Before you start shopping for diamonds,consider dealing with a bonded jeweler. Bonded jewelers sell bonded diamonds, and there are very few bonded jewelers in the world. In fact, out of all of the jeweler’s in the world, only about 5% of them are bonded. Buying a bonded diamond will cost more than buying a non-bonded diamond, but when you look at what you get with the bonded option, you will see that it is well worth the extra expense.

First, bonded diamonds have a buy back policy for the life of the diamond. No matter how long you have had the diamond, you can take it back to the bonded jeweler and sell it back to him or her, for a 100% refund. If a jeweler does not offer a 100% buy back guarantee, for the life of the diamond, then you should take a closer look at the diamond to see what is wrong with it.

Bonded diamonds also have a breakage policy. If the stone breaks or chips, the bonded jeweler will replace it with a new one – one time. No jeweler would ever offer such a policy on any stone that was not 100% natural, so just the offer of such a policy should give you piece of mind concerning the quality of the diamond. Bonded diamonds are natural and untreated.

Bonded diamonds increase in value, with a fixed appreciation rate that is designed to keep up with inflation. This means that a diamond that is worth a certain amount of money today will be worth more in the future, as the price of diamonds continues to rise. This generally does not apply to buy backs, however. It typically applies to trade-ins.

Alternately, by purchasing a bonded diamond, you are protected against the possibility of a market crash. If a market crash occurs, the value of diamonds will drop. However, the bonded jeweler guarantees to refund you the difference between what the diamond is now worth and what you paid for it before the market crash.

It may be difficult to find a bonded jeweler in your area, but if you can, this is who you want to deal with, as opposed to dealing with an un-bonded jeweler. Specifically tell the jeweler that you are only interested in bonded diamonds. By comparing jewelley prices on line You can find a bonded jeweler in your area or by calling the local jewellery stores.

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Would you be willing to bet $300 of your own money that your home is worth what you think it is? Unless you’re ultra-competitive and will bet on pretty much anything, my guess is your answer would be a resounding “No!”

When you go to buy a home, or refinance your existing home, that’s exactly what you’ll be doing in most cases. This is one of the lesser known and most common mortgage ripoffs that occur because people outside the industry don’t know better. Knowing this and other mortgage financing secrets can save you hundreds or even thousands of dollars.

Purchasing a home, unless you’re independently wealthy, involves borrowing the majority of the purchase price from a lender, typically a bank. Before the lender will give you the money, they’re going to want some assurance that the property you’re going to buy is worth at least that much money, and in most cases more. It’s unusual these days to find any lender that will give you 100% of the value of a property. It’s typically 15-20% now. A far cry from the wild and woolly days before the mortgage market crash!

So, let’s say you want to buy a house. You go out and find the perfect house. You and the seller haggle back and forth and settle on a price of $100,000, just to keep the math simple.

Now you go find a lender and ask them to give you a mortgage. They tell you “Okay, we’ll give you $80,000.” You’re okay with that, so you proceed with the mortgage application.

As part of the mortgage application process, the lender will require an appraisal of the property. The appraisal must be done by a certified professional appraiser. The lender isn’t going to take the owner’s word for it!

Typically, the lender schedules the appraiser’s visit. The appraiser calls the property owner and arranges to visit the property. You, the applicant, are required to pay for the appraisal before it can take place. In my area, this fee is generally around $300.

So, you’ve now paid $300 to have the property appraised. If the appraiser agrees that the property is worth at least $100,000, no problem. The application process moves forward.

What if the appraiser says the property is worth less than $100,000?

Ready…?

You don’t get the loan, and, worse, you don’t get your $300 back! You just bet $300 and lost!

Lenders have been doing this for years and it’s become accepted as a way of doing business. People simply suck it up, pay the $300 and hope for the best. In recent years when property values were rising rapidly, this was rarely a problem, unless the seller had ridiculous expectations and the buyer no clue about the real value of the property. Nowadays, however, property values are declining and it’s much less certain that the seller, however well intentioned, really knows the value of their property.

Some reputable mortgage brokers have adopted a policy of paying for the appraisal out of their own pockets. This puts the onus on them to do their homework and have a good knowledge of the current property values in their area. From their perspective, it eliminates the possibility that they would have to call a potential customer and tell them they just blew $300.

The buyer will pay the appraisal fee as part of the normal closing costs, so it’s not like they don’t have the obligation to pay it. With the broker paying the fee first, this eliminates the risk on the part of the buyer and is simply good customer service. Shop around for mortgage lenders and brokers and always ask them who pays the appraisal fee!

This is just one of today’s money secrets that can help you navigate the rubble of the mortgage industry without getting scammed!

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