Tag Archives: lending

Tara Mortgage Services featured blog: Stop! Don’t Delay Closing Your Loan With These Mistakes

DHREA 05/07/2019
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(Each week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

You found the dream house, got approved for a mortgage at a payment you can afford and are now just waiting to close. Time to take it easy –maybe start shopping for new appliances or even look into taking that new job that’s closer to your new home.

Stop!

Making certain decisions before your loan has closed could jeopardize it. Why? Mortgages are approved based on current financial situations and making changes that affect your finances could cause problems.

Here are the top financial and life changes you want to avoid while waiting for your mortgage to close:

1. Opening new credit

Does your new home need a refrigerator? Perhaps a washer and dryer? If you’re a first-time homebuyer, chances are there are many big purchases that you need to make your house a home. But avoid the temptation to finance your new purchases!

Opening a line of credit, no matter how small, could put a halt to your mortgage approval. New credit affects your debt-to-income ratio and could make your credit score drop, sending red flags to the underwriter. Even if the closing isn’t delayed, your new credit score could redefine your terms.

2. Moving money around

You need to provide proof of assets such as your down payment plus money for closing costs, and maybe even additional cash in the bank. But you also want to show proof that these assets are stable.

For example, transferring money from a business account to a personal account to pay the closing costs could make it appear as if your business or finances are unstable. Don’t give underwriters a reason to doubt your stability and leave your money where it was when you were first approved for a mortgage

3. Closing credit

Getting your finances in order is a great idea, but don’t close any unused credit cards in the process. Just like opening up new credit, closing lines of credit also affects your score, potentially jeopardizing your loan.

4. New charges on credit cards

You guessed it! Using your already open credit could also be a red flag. Making small purchases should be okay, but large purchases and maxing out credit cards are a terrible idea. Remember, any changes to your credit affect your debt-to-income ratio and your credit score, and could delay closing for weeks, months, or even prevent it from closing at all!

5. Changing jobs

Lastly, don’t switch your employment while waiting for the loan to close. Your mortgage is largely based on your current employment situation –meaning both your income and years of employment. While moving into a higher paying job is certainly a good idea, wait until after you’ve moved to make any significant changes.

Remember, you want to show proof of soundness, including employment stability.

Delaying your closing isn’t just about waiting longer to move into your home, it could mean incurring additional costs, or losing the original deal completely. It’s just not worth it.

Still shopping for the right loan at a great rate? Contact Tara Mortgage Services and get the answers you’re looking for!

Network with nearly 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
688 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
162 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

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Tara Mortgage Services featured blog: 3 Numbers That Matter The Most on Home Loan Applications

DHREA 27/06/2019
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(Each week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

There are three numbers that matter the most when it comes to a home loan application. They are your credit score, your debt-to-income ratio, and your loan-to-value ratio. These specific numbers matter because they affect your ability to qualify for a home loan as well as your interest rate for the loan.

This article will give you a quick overview of those numbers and how they affect your mortgage.

Need more specific information? We’re here to help! Use our contact form and a mortgage professional will be in touch soon.

Your Credit Score

You’re likely familiar with this number. A credit score, also sometimes called your FICO score, is a three-digit number between 300-850. This number scores your borrowing history. It’s independently calculated by each of the three main credit bureaus (Experian, Equifax, and TransUnion) using your payment history, your current debt, your credit limit usage, along with other factors.

When you apply for a mortgage, we request your credit score from one or all of the bureaus using a” soft” or “hard” credit check. A “soft” check does not affect your credit score and is done early in the application process, such as during pre-approval. A “hard” check will have a minor impact (lowering by about 5 points) on your score, so it’s done when you’re ready to apply.

Your credit score helps to estimate your ability and the likelihood of you paying back your home loan. The various mortgage programs have a minimum credit score with government loans having the lowest score requirements.

Your score matters because it affects the interest rate you can get. The higher your credit score, the better the interest rates will also be.

Your Loan-to-Value Ratio (LTV)

Your LTV is a way to measure the amount of equity in your home. You can think of it as the percent you still owe towards the principal to fully own your home. The way it works is that the higher your LTV ratio is, the more you’re borrowing.

Here’s how to calculate your LVT yourself: First, subtract the down payment amount from the value of the property. Divide that number by the value of the property. For example, if the home has a value of $200,000 and you put $20,000 down, then your LVT is 90%.

You can also calculate your LTV by subtracting the down payment percent from 100%. For example, if you’re down payment is 20%, then your initial LTV is 80%. Why this number matters There’s often a maximum LTV when you’re buying a home (you can also think of this as the minimum down payment).

The exact LTV max depends on factors such as the property type, loan amount, and whether you’re a first-time homebuyer. If your LTV is higher than the limit, that means that either you’ll have to increase your down payment or look for a lower-priced property. Another thing to keep in mind with regards to your minimum down payment is that if put less than 20% down, you’ll be required to pay mortgage insurance.

Your Debt-to-Income Ratio (DTI)

Your DTI helps determine how much you can afford to pay every month given your current monthly payments. We calculate this number by adding up your existing monthly debt plus what your mortgage payment will be once you have your new home and then dividing that number by your gross monthly income. Why it matters The DTI help to set a limit to make sure that you can comfortably afford your mortgage now and in the future.

This number is critical in qualifying for a home loan. A high DTI is the most common reason mortgage applications are declined. DTI limits vary by lender and our firm is proud to offer more flexible limits than most competitors. Want to talk more numbers? GIve us a call! We can talk you through your numbers and help you determine the best course of action for getting a home loan at a rate you can afford. Schedule a conversation with Tara Mortgage Services today!

Network with nearly 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
688 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
160 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

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Tara Mortgage Services Featured Blog: Mistakes to Avoid as a First-Time Homeowner

DHREA 15/05/2019
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(Each week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

Buying your first home is a thrill. Browsing homes online, daydreaming when driving through neighborhoods, and creating a Pinterest board to save remodeling ideas is great fun. But don’t let the excitement of buying your first home cause you to make silly mistakes.

Here are the most common and avoidable missteps for first-time homebuyers.

1. Falling in love with a home before applying for a home loan

Many first-time buyers start by looking for a home before applying for a mortgage. What happens if you actually find a home you want to buy? Without pre-approval, you have no way to make an offer on your dream home. Instead, start by applying for a home loan. That way you’ll know how much you can afford as well as have a letter of approval showing that you are a qualified buyer. 

2. Going over on your budget

A little bit here and there may not cause too much harm. But going over your homebuying budget can eventually cost you your home if you’re unable to make payments. In other words, just because you were approved for a $300k home loan may not mean that you can afford the monthly payment.

Instead, consider the required monthly payment as well as how much you qualify for. Make sure that you can comfortably make the monthly mortgage payment and avoid the temptation of buying more than you can afford.

3. Rushing to move

Buying a home in 2019 is much faster than it was two years ago thanks to digital convenience, but the actual process of moving still takes time. Rushing to move could cause cost you –and the last thing you want to do is charge up your credit card or tap into your savings to cover a rushed relocation.

Instead, plan well ahead of time to save up for your downpayment, extra for buying appliances and furniture, packing supplies, a moving company or truck rental, and other “surprise” expenses for moving.

4. Being casual with credit use

One of the first things we do when you apply for a home loan is pull your credit. However, many first time homebuyers don’t realize that it’ll get pulled out again just before closing to make sure that nothing has changed. If significant changes are found, then your approval status could also change!

Instead, attempt to keep your credit the same or, if possible, improve it. Try to keep existing balances down to about 30 percent of the credit limit and make your payments on time. You also want to avoid opening new credit cards and keep your credit rotating on the ones you currently have.

5. False believe a 20 percent down payment is necessary

You don’t NEED a 20 percent down payment to buy a home. You can buy a home with 0-3 percent down. The advantage of having a 20 percent down payment is that you can avoid the cost of private mortgage insurance (a requirement if you put less than 20 percent). However, many home loan programs allow for little down, so there is no need to spend years saving for a large downpayment.

Instead, consider an FHA loan. It requires only 3.5 percent down or sometimes even zero down. If you’re a veteran or qualify for a USDA loan, there are even more perks! VA loans are for active-duty and veteran military service members as well as for their spouses. They don’t require a down payment, but a funding fee is sometimes necessary. USDA loans are meant for moderate- to low-income borrowers that want to buy homes in rural areas. There are specific eligibility requirements and some qualify for zero down.

Network with over 650 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
670 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
144 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Read More

Realtor Nation w/ Ian Hoover (Podcast): Special Guest Jason Horr from Tara Mortgage Services

DHREA 28/02/2019

Ian Hoover sits down with Jason Horr of Tara Mortgage Services to discuss the mortgage industry! Don’t miss these two seasoned vets talk a little shop, and find out some new techniques to use. Don’t miss this episode!

Alex Deacon’s March Real Estate Networking Workshop has been announced, and he’s bringing in two huge guest speakers: Josh Caldwell and Matt Beam! The trio will be discussing Creative Financing Concepts, ideas, laws, etc. Don’t miss out on the most highly anticipated workshop of every year! RSVP below!

Creative Financing Concepts

Saturday, Mar 9, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

24 Members Attending

Last month we discussed the concept of Zero Money Down which is super valuable if you want to scale any business especially real Estate Investing. This month we will have two guest speakers and we will go into more detail on the methods, legal issues and paperwork needed to put such deals together. Josh Caldwell will cover the different methods of …

Check out this Meetup →

Join Alex Deacon’s Pittsburgh Landlord Group and be the first to receive updates on our monthly networking meetings!

Pittsburgh Landlord Group

Carnegie, PA
96 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com


Read More

Real Estate Investing w/ Alex Deacon (Podcast): The Power of Pre-approval

DHREA 30/01/2019

In his latest installment of Real Estate Investing w/ Alex Deacon, “The Deacon of Real Estate” discusses the power of pre-approval, and why this practice is a must for both homebuyers and investors. Being upfront with your lender is the key to your homebuying success, and having the knowledge of where you stand with your bank is invaluable. Listen for more details!

Click below to RSVP to Alex Deacon’s FREE February Real Estate Networking Workshop! 

Zero Money Down Concept For An Infinite ROI

Saturday, Feb 9, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

19 Members Attending

Our Guest Speaker will be Chris from M and M RE Holdings. Chris brings a vast knowledge of how the hard money world works, and his company has millions of dollars at their disposal for lending on your upcoming projects! He will discuss their underwriting process and show us how we can position ourselves so, not only does the hard money lender want …

Check out this Meetup →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Read More
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