Tag Archives: Mortgage

Tara Mortgage Services Featured Blog: The Essentials of Getting a Veteran Home Loan

DHREA 11/09/2019
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If you are an active member of the Military, a veteran or a spouse of a member of the armed forces, you may qualify for a unique mortgage program from the Department of Veteran Affairs. VA loans offer some of the most affordable ways to finance a home purchase. 

VA loans are exclusive to members of the Military and their spouses, and there are particular eligibility requirements. Here’s what you need to know about qualifying for a VA loan.

 Secure A Certificate of Eligibility (COE)

A Certificate of Eligibility (COE) is a document that proves you meet the requirement of being an active member of the Military, a veteran, a National Guard, a reserve member, or a surviving spouse. The COE, however, does not mean you qualify for a mortgage. It is just evidence that you are eligible for a VA loan program. 

If you had previously applied for your COE but have since misplaced it, you can easily apply for another. 

Check Credit Report for Errors

Your credit report determines your eligibility for a mortgage and the rate you qualify for. With a prequalifying application, we’ll do a “soft credit check” to give you an idea of where you stand. When you are ready to apply, a “hard pull” will provide you with a definitive view of your financial health. 

Review it for inconsistencies such as strange social security numbers, credit accounts you don’t recognize, late payments that never happened, or incorrect balances. 

If you find errors, dispute them with the credit bureaus. They now offer online dispute services, so correcting them goes by much faster. 

Limitations of a VA Mortgage

VA loans are for purchasing primary residences, not a rental or vacation property. To make sure you indeed plan to make the property your primary residence, you’ll be required to occupy the home within 60 days of closing. This may be waived if the house is undergoing significant renovations or if you are deployed. Note, however, that the spouse of the active military member can fulfill this requirement. 

What Out For These VA Qualifying Mistakes

After submitting your COE, qualifying for a VA loan is straightforward. However, two actions could make your deal fall through. 

Avoid Changing Employment

If you’re a veteran, hold a civilian job while an active member of the armed forces, or are a surviving spouse, do not to make any changes to your employment. The length of work, amount of hours, and income all factor into the loan qualification decision.  Changing employment while in the loan process could disqualify you!

Avoid Big Purchases

One of the factors used to determine your eligibility for a VA loan is your debt-to-income ratio which determines the amount of debt you carry compared to your income. So if you finance a big purchase, such as a car, it will increase your debt and change your ratio, disqualifying you from getting a VA loan. 

Want to learn more about the benefits of a VA loan? Contact Tara Mortgage Services! Our dedicated team of mortgage professionals has all the answers to your home loan and refi questions. 

Network with over 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
711 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
194 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: Joint Mortgage vs Joint Ownership…Do You Know The Difference?

DHREA 31/07/2019
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Joint mortgages can give you access to more funding for a home mortgage than applying on your own. However, joint mortgage and joint ownership do not mean the same thing. If you’re researching how to buy a property jointly, you may also see terms like “joint tenancy” or “tenants in common.” Although they sound the same (and may even be used interchangeably), all of these “joint” terms may not refer to a joint mortgage.

Read on for in-depth guidance with purchasing a property jointly and please contact our office for personalized information.

What is a Joint Mortgage?

A joint mortgage is a home loan approved to two or more people.

You’ll typically associate this type of loan with married couples. However, joint mortgages can in involve partnerships such as family, friends, or investors who are willing to share the responsibility of the loan.

A joint mortgage allows borrowers to qualify for a more substantial loan amount than they can individually because of combined the total household income and combined credit scores.

Joint Mortgage Disadvantages

All parties on the mortgage share the responsibility, meaning all are equally liable for repaying the loan. It also means that all share the implications of negative or positive credit activity as a result of loan management.

Additional Things to Consider

Disputes or ending of partnerships can complicate joint mortgages. For example, one may agree to a quitclaim deed, relinquishing ownership of the property; however, it may not affect the mortgage responsibility. So if any person missed a payment, the other(s) would still be responsible for making it, even without any ownership over the property.

Joint Mortgage vs. Joint Ownership

Here is where people often get confused: a joint mortgage shares the responsibility of the loan while joint ownership is determined by the title or deed. Essentially, a person can be a part of a joint mortgage but not own the property.

Conversely, an individual can be on the title of a home (ownership) but not have any of the financial liability or credit impact.

Is one better than the other?

Having a joint mortgage, joint ownership, or a combination depends on financial your goals. They each have disadvantages and significant financial opportunity, too. The important thing is that you have all your questions answered before you commit. Contact Tara Mortgage Services today for an obligation-free consultation!

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!

Analyze a Buy and Hold Property. Its not all about the numbers.

Saturday, Aug 10, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

14 Members Attending

This workshop is one of the most important sessions if you want to learn how to analyze deals for buy and hold. Its not all about the ROI. There are many other factors to consider when you have a long term strategy. We will go into detail and look at various scenarios and different property styles and types. From an A area single family property to…

Check out this Meetup →

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
167 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/

Read More

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/

Read More

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/

Read More

Tara Mortgage Services featured blog: Here’s Why Your Home Equity is Your Most Valuable Asset

DHREA 19/06/2019
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(Each week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

A simple way to understand what home equity is is to think of it as the portion of your home that you truly own, that is, the value of your home not included in your current home loan. Home equity is what makes homeownership such a great investment. The opportunity to increase equity can be quite significant, making it one of your most valuable assets.

Find out how to build it up and how to use it to its full potential. **Want to skip ahead and start using your equity ASAP? Fill out our online application to get started.

Building Equity

Repaying your loan: Increasing your equity is as simple as making your monthly mortgage payments. How much increase you can expect depends on several factors, including how much of your payment goes towards the principal and interest. The great news is your rate of building equity increases with every passing year of mortgage payments.

You’ll want to note that not all home loans work this way. For example, if you have an interest-only home loan, you may have to make extra payments to increase your home equity.

Increasing home value: Another way to boost your home equity is to do nothing! Some areas appreciate value faster than others. So if you live in an area with increasing property values, you can guess that yours is also going up.

Still, others choose to give the value a boost by making home improvements. If you’re looking to make upgrades for the sole purpose of increasing property value, you may want to investigate which upgrades give you the most bang for your buck, and what upgrades are in demand in your area.

Using Home Equity

Since home equity is an asset, it’s part of your net worth — that means that you can withdraw from your equity should you choose to or you can save it as an inheritance for your children.

Here are some ideas for using your home equity should you decide to withdraw:

  • Use the equity from the sale of your home to buy your next home
  • Borrow against the equity to use as you please. Anything from business start-ups to home improvements to higher education expenses can be paid with a home equity loan.
  • Fund your retirement with a reverse mortgage. This type of home equity loan doesn’t require a monthly payment and is repaid when you leave your home.

There are so many ways to take advantage of this valuable asset, and we’re sure you’ve already thought of quite a few different ways you could use your equity. Want to learn more? Contact Tara Mortgage Services today for an obligation-free consultation and get the answers you need from a trusted mortgage professional.

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
687 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
157 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
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