Want to dive deeper into how Servbank can partner with you? Servbank will have a meeting space at the W Philadelphia on 10/16 and 10/17. Schedule some time to meet with them here: [email protected] or learn more at www.servbank.com.

One-Time Close (OTC) Volume Soars to record highs at AFR Wholesale® (AFR)! While housing inventory is still at an all-time low, OTC loans have witnessed an unprecedented surge in volume! In August, AFR closed more One-Time Close loans in one month than at any other time in their long history of offering the product. Homebuyers are increasingly drawn to the convenience and cost-saving benefits of OTC loans, as they streamline the construction process, reduce paperwork, and offer more favorable terms. This surge in OTC loans at AFR is not just a testament to its effectiveness but also an indicator of the outstanding clients and partners of AFR. Breaking news: As a thank you to their clients, AFR has also brought back FHA OTC on site-built homes!! This long-awaited product is back for partners of AFR to utilize now. Partner Today or contact AFR, email or call 1-800-375-6071.

One of the biggest questions for LOs in a down market is “How do I find more agent partners?” The answer is MMI. To find the right agent partners, you need the right data. MMI has assembled the industry’s most comprehensive real estate and mortgage transaction database which is leveraged by thousands of mortgage professionals daily. Using MMI’s database, LOs can easily search & filter, find an agent and at the click of a button, push the info to a CRM like Bonzo. Sign up for a demo today to see why a majority of the top 25 lenders rely on MMI.

Free eBook: Market-Proof: How to Build a Flexible Lending Business Resilient in Upcycles & Downturns. The exaggerated upcycles and downturns of the past few years underscore just how crucial it is for lenders to build resilience and flexibility into their businesses. To overcome today’s challenges, lenders need to hone their lending process at each step. In this new eBook, Maxwell provides 12 tips from industry veterans to help you optimize your mortgage process from loan application to the secondary market. You’ll get insight from exclusive interviews with industry veterans on how to increase efficiency, access economic scale, and become resilient to market volatility like never before. Click here to download Maxwell’s new eBook “Market-Proof: How to Build a Flexible Lending Business Resilient in Upcycles & Downturns.”

The transformation from paper to digital processes offers substantial benefits, including cost reduction and improved borrower experiences. Most lenders are in a hybrid phase, blending paper and digital processes. To navigate this ongoing change and ongoing innovations in the digital lending space, lenders should consider embracing five best practices: create a successful strategy, prioritize borrower experience, ensure compliance, harness technology, and stay adaptable in the evolving digital landscape. Tackle the future of lending by staying informed and proactive. For deeper insights into this digital lending revolution and actionable steps, read the full article.

“Heading to Vegas? The Total Expert team is in full force at the Digital Mortgage conference in Las Vegas! There are three ways to interact with us. The first is to stop by booth #501 to get your Customer Intelligence ROI report and learn how you could increase funded loan volume by 20 percent. You can watch a LIVE demo of Total Expert on Tuesday 9/26. Lastly, catch our Founder & CEO Joe Welu for a panel discussion: The Customer Data Goldmine Goes Way Beyond Credit Triggers on Wednesday 9/27.Schedule time to meet with the Total Expert team in Vegas.”

Freddie Mac, Fannie Mae, Conventional Conforming News

The Federal Housing Finance Agency (FHFA) released its second quarter 2023 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 47,370 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,818,471 since the start of conservatorships in September 2008. View the News Release

FHFA-OIG released two reports: Within the Federal Housing Finance Agency (FHFA), the Division of Federal Home Loan Bank Regulation (DBR) is responsible for supervising the Federal Home Loan Bank (FHLBank) System to ensure the safe and sound operation of the FHLBanks. In response to market disruptions, DBR adapted the scope of its Federal Home Loan Bank Supervisory Activities in 2023.

Regulated entities have not been immune to the trends affecting the labor market over the past few years. Some of the regulated entities experienced higher attrition in 2021 and 2022, consistent with trends in the broader labor market, but one Enterprise reported that its turnover rate started declining in 2022. Read the full report, People Risk at FHFA’s Regulated Entities.

Freddie Mac will update Loan Product Advisor® (LPASM) in October to support multiple recent Single-Family Seller/Servicer Guide announcements, plus more enhancements, described in Freddie Mac October LPA Releases.

Freddie Mac Loan Selling Advisor September Updates includes the following information: Uniform Loan Delivery Dataset (ULDD) Phase 4a Updates and Phase 5 Specification, Auto Evaluate on Import Loan, New Loan Delivery Rules Supporting the Duty to Serve Credit Fee Cap, Initial Principal and Interest Payment Amount Conditionality update, Auto Re-evaluate: Improvements to Modify and Evaluate, and Enhancements to Mandatory Cash Contracting.

Leverage Fannie Mae’s new edition of Beyond the Guide to help your organization build a best-in-class quality control (QC) program. Specific examples and scenarios provided can help teams understand and apply Selling Guide concepts in a way that is most impactful to their organization. A robust QC program helps strengthen loan quality ensuring a safe, sound, and resilient mortgage industry.

Fannie Mae Appraiser Update September 2023 edition focuses on dual themes of delivering high quality appraisals and understanding recent policy changes. Topics include updates to the Appraiser Independence Requirements (AIR), new options for 1004D completion, our stance on 3D printed homes, and more.

Fannie Mae posted the September Appraiser Quality Monitoring (AQM) list. Read the AQM FAQs.

Chris Whalen writes, “Our short take on the future of the GSEs (Government Sponsored Enterprises) looks a lot like the character played by Bruce Willis in the 1995 Terry Gilliam film, ‘Twelve Monkeys.’ Imagine if the GSEs were released from conservatorship, but then were immediately designated as a ‘systemically important financial institution’ (SIFI) by the FSOC. How do you think that would work for private investors? What would happen to the guarantee fees?”

Pennymac Conventional LLPAs updates effective for Best Efforts Commitments: Pennymac Announcement 23-58 replacement of ‘Purchase Special’ LLPA Grid with new ‘Area Median Income Adjustments’ LLPA Grid. Pennymac Announcement 23-59 introduces new ‘Investment Property’ LLPA to the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid. Pennymac Announcement 23-60 updates values for the ‘2nd Home Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid.

Pennymac is aligning with the FHFA based updated project review and eligibility requirements announced in Fannie Mae SEL 2023-06 and Freddie Mac Bulletin 2023-15, with the exception of any reference to co-op projects. View Announcement 23-61: GSE Updated Condo Project Review Requirements

Citizens Correspondent National Bulletin 2023-16 provides updates on the following topics: Conventional Conforming Products, Review requirements for condominium eligibility – DU and LPA, Gifts and Gifts of Equity – DU, 3D printed homes, Trust Income – DU, USDA-RD Product, Fiscal Year 2024 Conditional Commitment Notice, All Products, Disaster Tax Filing Relief.

PHH Mortgage Corporation updated Conforming Product listings for both Delegated and Non-Delegated loans.

Pennymac announcement 23-62: Fannie Mae SEL 2023-06 Condo Project Manager Updates

Citi Correspondent Lending Bulletin 2023-08 provides Credit policy updates regarding Non-Agency Depreciating Markets list updated, Condo & Co-Op Critical Repairs, Shared Equity and Shared Appreciation, LPA Asset, and Income Modeler (AIM), Continuity of Obligation: Limited Cash-Out, Hazard Insurance Update: Effective Date, and Taxpayer First Act.

On September 6, 2023, Fannie Mae and Freddie Mac announced Selling Guide policy changes addressing multiple topics in Fannie Mae SEL-2023-08 and Freddie Mac Bulletin 2023-18.

AmeriHome Mortgage accepts all revisions, view Product Announcement 20230910-CL for details.

Capital Markets

Ahead of today’s $48 billion 2-year Treasury auction, headlines to open the week revolved around increases in oil prices that’s evidence of inflation’s stickiness, Chinese developer Evergrande calling off talks with creditors as it appears headed for bankruptcy, and reaction to hawkish Fed remarks which is forcing yet another reprice from markets. There is growing sentiment that central banks across the globe aren’t done hiking rates, and Treasury yields trended higher to open the week as a result. With the calendar turning to fall, the economy is facing a few headwinds such as the run up in oil prices, student loan payment resumption, an expanding auto workers strike, and a partial shutdown of the U.S. government.

Every lender knows that mortgage rates remain above 7 percent, and housing data released over the last week highlighted another decline in builder sentiment. Housing starts fell 11.3 percent to a 1.25-million-unit pace in August. Existing home sales were down 0.7 percent in August as low inventory, high prices, and high mortgage rates continue to weigh on sales. Hoping for lower interest rates? A recession would likely mean lower interest rates, but workers with stable jobs (most individuals) would want to take advantage of low interest rates, causing home prices to rise faster. Initial jobless claims fell to 201k for the week ending September 16, which was the lowest weekly reading since January. The JOLTS report indicated that the demand for new workers is moderating somewhat however, significant layoffs are not on the horizon.

Today’s calendar includes the Philadelphia Fed non-manufacturing surveys for September, Redbook same store sales, July house price indexes from S&P Case-Shiller and FHFA, September consumer confidence, August new home sales, Richmond Fed manufacturing for September, Dallas Fed Texas services for September, the aforementioned Treasury auction of $48 billion 2-year notes, and remarks from Fed Governor Bowman. We begin Tuesday with Agency MBS prices a few ticks (32nds) better and the 10-year yielding 4.50 after closing yesterday at 4.54 percent. The 2-year is up at 5.12.

Employment

“At Fairway Independent Mortgage Corporation, customer service is a way of life. #FairwayNation mortgage loan officers are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted mortgage advisor, providing highly personalized service and helping you through every step of the loan process, from application to closing and beyond.”

Logan Finance Corporation, a national Non-QM mortgage lender, is excited to welcome Aaron Samples to Logan’s Executive Leadership Team as Chief Revenue Officer. To learn more about why Aaron joined one of the fastest Non-QM lenders in the nation, contact Randy Viars.

The FHA has a job opening for a Senior Underwriter: Job Announcement Number 23-HUD-2915-P. Job duties include assisting the Branch Chief in monitoring the status of goal accomplishment. Advise the Chief of potential problems in attainment of goals and objectives. Research required underwriting procedures and techniques. Serve as an expert-level resource within his/her Office on matters relating to Underwriting and other Direct Endorsement issues.

Don’t forget that private mortgage insurance companies are hiring: MGIC, National MI, Arch MI, Radian, Essent, and Enact (in no particular order). And while’s we’re at it, Fannie Mae and Freddie Mac. And my cat Myrtle’s friend the CFPB.

Dovenmuehle Mortgage, Inc. announced that Robert Howerton has joined the organization as Chief Information Officer where he will be maintaining and expanding Dovenmuehle’s current information technology (IT) infrastructure.

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

September 26, 2023 by Brett Tams

According to reports from the second quarter of 2022, the total of all household debt in the United States is a whopping $16.15 trillion. Mortgages make up the bulk of that debt, with student loan, auto loan and credit card debt trailing behind.

On average, adults in the United States carry debt loads ranging between $20,800 and $146,200. If you’re in debt and looking for a way to pay it off, making a plan is a critical step. Find out more about how to get out of debt below.

1. Collect All Your Paperwork in One Place

Before you can get out of debt, you need to know how much debt you actually have. You should also know who you owe and what the terms are, as this can help you prioritize debt payments to pay them off faster.

Start by collecting all your debt paperwork in one place and creating a master list of everything you owe. You can do this in a spreadsheet or with a pen and paper. Information to gather includes:

Statements for all your debts. One way to do this is to spend a month saving all your financial mail and email so you have a comprehensive picture of your debt.
Regular bills that aren’t debts. Your cell phone and utility bills, as well as your rent, should all be included when you gather this financial information.
Information about income. Look at paycheck stubs or your bank accounts so you know what, on average, you can expect in income each month.
Your credit reports. Get your free credit reports at AnnualCreditReport.com to ensure you know about all the debt you owe.

Tip: Sign up for ExtraCredit to see your credit reports and 28 FICO® scores in one place.

2. Create a Budget and Determine What You Can Pay Every Month

Using the information you gathered in the above step, create a monthly budget. Make sure you cover all your bills and minimum debt payments. When possible, include an amount that can go toward building your savings. Allocate funds for essentials, such as groceries and gas.

Once you cover all the needs for the month, figure out how much money you have left. How much of that can you put toward extra debt payments so you can start getting ahead on debt?

3. Manage Your Debts in Collections

If you see that you have any debts in collections when you pull your credit reports, make sure you have a plan for taking care of them. Collection accounts have a serious negative impact on your credit score. Creditors may also sue you and try to collect on these accounts via wage garnishments or bank levies if you don’t take action to manage collections. That can throw a huge wrench into your plan for getting out of debt.

Tip: If you don’t enjoy manual calculations, check out Tally. You can use Tally to total up your expenses, pay down credit card bills, and generally figure out where you stand.

4. Consider Your Options

There are two main approaches to paying off debt as quickly as possible: the snowball method and the avalanche method.

The snowball method involves paying off accounts with the lowest balances first. You take any extra money you have—even if it’s just $50—and add it to your regular minimum monthly payment on that small balance. When that balance is paid off, you take the extra $50 plus the minimum payment and add it to the next biggest balance. You keep doing this as you work your way up to larger balances, paying your debt off faster and faster.

With the avalanche method, you tackle accounts according to interest rates. You start by paying off accounts with the highest interest rates first. The thought behind this method is that you save money in the long run by tackling high-interest debt first.

5. Try to Reduce Your Interest Rates

Interest refers to how much your debt costs. If you have a lower interest rate, your debt costs less and you can pay it off faster. Here are some ways you can try to reduce interest rates on your debts:

Ask for a lower interest rate. If you’re a credit card account holder in good standing and your credit history and score has improved since you got the card, you may be able to get a better rate. Call customer service for your card and let them know you are looking for a better deal. They may agree to lower the rate to keep you as a cardholder.
Look into debt consolidation or refinancing. A debt consolidation loan provides funds you can use to pay off higher-interest debts. Refinancing occurs when you get a new loan for a home or car. If you had lackluster credit when you got your auto loan, for example, you may be able to refinance it for a lower rate if your credit has improved.
Get a balance transfer credit card. You may be able to transfer balances from a credit card with a high interest rate to one that has an introductory low APR offer. This may allow you to pay off the debt over the course of 12 to 22 months without incurring any more interest expense.

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Do Your Best to Pay More Than the Minimum

Only paying the minimum on high-interest debt, such as credit card debt, doesn’t get you out of debt fast. It can take years—dozens of them—to pay off credit card balances if you’re only making minimum payments.

Instead, put more than the minimum on your debt whenever possible. You may also want to put any additional funds you receive—such as a tax refund—on your debt to help with this process.

Consider More Options for Getting Out of Debt

Creating a budget, managing your money wisely, and making extra payments toward your debt all help you get out of debt. Here are some other ways you can deal with debt:

Increase your income while cutting unnecessary spending. Join the gig economy with a side job to earn extra money, or sell things you don’t need via online marketplaces.
Undergo credit education and counseling. These services can help you make the most of your monthly budget.
Engage in debt settlement. You may be able to negotiate with creditors, especially for accounts in collections, to settle debts for less than you owe. Just make sure you understand any effects on your credit.
Enter a debt management plan. During such a plan, you make a single payment to a trustee. They use those funds to pay your debts, hopefully in a way that gets you out of debt faster.
Declare bankruptcy. If you find you’re unable to pay your debts, much less make extra payments, you may need another option. Chapter 7 and Chapter 13 bankruptcy are potential considerations.

How to Avoid Getting into Debt

Paying off debt doesn’t have to be impossible, but it can be challenging. For many people, it requires altering years’ worth of financial habits. If you’re not already in debt, it may be easier to stay out of it. Create a budget and stick to it, spend wisely and avoid using credit cards for things you don’t need or can’t afford to buy with cash.

Source: credit.com

Apache is functioning normally

September 25, 2023 by Brett Tams

Educating yourself about debt collection scams is one of the best ways to avoid them. And if fake debt collectors come calling or you suspect you’ve fallen victim to such scams, there are things you can do to protect yourself.

9 Tips for Preventing Debt Collection Scams

Verify the Debt Is Legitimate
Verify the Agency Is Legitimate
Check Your Credit Reports
Protect Your Information
Contact the Original Creditor
Understand Your Rights
File a Complaint
Contact the Credit Reporting Agencies
Remember Some Debt Is Legitimate

About Debt Collection Scams

The Federal Trade Commission reported that scam and fraud reports were up an unfortunate 70% from 2020 to 2021, and imposter scams were the main culprit. They accounted for $2.3 billion in losses in 2021.

Imposter scams include any scam that involves a person or entity pretending to be someone else. That includes debt collection scams where someone pretends to be a legitimate company collecting debt from you. Here are a few things you should know about debt collector scams:

They can happen to anyone, and some scammers are quite sophisticated. That means it can be possible for anyone to get tricked into giving these people money.
You have a right to verify debts before you agree to talk about payments.
Doing a bit of homework and following paperwork trails can help you avoid debt collection scams.

Keep reading to discover the steps you should take when you’re contacted by a debt collector or think you might be the target of a collection agency scam.

Verify the Debt Is Legitimate

You have the right to ask for verification of a debt when you’re contacted by a debt collector. Do this by disputing the debt in writing and asking the collection agency to send a validation letter, including the name and address of the original creditor for the debt.

A legitimate creditor will provide you with information that includes:

The amount you owe
The name of the original creditor
A notice of your rights, including your right to dispute the debt

If the agency is unable or unwilling to provide this information, they are either violating your rights as a consumer or may be attempting to scam you.

Verify the Agency Is Legitimate

Avoid cash-and-go scams and other issues by verifying that the collection agency contacting you is legitimate. Here are some steps you can take to do so:

Ask for everything in writing. Never negotiate or make payment based solely on a phone call.
Research the collection agency online. Look for a legitimate website or information on sites like the Better Business Bureau to find out if the business is real.
Call your state attorney general’s office to find out if there are any complaints about the agency and if it can legally operate in your state.

Check Your Credit Reports

Checking your credit reports or your free credit report card helps you understand whether you might owe a debt you didn’t know about. It also lets you see if someone has reported inaccurate information about a debt you don’t owe. When you know what’s on your credit reports and whether or not it’s accurate, fake debt collection calls can’t use that information to threaten you.

Protect Your Information

Sometimes fake debt collection callers want more than your money. They may also try to trick you into giving them enough personal information that they can steal your identity or sell the information to people who would. Protect your information by being careful what you say to these callers. Never answer questions like “Can you confirm your full name or your Social Security number” if someone calls you about a debt. If they called you, they should have the information they need to collect the debt and shouldn’t ask you to provide it.

Contact the original creditor to find out more about the debt, whether you think you owe it or not. If you do owe the debt, you may be able to negotiate a payment with the original creditor that’s less than you’d pay a debt collection agency.

Understand Your Rights

There are rules for sending someone to collections that businesses must follow, and there are also rules that govern how debt collectors pursue debts. For example, no collector can harass you, and if you’re being harassed, it could be a sign that the agency isn’t legitimate. If you’re on the phone with a debt collector threatening to serve papers, your best defense is knowing what laws are on your side.

File a Complaint

You can submit a complaint with the Consumer Financial Protection Bureau if you believe a debt collector is violating your rights or you’ve been targeted by a debt collection scam. You can also file a complaint with your state’s attorney general’s office.

Debt collection scams can be a sign that your information is at risk. To run one of these scams, someone has to have enough information to come up with a plausible-sounding debt in your name and contact you. It may be a good idea to freeze your credit report with the credit bureaus. That means no one can pull your credit report for the purpose of evaluating you for a loan or other debt unless you unfreeze your report—and no one impersonating you can cause that to happen, either.

Remember Some Debt Is Legitimate

Finally, remember that some debt is, unfortunately, legitimate. It may be shocking to hear from a collection agency about an old debt, but that doesn’t mean you don’t owe it. While you can ask that the debt collection agency stop contacting you, if the debt is real, you still owe it. Failing to pay it could result in a lawsuit or further action to collect from you.

Getting Back on Track After a Debt Collection Scam

If you think you’ve been the target of any type of financial scam, including a debt collector scam, it’s important to work to get your credit information and other accounts in order as soon as possible. Working with a credit repair organization can help you attend to those details while continuing to live your life.

This article has been updated. It was originally published Feb. 3, 2015.

Source: credit.com

Apache is functioning normally

September 25, 2023 by Brett Tams

Buying a used car can lower the cost of your purchase, letting you move into car ownership with a much smaller loan. This might also be beneficial if you don’t have the credit or income to qualify for a loan amount that would cover a new car price. You might get an even better deal if you buy a used car through a private seller. However, it’s important to ensure you’re protected from scams and engaging in a safe transaction.

This piece covers how to buy a used car from a private seller. That includes how to get a loan for a used car from a private seller.

In This Piece

How to Buy a Car from a Private Seller

When you’re buying a car from a private seller, there are some additional concerns you may not have when buying a vehicle from a dealership. Private sellers don’t have consumer reviews and brand reputation you can consider. So, you have to do some legwork to ensure you’re getting a good deal and aren’t getting scammed. Follow the steps below to buy a car from a private seller.

Shop Around for Local Deals

Start by understanding what you can afford. If you want to know how to finance a private car sale, start by getting an auto loan first. You can apply for auto loans online or with a local bank. Once you get pre-approved, you know how much used car you can afford.

Not sure if you can get approved for a car loan? Get your credit score first to see your odds of being approved and work toward improving your scores before moving forward with your purchase.

Privacy Policy

Use your loan pre-approval or cash on hand to set a budget for your car purchase. Avoid going outside that budget so you don’t have a financial hardship once you buy the used car.

Get matched with a personal
loan that’s right for you today.

Learn
more

Start researching cars that fit your needs. Read about cars you’re interested in online, and look into different considerations for older models. This helps you know what type of common issues to look for when you start checking out cars from private sellers.

Next, review the cars available from private sellers in your area. You can research options on Facebook marketplace, Auto Trader, eBay and any local classified publications, such as your city’s newspaper.

Contact the Seller

Once you spot a potential new-to-you ride, start by making contact with the seller. Take some time to feel them out and ensure they’re legitimate. Avoid meeting anyone by yourself or in a location you’re not comfortable with. If the seller is willing to come to a public location with the vehicle, that’s best. If not, take someone with you when you go to their home.

Ask to test-drive the vehicle. If you can have a mechanic or someone you trust who knows a lot about cars look over the vehicle, do so. You can also look up the CARFAX report on the vehicle using its VIN. This database and others like it provide some information about the vehicle’s history, including potential accidents, service records and how many owners the vehicle might have had.

Once you’re confident you’ve found the vehicle for you, start negotiations.

Complete the Sale

Once you and the private seller agree on a price for the vehicle, move forward with the transaction. Make sure you get any agreement in writing to protect yourself in the future. You may also want to pay by check so you have a paper trail demonstrating that money changed hands for the car.

Verify ownership documents when you complete the sale. If the individual has the title on hand, they should sign it over to you at that time. If the seller owes money on the car, there’s a lien on the title. You’ll need a bill of sale indicating you paid for the vehicle. The owner will then take your money to their bank to pay off the car so they can get a title to transfer to you.

Complete the Paperwork

Even if you go through a private seller and not a dealership, buying a car requires lots of paperwork. You’ll need to:

Ensure you have a receipt or bill of sale documenting the purchase
Get the title from the seller at the time of purchase or after the fact
Go to the DMV with the title and ask for a transfer of ownership, which includes the completion of a form and getting a new title
At the DMV, you may need to pay tax, title and registration
Depending on your state, you may have to pay sales tax on the vehicle purchase

Bottom Line

Always have a plan when you’re making large purchases. Create a budget and stick to it to avoid overcommitting yourself financially. Do the research to protect yourself from scammers. If a deal seems too good to be true, it may be.

If you need a loan to buy a used car from a private seller, start by comparing auto loan rates. Then, you can prepare yourself with everything you need to help finance your new car.

Apache is functioning normally

September 24, 2023 by Brett Tams

You’ve done your research, checked your credit reports to make sure they’re accurate, and you’re ready to get serious about buying a car. You feel more than ready to sign on the dotted line and drive home in your new ride.

It could happen. Or, you could drive home in your old vehicle, kicking yourself for having forgotten one of the documents you need to finalize the purchase. Here’s how to lay the groundwork for getting the deal done on the day you’re ready to buy.

Four Steps to Prepare to Buy a Car

Step 1:

You’ll want to talk to your insurance agent about what it will cost to insure the make and model you are considering buying. You don’t want that figure to be a surprise, and you also want to find out how soon you will need to notify your insurer you have the new vehicle.

Step 2:

Talk to your bank or credit union and get pre-approved for the loan you’ll need—and do this close to your planned purchase date. You may get something resembling a blank check (up to a certain maximum) that must be signed by you and the dealer. By getting pre-approved, you will know the total loan amount and interest rate you qualify for. Even if you plan to finance at the dealer, it can’t hurt to come in with a pre-approval; you are far less likely to agree to a longer term or higher interest rate because you really want to drive that new car home today. It can also help you stay within your budget by serving as a solid reminder of how much you planned to spend and how long you were willing to make payments — before the showroom floor made it so hard to remember.

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loan that’s right for you today.

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Step 3:

Make sure you have your driver’s license and proof of auto insurance with you. You shouldn’t be driving without these documents anyway.

Step 4:

Obvious as this seems, be sure you have a way of funding your down payment. If it’s not cash, make sure the dealer accepts the form of payment you’re planning to use. (If you forget to do this, you would not be the first, but that would be little consolation.)

Expert Tip: Be cautious about having your credit pulled unnecessarily. Each inquiry made for the purpose of extending credit can cause a small, temporary decrease in your credit score. And while inquiries for the purpose of getting a car loan made in a two-week period should count as only one entry, we’ve heard from consumers who have told us their credit scores dropped as the result of multiple auto loan inquiries. Some dealerships now ask customers to fill out a credit application even before a test drive, and there are reports that some have checked credit without customer consent. It can help to keep an eye on your credit through this process for this reason. Hard inquiries into your credit require permission, and it can be illegal for your credit to be pulled without your approval in this manner. You can get a credit report summary and two credit scores, updated monthly for free on Credit.com, to track your standing.

Can You Purchase a Car with a Credit Card?

Speaking of your down payment, you may have wondered if this can be charged to a credit card — or if the entire car can be paid that way. The answer is yes and no. It is possible that the dealership will not accept a credit card payment for the car, as this can come with large merchant fees that lower their profits. However, if your credit is in good standing, then it is still possible.

A better option would be to use your credit card for just the down payment. Not only is this better for your credit, since using all of your available $10,000–$15,000 credit limit can damage your credit score, but it’s more likely to be accepted by the dealer.

Finally, you’ll want to use a credit card that has excellent benefits. An appropriate credit card can earn you big rewards on your car purchase or other auto-related purchases. We have given you a couple examples of worthy rewards cards below.

Planning to Trade In Your Car? Don’t Forget These Items for the Dealership

If you plan to trade in a car, you have a bit more to do.

You will need to bring the following items to the dealership:

Your car’s certificate of title (If it has gone missing, your state department of motor vehicles can tell you how to get it replaced.)
The car’s current registration
Your car keys and the owner’s manual
Your account number or a payment stub if you still have a car loan (We’re going to hope that if this is the case, your car is worth more than you owe.)
A clean car, paying special attention to areas out of sight but convenient for stashing things: under seats, over the visors, in the glovebox and in every corner of the trunk

Besides a new car, expect to come home with a good bit of paperwork. Pay special attention to the purchase and sale agreement. You will need the information there to get or update your insurance — and you might even need it at tax time next year if you bought a car that qualifies for a tax credit.

What Do I Need to Apply for an Auto Loan?

While you won’t need to drive all the way to a dealership to get an auto loan (you can simply apply online), you will still need some important documents in front of you to easily fill out the application.

What do you need?

Proof of identity through an ID or passport
Your credit report, which the lender can pull using your name, address, date of birth and social security number
A valid state-issued driver’s license
Proof of monthly income through pay stubs or social security income receipts
Proof of residence through mortgage statements or utility bills
Contact information for personal references (note: this may not be required)
Vehicle make and model
Proof of car insurance
Payment type (cash, credit, debit, etc.)
Your car’s registration if you are trading in the vehicle

The list is rather long, but having each document will speed up the process and prevent you from going back and forth between your files.

Get Your Auto Loan and Car with the Help of Credit.com

Make sure that you can qualify for an auto loan by checking your free credit score, provided through Experian. From there, you can apply for your auto loan with confidence and compare credit cards that can help you finance your new car.

Frequently Asked Questions

Will my credit rating affect my auto insurance rates?

You should choose auto insurance coverage based on your credit rating and overall coverage needs. Check out Credit.com for car insurance quotes and to compare rates.

How can I find a credit card with a low interest rate to charge my car purchase?

We don’t recommend that you put your entire purchase onto your credit card, but there are cards with low APR or no APR for up to 15 months available to compare. If you can pay off the remaining balance during this period, then these credit cards may be for you.

How good should my credit be to get a credit card that is appropriate for a car purchase?

Many of the best rewards credit cards with high credit limits require good or excellent credit. A good credit score is considered 700–749 and anything over 750 is considered excellent.

You mentioned that hard inquiries can affect my credit score. What is a hard inquiry?

A hard inquiry is a credit check that indicates you have applied for credit, usually through a loan. Each time a hard inquiry is pulled from a different lender, your credit score can drop by up to 10 points, because it indicates that a lender has reviewed your credit and that you are trying to open up a new line of credit.

Note: At publishing time, the Chase Sapphire Preferred® Card and American Express Green card are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

More on Auto Loans:

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Source: credit.com

Apache is functioning normally

September 24, 2023 by Brett Tams

Nobody wants to think about dying, which is why many people actively avoid planning for their death. Creating a will, buying life insurance, making funeral arrangements—none of these are fun Friday night activities. Not only can it be unpleasant to think about, but life insurance can also be incredibly difficult to figure out. In fact, only 57% of Americans have life insurance.

Part of a new trend of online companies offering life insurance, Bestow breaks down a sometimes complicated topic so you can easily apply for term life insurance to better help your family plan for the future.

About Bestow

Bestow makes the life insurance
application process easy. You can get a quote in seconds—and coverage in
minutes—when you apply online.

It offers 10- and 20-year term life insurance policies with coverage from $50,000 up to $1 million. Premiums are as low as $8 per month—and they never change throughout the life of the policy, so you’ll always know what to budget for. One of the biggest benefits of Bestow is that it doesn’t require a medical exam as part of the application process.

Insurance companies can be notorious for being stuffy. Lucky for you,
Bestow is technically a life insurance agent: it acts as an intermediary
between you and the insurance provider. Bestow
works specifically with North American Company for Life and Health Insurance®, a well-established life insurance company. So even
though Bestow is new, you don’t have to worry about your policy. Bestow makes
the application process simple, while North American
Company for Life and Health Insurance® issues the policies, plus processes and pays claims.

Who Can Use Bestow

According to the website, you need to be
between 21 and 55 years old, have never had a felony charge, and be generally
in “good health” to qualify for a policy offered by Bestow.
It doesn’t clarify what “good health” means, but the application process asks
questions about your medical history, lifestyle and hobbies. Bestow also says they will
not be able to extend coverage if you have been diagnosed or treated for cancer
in the past ten years. As of publication, 20-year policies are only available
to individuals younger than 45.

Bestow is currently available in every state except New York.

Application Process

Bestow uses data points and artificial
intelligence to determine premiums and coverage. Unlike many other companies that offer life insurance, Bestow does not
require a medical exam for coverage.

The application process pulls available data about you—such as prescription and credit history, driving records, and prior insurance applications—to make a decision.

To start, you’ll need to provide your
name, gender, birth date, height, weight, and state, as well as whether you use
nicotine. That’s all you need to get your free quote! If you like what you see,
you can create an account and answer a few more in-depth questions about your
health and lifestyle, including citizenship, employment, HIV status, and
disability. After you provide your Social Security number and sign, you’ll get your approval and final premium. Your final
number may be higher than your quote based on your health and lifestyle.

You also get a 30-day free “look” period:
you can cancel for a full refund within the first 30 days of purchasing.
Coverage continues through a 60-day grace period from the date of your last
payment.

Making Claims

Your beneficiaries can start the claim
process simply online as well. After you initiate a claim with Bestow, the
claim is processed by its insurance provider, North American Company for Life and Health Insurance®.
The beneficiary will need to provide information about themselves as well as
information about the insured person—including the original policy number.
After that, you’ll receive a claimant’s packet and will be required to fill out
more paperwork. If there is no dispute, your claim should be processed within
ten days.

Term Life vs. Whole Life

Bestow offers only term life insurance
policies. If you’re interested in a whole life insurance policy, you’ll need to
look elsewhere.

Term life insurance lasts only as long as
the policy, making it a good choice for people who want to cover a specific
time in their life—the length of their mortgage, or while their children are
still dependents living at home, for example. Because these policies do not
last as long, they tend to be less expensive than whole life policies.

Benefits of Bestow

So you’ve spent your Friday night
deciding you want to get life insurance.
Congratulations! Why should you choose Bestow? Here are some reasons why you
might:

No medical exam required
Low premiums
Easy application

As with everything, though, there are
some downsides to getting a policy through Bestow:

No whole life policies available
Relatively low coverage capped at $1 million
Not available to people over 55

Why Get Life Insurance

If you have dependents—people who depend on your income, like your children, spouse, or older parents—life insurance is a way to help ensure that they will be covered should something happen to you. If you’re ready for a free quote from Bestow, check it out now!

Source: credit.com

Apache is functioning normally

September 23, 2023 by Brett Tams

The Fannie Mae Flex Modification Program (FMP) is a mortgage assistance solution designed to relieve borrowers facing financial hardship.

Are you looking to improve your mortgage management but don’t know where to start? Handling mortgage payments is challenging, especially if you’re facing economic difficulties and don’t know where or how to get financial assistance. The Fannie Mae and Freddie Mac Flex Modification Program may be the solution you’re looking for.

Learn what you need to know about the Flex Modification Program: how it works, who qualifies for it, and how you can apply. This comprehensive guide will help you understand the many benefits of FMP for a more stable financial future.

In This Piece:

What Is the Flex Modification Program?

The Fannie Mae Flex Modification program is a mortgage assistance solution designed to relieve borrowers facing financial hardship. This program offers a flexible framework for loans that helps eligible borrowers to modify their monthly mortgage payments and avoid foreclosure.

Modifying the loan terms can make mortgage payments more affordable and sustainable for struggling homeowners.

Get matched with a personal
loan that’s right for you today.

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How Do Fannie Mae and Freddie Mac Work?

The mortgage market has a few essential entities, including the government-sponsored enterprises called Fannie Mae and Freddie Mac. Their approach allows lenders to free up funds to provide more mortgage loans to borrowers.

But how does it work? Fannie Mae and Freddie Mac helped make mortgages more accessible by buying them from lenders. This allows lenders to have more money available to provide new mortgages to borrowers or invest in other financial opportunities. For example, if a lender originates a mortgage, they can sell it to Fannie Mae or Freddie Mac, who then include it in their portfolio or package it into mortgage-backed securities.

How Flex Modification Works

The Flex Modification Program offers loan modifications to eligible borrowers experiencing financial hardship. Here’s a breakdown of how the program operates:

Eligibility Requirements:

You must have a mortgage loan owned or guaranteed by Fannie Mae or Freddie Mac.
The mortgage loan must be at least 60 days delinquent or at risk of imminent default.
You must demonstrate a hardship that affects your ability to make timely mortgage payments.

Modification Terms:

The program aims to reduce your monthly mortgage payment to 20% or more below your pre-modification.
The modification may involve adjusting the interest rate, extending the loan term, or forbearing a principal portion.
The goal is to make the mortgage payment more affordable while ensuring it’s sustainable for you.

Application Process:

Apply to the Flex Modification Program through a loan servicer.
The loan servicer will assess your eligibility and collect the necessary documentation.
Once approved, the loan servicer will work with you to finalize the modification terms.

Why Should You Consider the Flex Modification Program?

Before considering the Flex Modification Program, it’s essential to understand its potential pros and cons.

Pros:

Lower monthly payments: The program aims to reduce your mortgage payment to a more affordable level, making it easier to manage your finances on time.
Protection from foreclosure: By modifying your loan, the program can help you avoid the devastating consequences of foreclosure.
Improved financial stability: By participating in the Flex Modification Program, you can regain control of your financial situation. Providing you with a sense of stability and peace of mind, allowing you to focus on rebuilding your financial health.
Simplified application process: Applying for the program is relatively straightforward, and you can work directly with your loan servicer to navigate the process.
Potential principal reduction: The FMP may offer this, which means that a portion of the outstanding loan balance could be forgiven or deferred, reducing the overall amount owed. This can be particularly beneficial if you owe more on the mortgage than your current property value.
Preservation of homeownership: One of the primary goals of the FMP is to help borrowers preserve their homeownership. The program offers a viable alternative to foreclosure by providing a framework for loan modifications.

Cons:

Extended loan term: Modifying your loan may result in a more extended repayment period, meaning you’ll make mortgage payments for longer.
Impact on credit score: While participating in the program doesn’t directly affect your credit score, the delinquency prior to modification might be reported on your credit report.
Limited availability: The program is specifically for Fannie Mae or Freddie Mac borrowers with owned or guaranteed loans. You won’t qualify for this program if either entity doesn’t back your loan. However, other programs may exist. Contact your lender if you’re struggling to make your mortgage payments.

Remember, these pros and cons will vary based on your circumstances. It’s essential to consult with your loan servicer and thoroughly review the modification terms to understand the potential benefits you may receive from participating in the program.

Who Qualifies for the Flex Modification Program?

The Flex Modification Program is designed for borrowers struggling with mortgage payments due to financial hardship.

To qualify for the program, you must meet the following criteria:

Loan ownership: The mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
Delinquency or imminent default: Borrowers must be at least 60 days delinquent on their mortgage payments or at risk of imminent default.
Demonstrated hardship: Borrowers need to demonstrate a hardship that affects their ability to make timely mortgage payments. Hardships may include job loss, income reduction, medical expenses, divorce, or other significant life events.

Additionally, you must comprehend what a “hardship” entails to be considered for a loan modification. Each situation is evaluated individually, but common examples of hardships include loss of income, disability, serious illness, divorce, or the death of a co-borrower.

How to Apply for the FMP

If you believe you meet the eligibility requirements for the Flex Modification Program, you can follow these steps and tips to apply:

Gather documentation: Prepare the necessary documents, such as proof of income, bank statements, tax returns, and any other documentation required by your loan servicer.
Contact your loan servicer: Inform your loan servicer about your interest in the Flex Modification Program.
Complete application forms: Your loan servicer will provide the necessary forms and guidance to complete the application process.
Submit documentation: Submit all the required documentation and the completed application forms to your loan servicer.
Follow up and provide additional information: Be proactive in promptly following up with your loan servicer and providing any additional information they request.
Review and accept the modification terms: Once your loan servicer evaluates your application, they will provide you with the proposed modification terms. Review them carefully and, if acceptable, sign and return the necessary paperwork to proceed with the modification.

Remember, each loan servicer may have a specific application process, so it’s crucial to communicate directly with them to ensure you have all the necessary information and are following the correct steps. Having to redo the application process due to easily-avoided mistakes is the last thing you need.

Other Mortgage Payment Help Options

What if I don’t qualify? What can I do? Other mortgage payment assistance options are available if the FMP is not the right fit.

Fannie Mae and Freddie Mac offer additional programs catering to different circumstances. Some of these options include:

Home Affordable Modification Program (HAMP): This aims to help homebuyers struggling with financial hardship and mortgage payments.
Repayment plan: Allows you to catch up on missed mortgage payments by adding a portion of the past-due amount to your regular expenditures over an agreed-upon period.
Forbearance: Temporarily suspends or reduces your mortgage payments with this program. It can be for a specific period, providing short-term relief during financial difficulties, so you can reassess the situation.

But before you move forward with one of these, it’s essential to analyze your alternatives and consult with your loan servicer to determine the best course of action based on your specific circumstances.

FAQs

Let’s address some frequently asked questions about the Flex Modification Program:

Does the Flex Modification Program Affect Your Credit Score?

Participating in the Flex Modification Program doesn’t directly impact your credit score. However, the delinquency prior to modification might be reported on your credit report

What if Fannie Mae or Freddie Mac Doesn’t Own My Loan?

If your loan isn’t owned or guaranteed by Fannie Mae or Freddie Mac, you won’t be eligible for the Flex Modification Program. However, you should contact your loan servicer to inquire about other available mortgage assistance options or loan modification programs specific to your loan type.

How Long Does the Flex Modification Program Last?

The duration of the Flex Modification Program varies depending on the specific terms of the modification. Typically, the program aims to provide long-term mortgage relief by modifying the loan terms to make payments more affordable and sustainable for the borrower.

The revised terms may involve extending the loan term or adjusting the interest rate. It’s important to discuss the duration of the modification with your loan servicer, as it will depend on your circumstances and the terms agreed upon.

Can I Qualify for the Flex Modification Program if I’ve Previously Received a Loan Modification?

If you have previously received a loan modification, you may still be eligible for the Flex Modification Program. However, the specific requirements and eligibility criteria may change depending on your previous modification and the current guidelines set by Fannie Mae and Freddie Mac.

It’s crucial to communicate with your loan servicer and provide them with all the necessary information regarding your previous modification. They will assess your eligibility based on your unique circumstances and guide you through the application process.

Remember, these answers are general guidelines, and you must consult with your loan servicer to get accurate and personalized information based on your situation.

What Are the Next Steps?

The Fannie Mae Flex Modification Program provides borrowers with a potential lifeline during financial hardship. It aims to make mortgage payments more manageable and sustainable by offering loan modifications. If you’re facing challenges with your mortgage payments, exploring the Flex Modification Program and other mortgage payment help options can help you find the assistance you need.

To take control of your mortgage management and improve your financial well-being. Consult with your loan servicer for accurate and personalized information based on your situation, and research different mortgage rates to make informed financial decisions.

Source: credit.com

Apache is functioning normally

September 23, 2023 by Brett Tams

Are you thinking about selling your engagement ring? People sell their engagement rings for all sorts of reasons, such as no longer being in a relationship or inheriting a ring. Whatever your reason may be, you can most likely sell your engagement ring and make extra money. You can use this extra money towards paying…

Are you thinking about selling your engagement ring?

People sell their engagement rings for all sorts of reasons, such as no longer being in a relationship or inheriting a ring.

Whatever your reason may be, you can most likely sell your engagement ring and make extra money.

You can use this extra money towards paying off debt (like credit card debt or student loans), starting an emergency fund for unexpected expenses (like medical bills, vet visits, or house repairs), putting the money into your retirement savings, or even saving for financial goals (like a home deposit, buying a car, or going back to school).

Today, you’ll learn how to:

Get your engagement ring appraised
Negotiate for the highest price
Find the best place to sell your engagement ring

And, of course, the step-by-step process of how to sell an engagement ring!

How To Sell An Engagement Ring

How much is an engagement ring worth?

Before you sell your engagement ring, you should try and figure out how much it is worth.

One of the things to think about when valuing a diamond engagement ring is the “4 Cs of a Diamond.” If you want to know where to sell diamond rings, first you must figure this out.

The 4 Cs stand for:

Carat – This is the size of the diamond. Larger diamonds are usually worth more money.
Cut – This is not the diamond shape. Instead, this is the quality of the diamond’s cut which will impact how beautiful and brilliant the diamond is.
Color – A diamond’s value increases with less color, as a completely colorless diamond is worth more.
Clarity – Clarity is all about the imperfections and blemishes that a diamond may have. The fewer there are, the more valuable the diamond.

Other things that may increase or decrease the value of your used engagement ring include:

Condition – The overall condition of the ring is important. A ring that has been taken care of and shows minimal signs of use will typically hold onto more of its value in comparison to a ring that displays noticeable wear and tear.
Resale market – Rings with a popular style or from a well-known designer may see a higher price when resold.
Certification and documentation – Having a document such as a diamond grading certificate can help determine the quality of the ring.
Designer and brand name – Rings from certain designers or brands (such as Cartier or Tiffany & Co.) tend to have a higher resale value due to their reputation and craftsmanship.

Even though a pre-owned engagement ring may have a lower value compared to a new one, it can be a great value for buyers looking for a high-quality ring at a more budget-friendly price. And, that is why people buy them – they can save some money over a new ring.

Recommended reading: 8 Items To Sell Around Your Home For Extra Money

Gather documentation for your engagement ring

If you’ve decided to sell your engagement ring, it’s time to collect all of your paperwork related to the ring such as the diamond’s certification, receipts, and appraisals.

These documents will help figure out the ring’s value, establish its authenticity, and make the process of selling a little more smooth.

Here’s a list of the paperwork you might need:

Appraisal certificate – The appraisal certificate is a professional evaluation of the engagement ring. This document includes details about the diamond’s cut, color, clarity, carat weight, and quality.
Original receipt – Having the original receipt from the purchase of the engagement ring will help show that the ring is authentic.
Diamond certification – If the diamond was graded and certified by a recognized gemological laboratory, this can be helpful.
Gemstone certificates – If your engagement ring has other gemstones besides diamonds, include these certificates for the stones as well.

You don’t need any paperwork to sell an engagement ring, but, it can make things a little easier and may get you a little more money.

How to get an engagement ring appraised

Getting an engagement ring appraised by a certified gemologist or jewelry appraiser will give you an accurate estimate and valuation of how much your engagement or wedding ring is worth.

This can help you when negotiating (such as with a pawnshop) and simply knowing the amount that you should be looking for when selling your ring.

You can get your engagement ring appraised by:

Looking for appraisers – You can search online for certified gemologists or jewelry appraisers in your area. You can also ask local jewelry stores for their recommended appraisers. It’s important to find an appraiser with credentials from places such as the Gemological Institute of America (GIA), the American Gem Society (AGS), or the International Society of Appraisers (ISA).
Contacting the appraiser – Call the appraiser and ask for their fees and to schedule an appointment. You may need to bring documents such as receipts, certificates, or previous appraisals for the ring.
Getting the ring appraised – Take the engagement ring to the appraiser. They will examine the engagement ring’s characteristics including the diamond’s cut, color, clarity, and other important factors.
Receiving the appraisal report – Once the appraisal is done, the appraiser will provide you with the report. This report includes information about the ring’s characteristics as well as an estimated value based on the current market. Ask the appraiser any questions you might have or if you need a question answered.

Where to sell an engagement ring

Now is the time to look at your different options for selling the ring. You can sell engagement rings at jewelry stores, pawn shops, online marketplaces, auction houses, consignment shops, and more.

Some things that you will want to about when deciding where to sell your engagement ring include the amount that they are giving you (of course, you want the most money, right?), the fees that they may be charging to sell your ring, how much work it will take you to sell it (for example, do you have to create the listing or do they?), whether you feel safe meeting someone to exchange the ring for cash in-person, and more.

As you can see, there are going to be pros and cons for each of the places where you can sell your jewelry.

Below, I go further into each of the best places to sell an engagement ring:

1. Sell your engagement ring online in a marketplace

If you want to sell your engagement ring, one of the best ways to get the most money for it is to sell it online.

Selling your engagement ring online can be convenient and also help you reach a wider audience of possible buyers.

Some of the different places you can sell an engagement ring online include eBay, Facebook Marketplace, and Craigslist.

Here’s a step-by-step guide to help you sell your engagement ring online:

Make your ring presentable – You should clean your ring and take quality photos of it from different angles.
Choose the marketplace – There are many different sites to sell your engagement ring like eBay, Craigslist, Facebook Marketplace, specialized jewelry-selling websites, or online auction sites.
Create a detailed listing – In the listing, write a detailed description of the ring along with its condition and any unique features. Be honest about any imperfections. When listing your ring for sale, you should also describe the ring, such as the diamond’s cut, color, clarity, and carat weight.
Set a price – You should research similar engagement rings or get your ring appraised to find the most accurate price based on current market value.
Shipping – If you’re shipping the ring, make sure to package it securely to prevent any damage in transit and also pay for shipping insurance.

2. Sell your engagement ring on Worthy

Similar to the above, some websites are dedicated to selling jewelry and valuables, such as Worthy.

Worthy does not buy your engagement ring directly as that is not their business model, but they will clean it up and sell it for you.

Worthy makes it really easy to make money with your engagement ring and this is the best place to sell engagement rings online. You simply ship your jewelry to their office with a prepaid shipping label (a FedEx label) that they give you (it’s insured as well). Then, once they get the ring, they prep it for auction. They will clean the ring, take professional photos of it, and grade it.

After that, your ring will go up for auction, and professional jewelry buyers can bid on it. You can set a reserve price that you are comfortable with. Once the auction is done, you will receive the final sale amount after Worthy’s fee. Payment is then sent to you within 1-5 days.

The whole process typically takes around 2 weeks from shipping to getting paid.

So, what are Worthy’s fees? They do almost all of the work for you, so it makes sense that they would charge a fee. They take 18% for up to $5,000. After that, it is a 14% fee for $5,001 to $15,000, a 12% fee for $15,001 to $30,000, and a 10% fee for over $30,000.

So, for example, I found a 1-carat diamond ring on Worthy that eventually sold for $2,792. That means the seller received around $2,289 after the 18% fee that Worthy charges.

3. Work with a jeweler

Jewelers may offer to buy your engagement ring. You can simply call around local jewelry stores near you and ask if they buy used engagement rings.

Sometimes this can be the most straightforward and convenient option for selling your engagement ring as you can possibly sell your ring the same day.

To sell your engagement ring to a jeweler, you will want to look for jewelry stores near you and give them a phone call to see if they buy used engagement rings. I recommend looking for ones with positive reviews.

If you have any documentation for your ring then make sure to bring it with you so that you can show the jeweler.

If they are interested in your engagement ring, then they will give you an offer. If you’re happy with the offer, then you can ask any other questions and possibly sign paperwork to get your cash.

Jewelers may offer instant payment either via cash, check, or electronic transfer and you will want to confirm the payment method before completing the sale.

4. Sell your engagement ring to a consignment shop

You may decide you want to sell your used engagement ring to a consignment shop. Consignment shops have benefits such as offering exposure to multiple buyers. However, they likely charge a commission fee.

To sell your engagement ring through a consignment shop, you will want to Google search for consignment shops in your area and specifically look for shops that sell jewelry or high-end items (make sure the shop has good reviews and even testimonials of previous successful sales of engagement rings).

Once you have an idea of which consignment shops you’re interested in selling your ring at, you should ask them questions about their consignment process, what commission rate they charge, and the terms of the sale.

Then, you’ll give the shop the ring to display in their store.

The consignment shop handles the transaction if someone is ready to buy the ring. You’ll receive payment after the commission fees are taken out.

5. Sell your wedding ring to a pawnshop

When people think about where to sell an engagement ring, one of the first places they think about is probably a pawn shop.

And, it makes sense – pawn shops make it very easy and you can sell your engagement ring for cash here. You can most likely even get paid on the same day!

But, you should keep in mind that they usually give you the lowest amount of money.

If you want to sell your old wedding ring to a pawn shop you will first want to make sure the ring looks nice and clean because that can help you get a better price. Get any papers you have about the ring, like appraisals or certificates, to show how much it’s worth, and make sure you know this number before you go in because you will most likely have to negotiate.

Now, when selling at a pawn shop, you can typically negotiate. To do so, you will want to find out the ring’s value, current market trends, and comparable sales. You can even make a better case for your price by showing documents on the ring and appraisals from certified gemologists. If the pawn shop cannot meet that price, you may just want to move on and try to find another buyer.

When the pawn shop makes an offer, remember they need to make a profit too, so it might be lower than you expect. If you’re not happy with the offer, you can try selling it to someone else. If you agree to sell it, you’ll need to show some ID, sign some papers, and then you’ll get paid.

Frequently Asked Questions

Below are answers to common questions about how to sell an engagement ring.

Is it possible to sell an engagement ring?

Yes! Many places buy engagement rings and wedding rings so that you can make money.

How much can you get for selling your engagement ring?

The amount of money that you can get for selling your engagement ring will vary and usually, you can earn anywhere from around 20% to 60% of what was originally paid for it. Yes, this is a wide range (and can mean a difference of hundreds or even thousands of dollars) and this is because there are so many factors that come into the price, such as the condition of the ring, the market demand, and where you decide to sell it.

How much can I sell my 1 carat engagement ring for?

A 1-carat diamond engagement ring will vary due to the 4C’s (cut, clarity, color, and carat). Usually, you can earn around $1,000 to $5,000 for selling a used engagement ring that is 1 carat.

Is it better to sell or pawn an engagement ring?

This depends – do you want to get the ring back? If you decide to sell it, you can get cash right away. This is a good option if you need money quickly.

On the other hand, if you decide to pawn it, the ring can be used as collateral for a loan. This can be a temporary solution if you just need cash right now but you want to get the ring back later. However, it’s very, very important to carefully read and understand the terms and interest rates from the pawnshop so that you can eventually get your ring back.

Why is the resale value of diamonds so low?

So, you may be thinking “But, I paid $10,000 for this ring! Why am I only getting a few thousand dollars?”

You most likely won’t get the same price that the engagement ring was bought for. This is because places that buy your engagement ring still need to make a profit. Plus, they aren’t going to sell the engagement ring for the same price as a brand-new ring.

How can I be safe when selling a ring?

If you aren’t shipping the ring but are meeting in person instead, then you must be careful. You should avoid sharing personal information until you’re 100% sure they are the person they say they are.

I also highly recommend meeting in a public place, such as a police station parking lot. Bringing a family member or friend with you to the appointment or meeting is good so that you aren’t alone. Make sure to use secure payment methods like cash and do not share bank account information, your social security number, or any other sensitive information (buyers do not need this information!!). Also, ignore requests to send the ring before receiving payment and make sure the payment has cleared before proceeding.

Where to sell my wedding ring after a divorce? Is it OK to sell a wedding ring after divorce?

Many people sell their wedding rings after a divorce. If you decide to do so, you can sell your wedding ring on sites like Worthy, Facebook, eBay, and more. Before you sell your engagement ring, though, you should make sure that the ring is legally yours (check your divorce agreement).

How long does it take to sell an engagement ring?

The amount of time that it takes you to sell an engagement ring depends on where you are selling it. For example, selling a ring on Worthy will take around 2 weeks (it takes a little longer to sell on Worthy, but you may get the best price for your diamond jewelry this way because they have many diamond buyers). Whereas, selling it to a pawn shop may mean that you get paid the same day (however, it’s typically for a lot less money).

What is the best way to sell an engagement ring?

The best way to sell your engagement ring depends on what you’re looking for and there is no one best answer for everyone. Do you want to sell your ring for the most money? Or, do you want to sell your engagement ring as fast as you can? Some people may want to just sell the ring to a pawn shop and get it over with. Others may want to take their time and sell it online so that they can get the most money.

How To Sell An Engagement Ring For The Most Money

I hope you enjoyed this article on how to sell your engagement ring for the most money.

Deciding to sell an engagement ring is a big decision to make as you may have an emotional connection to it. Due to this, you should take your time deciding what to do and choose the option that feels best for your situation.

Some of the best places to sell diamond rings include online (such as through Worthy or eBay), or in-person at a consignment shop or to a local jeweler. Many of the places above can be used for selling other pieces of jewelry as well, such as fine jewelry, bracelets, necklaces, earrings, and more.

Each place has its pros and cons. Some will pay you a lot more than others, but some may be much easier and quicker.

I hope you can find the best place to sell your engagement ring and that you get the most money!

Have you tried selling an engagement ring? What do you think is the best place to sell an engagement ring?

Source: makingsenseofcents.com

Apache is functioning normally

September 22, 2023 by Brett Tams

Article originally published December 13th, 2017. Updated February 16th, 2023.

Buying a home is an extensive process. It includes marshaling your assets, reviewing your credit—and potentially trying to improve it—and shopping for a house that meets your wants and needs. That’s all before you enter the process of applying for a mortgage and considering your offers.

The process can be daunting, but it’s important to take one step at a time to avoid becoming overwhelmed. One area where people become especially concerned is the overall cost of a home loan. Securing a mortgage can be challenging, but how can you get a good interest rate to reduce the long-term cost of your home?

Here are some tips to help you get the best rates for mortgages. Just remember that many of these tips take time, so plan months or even years ahead for your homebuying journey.

In This Piece

Tips for Getting the Best Interest Rate on Your Mortgage

When you’re looking to secure a mortgage or get the best possible interest, personal finances really matter. Our tips include those related to your credit history, savings and income, along with some advice about educating yourself on mortgage terms and interest types.

Understand Interest Rate Types: Fixed vs. Adjustable

A fixed-rate mortgage has the same interest rate throughout the loan’s entire life. This makes your rate and monthly payment predictable and consistent. An adjustable-rate mortgage comes with an interest rate that can change—and often one that could increase if interest rates in the market increase. This can make your rate and monthly payment unpredictable.

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Knowing your plans for the future can help you understand which type of interest rate is best for you. If you only plan to hold on to the home for a few years before selling it to upgrade, an adjustable-rate mortgage—or ARM—might work for you. This is especially true if interest rates are currently low, as an ARM loan tends to start with lower rates than fixed-rate mortgages when all other factors are equal.

Keep Your Credit Healthy

You do typically need decent credit to secure a mortgage, but there are options for those with lackluster credit. While the credit score required to buy a home depends on many factors, the better your score, the better rates you may be able to command. Interest rates are a huge factor in how much your monthly payment is. Better credit typically equals more favorable rates, which equals lower monthly payments.

Make a Bigger Down Payment

The larger your down payment, the lower your overall loan amount is. That can lead to a lower interest rate when you secure a mortgage. That’s because your interest rate is partially based on your home’s loan-to-value, or LTV.

For example, if a home is worth $200,000 and the loan is for $199,000, that would be considered a high LTV and is riskier for a lender. That could lead to a higher interest rate. If the ratio is lower, however, you might be rewarded with a lower interest rate.

Have Stable Income

If you can prove that your line of work is in high demand with no sign of slowing down, or if you work for a large, profitable company, your lender may take this into account when processing your paperwork. Income stability demonstrates that you’re less likely to miss mortgage payments.

You can also demonstrate income stability by income history. Documents that show a stable income, such as check stubs, W2 forms and tax returns, might all be required by a mortgage lender when evaluating you for a loan.

Lower Credit Utilization Ratio

Credit utilization refers to how much of your available credit you’re actively using. A high credit utilization rate occurs when you use a large percentage of your available credit. For example, if you have $10,000 total in credit limits across your credit cards and you have a total balance of $5,000, that’s a credit utilization rate of 50%.

The Consumer Financial Protection Bureau notes that keeping your credit utilization at 30% or lower helps improve your credit score, which can lead to better interest rates for mortgages. It can also ensure mortgage lenders don’t see you as using credit in a desperate or risky way, making them more likely to approve you and offer better rates.

Make Mortgage Point Payments

It’s possible to pay extra directly to your lender to lower your interest rate. For every one percent of your loan amount you’re willing to pay upfront, you may be able to get as much as half a percent off your home loan interest rate. Essentially, you’re just paying a larger amount of interest upfront, and this is known as buying points.

Have Enough Savings

Most people know they should have enough savings to cover about 6 months’ worth of bills. Proving to your lender that you can still pay your mortgage in the event of a job loss because you have cash on hand can help you score a lower interest rate.

A Final Word on Getting the Best Interest Rates for Mortgages

Keeping your finances healthy is the best way to protect yourself when applying for loans. Do the work ahead of time to ensure you’re ready to apply for a mortgage. Then, you can start by comparing rates online to secure a mortgage that works for you.

Source: credit.com

Apache is functioning normally

September 22, 2023 by Brett Tams

When you take out a mortgage, whether it’s a refinance or a home purchase, you may come across the phrase “cash to close.”

Virtually all mortgages require some financial contribution from the borrower to fund the loan.

It might be down payment funds, it might be lender fees, or it might be prepaid charges like property taxes and homeowners insurance.

There’s a good chance it’ll be a combination of these things, which will need to be paid at closing via a verified account.

Let’s talk more about the meaning of cash to close, how it’s calculated, and how it’s paid.

Cash to Close on a Home Loan Is More Than Just Closing Costs

If you look at your paperwork, you should see a list of closing costs associated with your home loan.

You can see estimates of these costs on both your initial Loan Estimate (LE) and also on your Closing Disclosure (CD).

And when it’s about time to close your loan, on the settlement statement prepared by your escrow officer or real estate attorney.

On these documents, you should see things like the loan origination fee, underwriting and processing fees, and other lender fees.

Additionally, there will likely be a charge for an appraisal, along with a charge for title insurance, homeowners insurance, and escrow services.

Under that escrow/title umbrella, more fees will be listed, such as courier fees, wire fees, notary fees, loan tie in fees, settlement fees, and on, and on.

There will also be recording fees and transfer taxes, along with prepaid items such as X number of months of taxes or insurance.

That’s the closing cost piece, which includes both lender fees (if applicable), and third-party fees, such as the insurance, appraisal, title/escrow.

Pretty straightforward, but we also have to consider the down payment, any deposit such as earnest money, and any seller or lender credits.

Then some math needs to be done to figure out the final amount due, which is, drumroll, the cash to close.

Fortunately, there’s a section on the LE and CD called “Calculating Cash to Close,” which breaks it all down for you.

How to Calculate Cash to Close: An Example

It’s probably easier to look at an example rather than keep talking about it. So check out the screenshot above, taken from a Closing Disclosure.

As you can see, it lists total closing costs, down payment funds, deposits, and credits.

In this example, the purchase price is $852,500 and the home buyer is putting down 20% to avoid mortgage insurance and get a better mortgage rate.

They’ve got $12,432.26 in closing costs, of which $435 was paid out-of-pocket before closing for an appraisal.

The borrower made a $25,875 earnest money deposit for 3% of the purchase price as well, which was originally $862,500 before a slight price reduction.

They didn’t finance any closing costs, nor did they receive any funds via the transaction.

But they did get a seller credit of $7,500 and a $4,372.88 rebate from their real estate agent.

So to tally it up, we have $182,932.26 in total costs, and $38,182.88 in credits.

That means the borrower still owes $144,749.38, which is the remaining balance after their deposit and various credits.

It covers the remaining down payment and remaining closing costs, and is typically wired to escrow at closing.

What About Cash to the Borrower?

Now let’s look at a cash out refinance. In this case, there is cash going to the borrower at closing because they’re tapping their home equity.

So instead of sending money to the lender, the bank is sending money to the borrower.

In this example, the borrower also took advantage of a lender credit, which offset nearly all of their closing costs.

Their loan payoff on their existing mortgage was $618,070 and the new loan amount was $780,000.

That would send $161,930 to the borrower, but once we subtract the $297 in remaining closing costs, it’s $161,633.

Sending the Cash to Close: Some Things to Remember

When it comes time to send your cash to close funds, you’ll likely do so via wire, or possibly a cashier’s check.

Either way, the funds must come from a sourced account that was verified during the underwriting process.

For example, a bank account you verified earlier on by connecting it in the digital application or uploading monthly statements.

This way they know the money is actually coming your own funds, and not some other unverified source.

If it does come from a non-sourced account, it could delay your loan closing and cause a lot of headaches.

Remember, such funds should also be seasoned for at least two months prior as well, meaning in the account and untouched for 60+ days.

Again, this ensures the funds are your own and not someone else’s, or worse, a loan, which you deposited into your own account.

If you have questions about what is owed, it’s always helpful to speak directly with the settlement officer, who can go over everything with you line by line.

That way you know exactly what you owe, why you owe it, and most importantly, where exactly to send it.

To summarize, there are a lot of costs associated with a home loan, many of which you won’t be aware of until you go through the process yourself.

This is why it’s imperative to get a robust mortgage pre-approval and set aside funds well before beginning your home search.

Source: thetruthaboutmortgage.com

Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

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1. Collect All Your Paperwork in One Place

2. Create a Budget and Determine What You Can Pay Every Month

3. Manage Your Debts in Collections

4. Consider Your Options

5. Try to Reduce Your Interest Rates

Upgrade Triple Cash Rewards Visa®

Do Your Best to Pay More Than the Minimum

Consider More Options for Getting Out of Debt

How to Avoid Getting into Debt

9 Tips for Preventing Debt Collection Scams

About Debt Collection Scams

Verify the Debt Is Legitimate

Verify the Agency Is Legitimate

Check Your Credit Reports

Protect Your Information

Understand Your Rights

File a Complaint

Remember Some Debt Is Legitimate

Getting Back on Track After a Debt Collection Scam

In This Piece

How to Buy a Car from a Private Seller

Shop Around for Local Deals

Contact the Seller

Complete the Sale

Complete the Paperwork

Bottom Line

More Money-Saving Reads:

Four Steps to Prepare to Buy a Car

Can You Purchase a Car with a Credit Card?

Planning to Trade In Your Car? Don’t Forget These Items for the Dealership

What Do I Need to Apply for an Auto Loan?

Get Your Auto Loan and Car with the Help of Credit.com

Frequently Asked Questions

More on Auto Loans:

About Bestow

Who Can Use Bestow

Application Process

Making Claims

Term Life vs. Whole Life

Benefits of Bestow

Why Get Life Insurance

What Is the Flex Modification Program?

How Do Fannie Mae and Freddie Mac Work?

How Flex Modification Works

Eligibility Requirements:

Modification Terms:

Application Process:

Why Should You Consider the Flex Modification Program?

Who Qualifies for the Flex Modification Program?

How to Apply for the FMP

Other Mortgage Payment Help Options

FAQs

Does the Flex Modification Program Affect Your Credit Score?

What if Fannie Mae or Freddie Mac Doesn’t Own My Loan?

How Long Does the Flex Modification Program Last?

Can I Qualify for the Flex Modification Program if I’ve Previously Received a Loan Modification?

What Are the Next Steps?

How To Sell An Engagement Ring

How much is an engagement ring worth?

Gather documentation for your engagement ring

How to get an engagement ring appraised

Where to sell an engagement ring

1. Sell your engagement ring online in a marketplace

2. Sell your engagement ring on Worthy

3. Work with a jeweler

4. Sell your engagement ring to a consignment shop

5. Sell your wedding ring to a pawnshop

Frequently Asked Questions

Is it possible to sell an engagement ring?

How much can you get for selling your engagement ring?

How much can I sell my 1 carat engagement ring for?

Is it better to sell or pawn an engagement ring?

Why is the resale value of diamonds so low?

How can I be safe when selling a ring?

Where to sell my wedding ring after a divorce? Is it OK to sell a wedding ring after divorce?

How long does it take to sell an engagement ring?

What is the best way to sell an engagement ring?

How To Sell An Engagement Ring For The Most Money