Financing Your Down Payment with Secured Debt
Buying a house is a milestone, no matter what stage of life you are at when you do it. Whether you are buying your first house or your fourth, it’s an exciting purchase. But it’s also a major purchase. Even if you have great credit, you will be looking at taking out hundreds of thousands of dollars in debt, and you will have to pay a sizable down payment. If you haven’t been saving, you will have to come up with some other way to make that deposit.
Unfortunately, you can’t typically finance a down payment. Part of confirming your credit worthiness for the mortgage is looking at whether you were able to put together the money for the down payment. Some programs are available to help with the down payment, but the requirements are strict, and not everyone qualifies.
Fortunately, you have other options. One of the best ways to come up with the money quickly is to sell valuable items such as jewelry and coins, or to use these items for secured debt such as a pawn loan.
Start with an Appraisal
Before you take your valuables anywhere to be sold, you need to know how much they are worth. What people will actually pay will vary widely, but you need to have a baseline for the negotiations. Knowing the worth of your valuables will give you that baseline. Then you can decide if you want to take any less (and how low you are willing to go), or you can know when you are getting a really great offer.
Visit a reputable appraiser specific to the type of valuables you want to sell. So if you are selling a coin collection near Phoenix, don’t go to someone known for being an estate jewelry appraiser. Go to an AZ certified coin collection appraiser. In some cases, you might be able to see someone who has multiple specialties, such as a silver and gold appraiser in AZ who can evaluate jewelry and coins.
Get Multiple Offers
There can be great fluctuation in what you are offered for your valuables depending on where you go and what time you go. For example, if you are selling gold coins or collectible jewelry, the offer can change depending on the price of gold or silver at that hour.
The best way to know that you are getting the most money for your valuables is to go to several shops and get multiple offers. Just make sure that you are doing it all within the same relative time period. Waiting a week to get a different offer will skew the results. The price of gold could have gone up on the market, for example, which is why you are getting a higher offer. Keep the variables about the same so you know that you are comparing “apples to apples” offers.
Compare Selling and Secured Loans
When you sell estate jewelry in Arizona or sell an AZ coin collection, for example, you can get cash immediately, but you may not get as much as you would get with a secured loan for the same items. That’s because the retailer has to resell those items to make a profit. With a secured loan, the vendor makes money on the interest.
You will have to evaluate the costs and benefits of selling your valuables for a little less versus getting a little more on the loan but paying the interest. Know that when you get a secured loan, your credit won’t matter much to get approved, but opening the loan will impact your credit, which can impact the terms of your mortgage (or your ability to get a mortgage). Use a secured loan to get only what you need for the down payment that you can’t cover through saving or selling valuables.
Secured debt is a great way to get the money you need to make a down payment on your new home. You just need to be informed so you can make the best choice for your finances.
Arrowhead Coin & Jewelry buys and sells precious jewelry, individual gold and silver coins, and whole coin collections in Arizona. You can give us a call to set an appiontment if you want to sell estate jewelry or if you need to talk to a coin collection appraiser. We can help you get the money you need to put together a down payment on a house or to meet other financial goals. We can also help you round out your collection or to get great buys on gold and silver as investments. Contact us in Arizona today to learn more.
Guest Blog Published by – Arrowhead Coin and Jewelry – Jeff Wuller
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