Tag Archives: Loans

Tara Mortgage Services featured blog: Got Student Debt? Here’s How You Can Buy A Home!

DHREA 05/03/2019
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(Every week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

When compared to past generations, the millennial generation is the most college educated. If you’re part of this group, you may recall being told that a college education is essential to career advancement and wealth.

The final word on whether college was absolutely necessary is a personal matter…only you can answer whether the debt is worth it. But one thing we can all agree on is that student debt is a significant burden. So much so that housing experts say that student debt may be the cause for a drop in homeownership among Millennials.

Can this be true? With stats that show that student loans account for about $1.5 trillion in debt, surpassing even credit card and car loan debt, it certainly appears to be true. And with the cost of tuition rising plus a job market competitiveness that requires education beyond a bachelor’s, we can expect these numbers to increase.

But you don’t need stats to know that this is true. If you’re a Millennial or a Baby Boomer with a Millennial still living at home after college, then you know it. While student debt poses a significant hurdle to homeownership, there are things you can do to make it easier.

Here are our best tips for buying a home with student debt:

Focus on your credit score.

Student debt may not be the only hurdle you have to buy a home. Your credit score could also hurt your chances. Your credit, or FICO score, is what’s used to determine not only if you qualify for a mortgage but also the amount and at what interest rate. If your credit score is too low or you have a credit history that’s plagued with late payments, then you out of the running for a mortgage.

Another thing to consider is that even if you do qualify for a mortgage with poor credit, the monthly payments may be higher than you can afford. That’s why our first tip is to work on building and repairing your credit.

Work on your debt-to-income ratio.

Another factor looked at when applying for a mortgage is your debt-to-income ratio. This number is used to determine whether you can afford to carry the additional debt of a mortgage payment. Essentially, can you pay your mortgage every month?

To raise the ratio, you’ll want to increase your monthly income and lower your debt. You can focus on one or the other, but we recommend doing both. Taking a side gig to earn a few hundred a month and using a portion of that to pay off debt can make a BIG difference pretty quickly.

Research down-payment programs.

Even with student loan debt, there several down payment assistance programs that you may qualify for. Government loans like FHA, USDA, and Veteran home loans have many perks, including down payment assistance. USDA loan even has zero-down mortgages! Contact Tara Mortgage Services to learn more.

Apply for a mortgage.

This tip may seem out of place, but there’s no better way to know how close you are to buying a home than to apply to see where you stand. When you get pre-qualified, we can give you a better picture of your financial standing. We’ll also give you personalized guidance as to what would make the most significant impact on your home loan-worthiness.

Whether student debt, credit debt, bankruptcy, or poor credit, having the answers to your homeownership obstacles puts the power back in your hands. When you know the big picture and a solid plan based on facts, you’ll see how close you actually are to buying a home. Who knows –you may qualify for a low rate RIGHT NOW. Contact Tara Morgage Services today to get mortgage answers and guidance!

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

30 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 …

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

Pittsburgh Landlord Group

Carnegie, PA
99 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…

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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

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#TaraMTG Tuesday: Deciding Between a VA Loan and FHA Loan? Read This First!

DHREA 25/09/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

Government-back home loans offer some of the best rates and perks, especially when it comes to Veteran home loans. But is that the right choice? Should you opt for an FHA home loan instead?

Remember, our office is here to guide you! There’s no rush to decide on your own which home loan you should pick. Instead, read this article to get an idea, start the loan application (available online), and we’ll contact you with personalized mortgage options.

How Do VA Loans and FHA Loans Compare?

Down Payment

If you don’t have enough for a down-payment or would rather not use your savings for a down payment, then you’ll want to look at a VA loan. A VA home loan is one of the few loans that doesn’t require a down payment.

Though, FHA loans fair pretty well too. It only requires 3.5% down payment, and any money that you can put down now will save you in the interest you pay over the life of the loan. Plus, putting money down jumps starts your equity.

Insurance

VA loans don’t require insurance, regardless of whether you put money down or not. This can save you quite a bit in both in the short and long run.

With an FHA loan, down payments of less than 20 percent require a mortgage insurance premium, commonly called MIP. You’ll pay this either at the closing of the loan or in monthly payments.

Here’s another thing to know about FHA loans and insurance: the MIP will last the life of the FHA loan unless you refinance. It won’t automatically cancel after you’ve built enough equity. Having to refinance is not a bad thing –actually, it can work in your favor to get a new loan based on current rates and your improved credit score.

Mortgage Rates

Mortgage rates are always changing, so we can’t say for absolute certainty that one loan will have a lower rate than the other.

However, based on what we’ve seen in the past, VA loans typically have lower mortgage rates than FHA loans.

Credit Scores

VA loans don’t have a minimum credit score. However, it’s still necessary to run your credit when applying for a VA mortgage. Also, while there isn’t a set minimum credit to be eligible for a VA loan, a very low credit score could affect your approval.

The minimal credit score for an FHA loan is lower than traditional loans. And, generally speaking, FHA loans are more flexible with credit score requirements.

Which loan should you choose?

It certainly looks like a VA loan comes out on top in this simple comparison, but every financial situation is different. The best way to know is to contact Tara Mortgage Services today so that we can present you with more accurate, personalized scenarios based on your credit and current rates.

 

ALEX DEACON’S OCTOBER WORKSHOP ANNOUNCED!

Click below to secure your spot for the most requested topic of the year!

How to find and analyze my next RE Investment

Saturday, Oct 13, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

9 Members Attending

This is our most widely asked for workshop. We do this a few times a year and it will contain the steps you can take right now with very little experience. You can implement these steps and start using them in your day to day investment journey. We will discuss and hit on a few very important ideas on how to do the following 1. Where to look for …

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

 

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#TaraMTG Tuesdays: The Secret to Renovating with a VA Loan

DHREA 14/08/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

Did you know that there’s a VA loan specifically for home renovations? It’s true! With a VA Renovation Loan, you can use up to $35,000 to pay for home improvements. Also called a VA Rehab Loan, this an additional loan you would get at the time of purchase.

Wondering where that $35,000 amount comes from? The 35k is just about 25% of the total entitlement that veterans receive with a VA loan.

How does a VA Renovation Loan work?

A VA Renovation Loan is a second loan and is technically separate from your home loan. However, both loans will be lumped together so that you’ll have only one mortgage rate and one monthly mortgage payment.

How To Use a VA Renovation Loan

The goal of a VA Renovation Loan is to bring the home up to VA Home Loan standards. So while it won’t allow for a whole kitchen makeover, you can still do some major improvements.

You can use it to repair or replace the flooring. You can fix electrical systems, improve the plumbing, and even make some energy efficiency upgrades! However, if you’re looking to do a complete kitchen remodel, with new cabinets and maybe adding a center island with a granite countertop, you’ll need a different VA loan product for that.

Remodeling with a VA Cash-Out Refinance

With a VA Cash-Out Refinance, you can cash-out on your total equity. For example, if you have $33,000 in equity in your home, you can take out the entire $33,000. You could also choose to take out just a portion, say $20,000, to fund your kitchen remodel.

What’s more, if you plan it right, you could increase the value of your home with the remodel!

A VA Cash-Out isn’t limited to just home improvements either. You can use it for anything from buying a new car to taking a family vacation. Here’s another perk: you may be able to reduce your mortgage rate too!

Imagine being able to take out cash to remodel a bathroom, while increasing the value of your home, and still pay less per month on your mortgage! Of course, there’s no guarantee that all three of these perks will happen all at once, but with a VA Cash-Out Refinance, it’s not out of the question.

There are many more benefits awarded to current and retired military personnel, and their spouses through VA loans. Lower than average interest rates, zero downpayment options, and no mortgage insurance premiums are but a few. And when you combine it with a VA Renovation or Cash-Out Refinance, the advantages add up even more!

Not a veteran? We got you covered. Contact Tara Mortgage Services to learn more about special loan programs for first-time homebuyers, less-than-perfect-credit homebuyers, and investors too!

 

We’re nearing 500 Real Estate professionals in Alex Deacon’s Networking Workshop group in MeetUp.com! Click below for the latest updates on Alex’s September workshop!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
487 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 →

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

 

 

 

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#TaraMTG Tuesday: Tips for Buying a Home When You’re Self-Employed

DHREA 07/08/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Self-employment has its perks, like making your own schedule, negotiating your pay, and maybe even have a little more free time to do the things you love! If you’re self-employed or a freelancer, you’re not alone — about a third the U.S. workforce is self-employed, and it’s projected to increase to 42% in the next 2 years.

Our office has also seen a rise in self-employed home loan applicants –and we’re excited to see the shift. In many ways, self-employment means freedom, and anything that helps our clients gain freedom in their lives and finances is something we want to be a part of.

With that said, there are a few more hoops that self-employed applicants need to jump through when applying for a home loan. It’s nothing too difficult, just a few more steps to verify income. Find out precisely what it takes to apply for a home loan when you’re self-employed, and see how close you are to even more independence with a low-rate home loan!

Getting Ready to Buy a Home When You’re Self-Employed

Traditionally, when applying for a home loan, applicants supply their W-2’s. As a freelancer or self-employed worker, you’ll need to prove your income and taxes differently. Here’s how to do it Your 1099 If you’re self-employed, you’ll report your taxes with a 1099 form rather than W-2’s. Freelancing can sometimes mean irregular income –meaning you’ll earn a little more one month and a little less the next.

So we have a more accurate picture of your income, we’ll ask for more financial information. Typically, this means providing two years worth of tax returns. If you’ve been self-employed for less than two years or don’t have tax returns for the previous two years, please call us to help you figure out the fastest way to qualifying for a home loan.

Saving for a Downpayment

Whether self-employed or not, the more you can put down for a home the better it is. Not only will your monthly payments likely be lower, but you’ll end up paying less over the life of the loan. But when you’re a freelancer, your savings takes on an additional meaning — it proves financial stability. Financing the self-employed borrower can be considered a little riskier, which is why more financial information is required.

However, with a savings backing you up, your application will look all the more favorable, getting you on the fast track to approval.

Don’t have much to put down? That’s okay! Call Tara Mortgage Services to see how they can help you find a home loan with flexible requirements ,and can help you find ways to come up with a down payment fast.

Review Your Credit

We’ve talked about credit scores many times here on our blog. That’s because your credit is so critical to your home loan rate and which loans you qualify for. And when you’re self-employed, your credit score is all the more vital! We suggest that you review your credit as soon as possible –you can even do that now by asking for a free credit report from the credit bureaus (you’re entitled one free report a year).

You can also let us request your credit report. When you apply for a loan with us, we’ll request your credit report and review it with you. If there are any discrepancies, we can give you tips on how to sort it out and possibly raise your score.

Be Thoughtful with Your Tax Deductions

One of the benefits of independent work is the ability to write-off expenses on your taxes. Expenses such as your Internet, cell phone, travel, lodging, supplies, and the like are all reasonable write-offs. But here’s a word of caution – the more you deduct, the less income is reported on taxes. So, if you’re in the market to buy a home or invest in property soon, reconsider how much you’re deducting from your taxes.

Learn About Your Mortgage Options

There’s a loan for every applicant, especially the self-employed! Besides the favorable rates and stability that a conventional home loan offers, there are other options that may be a good fit: FHA loan – Requires only 3.5% down! USDA loan –Zero down on homes in qualifying rural areas. VA loan – For active duty military, veterans and their families offering zero down.

Self-employment shouldn’t hold you back from reaching homeownership freedom. All it takes is some planning, thoughtful financial choices, and applying with Tara Mortgage Services!

 

Only 16 seats remain! Don’t miss out on Alex Deacon’s August Workshop! RSVP below!

Detailed Game plan from A-Z for your next Buy and Hold

Saturday, Aug 11, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

34 Members Attending

This is a great session for those who want to buy and hold. This will give you an idea of realistic expectations that you can count on for your current and your future investments. We will look at some of my current and past buy and hold properties and take a close look to see what mistakes and successes I had made and lets learn from those and com…

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

 

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#TaraMTG Tuesday: 7 Ways Mortgage Professionals Can Help You!

DHREA 31/07/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

When you think of the kind of help a mortgage professional offers most likely you think home loan services. But did you know that we can do more?

It’s true! Our office does more than match you with the right loan at a competitive rate. We help you navigate every aspect of homeownership success.

Have questions? Give us a call or contact us through our online form located at the top and bottom of our website.

Trustworthy Credit Advice

Credit scores are a critical part of the mortgage process, so our expertise in credit scores comes with the territory. Because your credit score is essential to the mortgage rate, you want to make sure you have the facts about your credit score and how you can improve it.

So when you’re looking for honest answers about your FICO score, remember Tara Mortgage Services can help!

Explain the Homebuying Process

Curious about what it takes to buy a home but not quite ready to move toward applying for a loan?

Maybe you’re wondering:

  • Which loan option is best
  • About hiring a real estate agent
  • What fees to expect
  • How much home you can afford to buy

Offer Down Payment Tips

Many think that you need a 20% down payment for a home, but that’s not true! There are many loan options where you need as little as 3.5% down!

Need help coming up with down payment that won’t drain your savings? We’ll coach you on creative ways to come up with it. From monetary gifts to home buying assistance programs, we know all the tricks to buy a home with limited funds to start.

Do a Financial Checkup

Similar to your annual health checkup, your finances need a checkup too! We’ll take a look at your assets, income, and other financial obligations so that you can have a better understanding of your financial situation.

Just as a doctor gives you tips on how to improve your health, we’ll make some recommendations, like refinancing to a better term, to improve your financial health.

Explore Investment Property Options

Considering buying an investment property? We’ll clarify your loan options, and offer advice, so you decide if it’s a smart financial move.

Avoid Foreclosure

Foreclosure doesn’t have to happen to you. We can help you explore different options before it gets to the point where you can no longer afford your mortgage payments. If you think you might be at risk for missing mortgage payments, please contact us right away.

Look Out for Your Home Buying Interests

As mortgage professionals, we’re passionate about being a valuable home loan consultant in every way. From helping you decide whether you should refinance out of an FHA loan, or how to recognize housing scams, our duty is to serve you.

Mortgage Professionals at Your Service

Whether you’re a first time home buyer, an existing homeowner, a budding property investor with questions, or just looking for a financial checkup, we’re here to offer honest guidance and advice. Contact Tara Mortgage Services today for personalized assistance from an experienced mortgage professional.

Alex Deacon’s August MeetUp has been announced! These events fill up fast, so guarantee your spot today!

Detailed Game plan from A-Z for your next Buy and Hold

Saturday, Aug 11, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

9 Members Attending

This is a great session for those who want to buy and hold. This will give you an idea of realistic expectations that you can count on for your current and your future investments. We will look at some of my current and past buy and hold properties and take a close look to see what mistakes and successes I had made and lets learn from those and com…

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

 

 

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