Tag Archives: Mortgage

#TaraMTG Tuesdays: Five Quick Ways to Estimate Your Home’s Value!

DHREA 13/11/2018

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

 

Home values change pretty quickly, which makes it tricky to get an accurate home value estimate without a professional. Whether you’re thinking about selling in the future or just curious, there are ways to find out the value of your home in a less official manner.

5 Methods for Calculating Your Home Value Without an Official Appraisal

Ask a Real Estate Agent

A real estate agent familiar with your neighborhood can give you a reasonable estimate of your home’s value. You may even consider getting several estimates from various agents for an even more accurate assessment.

Hire an Independent Appraiser

If you’re selling, buying or refinancing, an appraiser has likely come out to review your home. But did you know that you can hire one independently?

As an independent, they can calculate a fair value without any outside pressures. Although not typical, banks sometimes put pressure causing appraisers to have an overly critical eye. With this unbiased outside opinion, you can feel more confident about how much they say your house is worth.

Compare Recent Home Sales

One of the ways that appraisers determine the value of a home is to review sales of similar properties sold recently. These are called “comparables.” We recommend comparing the prices of properties that have sold within the past six months and within one mile of your home.

Use the Internet

The internet is a great place to see what homes are selling for in your neighborhood or what they have recently sold for. Some real estate sites even have online tools for assessing your property’s value by just inputting your address.

Cruise Your Neighborhood for Open Houses

Take a Sunday afternoon to check out your local open houses and see what they are going for. You can also ask the real estate agent questions about what other homes have sold for in the neighborhood or their opinion of the demand for housing in that area. They can also give you insight into the recent upgrades that the current homeowner did to help raise the value of the home.

If nothing else, you’ll get ideas for ways you can upgrade your home either for reselling or just for personal satisfaction.

Combine several of these methods, and you’ll get a pretty good idea of what others are willing to pay for your home. Thinking about selling? Besides knowing how much you can get for your home, it’s also important to know how much you can afford for your next one.

Contact Tara Mortgage Services today for a no-obligation home loan pre-qualification!

 

 

Join nearly 600 other real estate professionals in Alex Deacon’s Real Estate Networking Workshop group on MeetUp.com! Click the box below!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
585 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

 

Read More

Homeowners…Should You Relocate For A New Job?

DHREA 06/11/2018

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

 

When you’re a renter, relocating for a new job isn’t too difficult. You give your current job your two-week notice, your landlord a 30-day notice, put down your deposit on your new place and within a month you have a whole new life.

But things aren’t as easy when you’re a homeowner. Indeed, one of the biggest perks of owning a home is that you can set down roots, so it makes it more difficult to move to a different location and settle down again.

As exciting and welcoming as the new career may seem, as a homeowner, you might start to wonder whether it’s the right choice or whether it’s worth it.

Our office often hears from others in situations just like this –weighing their options for selling their home and relocating for a new job. Here are some things to think about before you decide for or against relocating for work.

Is Relocating for the Job a Good Idea in the First Place?

New city, new career, new home. It all sounds pretty fantastic but remember that there more to life than just work.

  • How would relocating effect your spouse or partner?
  • What changes can you expect for schooling for your children? What about daycare?
  • Does living in a new place move you further away or closer to loved ones –how does that make you feel?
  • If you’re unable to find a home right away, will your new employer provide temporary housing?
  • Will they help with the cost of relocating?
  • How does the move affect your cost of living? Does it fit in your budget?

The decision to relocate your life shouldn’t be made hastily. Try to separate yourself from the romanticism of it and consider all the ramifications that this change would have on your life, as well as the lives of your family.

Should You Sell Your Home if You Relocate?

If relocating makes sense and you’ve decided to take a new position, it’s time to decide what to do about your existing home.

One option is to buy a second home and keep your first home as an investment property. There are specific location requirements when it comes to having two mortgages, one for your primary residence and the other for your investment property. However, since you are relocating, meeting location requirements will unlikely be an issue and applying for a loan for your new home begins the same as the first time around.

What may end up being a problem is the actual management of the property. Managing a rental property in a different location can be difficult. While it comes at a cost, you may want to use a property management company to take care of it for you.

The other option and the one we most often recommend is to sell your first home. Read on to see how to get started.

Tips for Buying A Home and Relocating Quickly

Buying a home comes with a sense of urgency, but when combined with a work relocation, the anticipation doubles. Here’s how you can prepare and make a move quickly and easily.

  • Get pre-qualified as soon as possible.
  • Look for a mortgage professional with a history of closing on-time. You’re on a tight timeline so closing on time should be your lender’s priority too.
  • Respond quickly to requests for documentation such as tax returns, bank statements, and W2′s.Take advantage of electronic submission whenever possible.
  • Travel light. Go through your household and personal items with a critical eye and donate as much as you can to charity.
  • Make a spreadsheet of who to notify about the move such as your bank, credit card companies, utilities. This will help to minimize disruption to service.

Are you relocating or do you know someone who’s relocating?

Contact Tara Mortgage Services today to get your pre-approval started!

 

 

Don’t miss Alex Deacon’s final Real Estate Workshop of 2018!!! We’ve opened up the room for extra seating due to our growing attendance. Click below to connect with Alex on MeetUp.com, network with nearly 600 other Real Estate Professionals, and RSVP to the November workshop!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
580 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 …

Next Meetup

Virtual Bus Tour of Current and past rehabs

Saturday, Nov 10, 2018, 10:00 AM
34 Attending

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

Avoid These Mistakes That Delay Closing Your Home Loan

DHREA 30/10/2018

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

 

Our goal is to get your home loan to close as quickly as possible –we know that when it comes to making an offer on your dream home, time is crucial. Did you know that you also play an essential role in making your loan close fast?

Here are the most common causes that delay home loan approval and closing:

#1: Missing Financial Details

We don’t need to know your entire financial history, but we will need to see every detail from the past two years. Don’t worry; we’ll let you know precisely what you need to provide, making sure that everything moves as quickly as possible.

#2: Leaving Out Documentation

The documentation needed for your loan may vary (and we’ll let you know what your loan calls for) but keep in mind that we’ll need the following:

  • Tax returns and W-2s from the past two years (or year-to-date financial statements for the self-employed)
  • Last month’s pay stubs
  • Two months of bank account statements
  • Copy of any transactions that exceed $1,000 Home insurance quote
  • Financial details of any other homes, businesses, or vehicles that you own
  • If anything significant pops up when we check your credit, we’ll need documentation for this as well.

#3: Mistaking Pre-Qualified For Approval

Pre-qualified requires minimal information from you. It’s a great way to get an idea of how much you can afford to buy, but it doesn’t mean that your loan is approved. Applying for a loan, getting approved for the loan, getting the underwriting approved are the additional steps that need to happen before your loan is approved and can take the step toward closing. Don’t let this discourage you! We take care of all the heavy lifting and make sure that it moves along quickly. All we need from you is to get the ball rolling by applying for a mortgage.

#4: Not Sharing Details Of The Offer With Us

When you buy a home, the purchase contract will layout certain financial milestones that we need to know about, such as by when your loan approval should be secured and how many days you have to close. If we miss any of these dates, not only will it delay your loan but it could cause you to lose the home!

#5 Making Big Changes to Your Finances or Career

Changing jobs, opening a new line of credit, making big purchases, or loaning your friend 3k to start up their business changes your financial portfolio. This means that adjustments must be made and you may not qualify for as much as you originally were quoted. The application process, essentially, needs to start over –delaying your home loan and delaying closing even more.

There are many more factors that could delay your home loan, things that are out of your control. Rest assured that we will be with you, ready for any surprises, minimizing any unnecessary delays.

Contact Tara Mortgage Services today to partner with a home loan specialist that has your best interest in mind!

 

 

ALEX DEACON’s NOVEMBER REAL ESTATE WORKSHOP HAS BEEN ANNOUNCED! CLICK BELOW FOR DETAILS, TO RSVP, AND TO CONNECT WITH NEARLY 600 REAL ESTATE PROFESSIONALS!

Virtual Bus Tour of Current and past rehabs

Saturday, Nov 10, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

20 Members Attending

We have done a few actual bus tours in the past but with the strong turnout I dont like to have to turn down folks due to the high volume of requests. Our next workshop in November we will do a virtual tour of some current and past projects and show you where to spend your money wisely and where you can and cant cut corners in order to stay profita…

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

#TaraMTG Tuesdays: Unpacking and Understanding The Mortgage Payment

DHREA 23/10/2018

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

 

As a first-time homebuyer, you likely have questions about your mortgage payments and how it’s calculated. How much can you expect to pay? How are taxes paid? What’s the purpose of mortgage insurance?

This post will unpack your mortgage payment so you know what you’re paying for each month.

How the payments are broken down depending on the type of loan, but generally, you can expect your mortgage payment to include 4 items. These items are lumped into a single monthly payment and can be remembered with the acronym P-I-T-I.

P is for Principal

The principle is the total amount that you borrow to buy the home. For example, if your loan is for $240k, your principal is also $240k. The amount you pay toward the principal doesn’t usually change, unless you refinance, and depends on the amount of your initial down payment and the total life of the loan.

I is for Interest

Interest is the fee you pay for borrowing the funds to buy the home. Also known as the mortgage rate, it varies depending on market conditions at the time you locked in your home loan. Your rate is also determined by your credit history, among other factors.

There are two mortgage rate options for homebuyers – a fixed-rate mortgage and an adjustable-rate mortgage. With a fixed rate, your interest rate will remain the same for the life of the loan, even if market rates go up over the years.

With an adjustable rate, your interest rate is fixed for a set amount of time (usually five years), then changes to whatever the current market rate. With an adjustable rate, your mortgage payment may increase or decrease at each adjustment interim.

T is for Taxes

Taxes are based on the value of your property. Your property is assessed every year to determine how much you will pay in property taxes. You can choose to include the property tax in your mortgage payment, dividing your annual bill into 12 payments. It’ll be held in escrow until taxes are due, after which they are paid on your behalf.

I is for Insurance

Insurance protects the loan in the event of a disaster or an accident. Similar to property taxes, your insurance payments can be collected, held in escrow, and paid to the insurance company directly every year. Usually, your insurance payment won’t change over the years, unless you add additional coverage.

Knowledge is power, and we believe that every homebuyer should know where their monthly mortgage payment goes. Whether you’re ready to buy or you’re looking to refinance into a lower rate, a helpful home loan specialist is available to you through the phone, on the web, or in person.

Contact Tara Mortgage Services today to learn more!

 

 

If you haven’t joined Alex Deacon’s Real Estate Networking Workshop Group yet…what are you waiting for?!

Connect with nearly 600 Real Estate professionals today!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
573 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

 

Read More

#TaraMTG Tuesday: What To Expect The Day Your Home Loan Closes

DHREA 09/10/2018

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

“What happens on closing day and after?” That’s a question we get asked often.

On closing day, you’ll sign documents to finalize the transaction and release the funds from your home loan. You’ll also receive digital or paper copies of all the signed documents plus the keys to your new home.

It seems pretty cut and dry, and for the most part, it is! Most of the loan processing work will be complete by this point.

In the whirl of excitement that you’re moments away from becoming a homeowner, you might get confused on what’s actually going on on closing day.

Here’s a quick break down of what you can expect on the day your loan closes.

What To Expect The Day Your Home Loan Closes

There are several “parties” involved in making your loan possible, and they all play a part in your closing, too. Some of these parties include your loan officer or broker, your realtor, lawyer, underwriter, title company, seller, the seller’s realtor, and you.

Each party makes sure that all is correct and complete with your loan. The final “package” can be quite extensive which is why you’ll receive it several days before the actual closing date, giving you the time to look it over.

There are several documents that need signing. They may vary somewhat, however, for the most part, these are the documents you’ll be signing on closing day:

  • Closing Disclosure: This contains your final loan terms and details about your closing costs.

  • Mortgage Note: This is essentially a “promise” to repay the loan.

  • Mortgage or Deed of Trust: Lays out the details of what happens should you fail to repay the loan.

  • The Deed: This legally transfers ownership of the property to you.


Closing day is also when you’ll pay the closing costs and your down-payment. Remember that both of these payments should be done with a certified check, not cash or personal check. Be sure to also bring a copy of your proof of insurance (don’t worry, we’ll remind you of all of this on closing day) and that’s it!

If your possession date is the same as your closing date, you’ll receive your keys then. If your possession date is different, you’ll know about it ahead of time. It’s noted on your purchase agreement and we’ll make sure you’re clear on all the closing date details before you sign.


Post-Closing 

These are other things that’ll happen after closing. They’re not directly related to your loan but just a few things to keep in mind.

Offers in the Mail. Home sales are public record so be prepared to receive lots of mailed offers for home services, legal services, and maybe even mortgage protection insurance.

You may find some of these offers useful but research before committing. There are scammers that will send you an offer appearing as if it came from a reputable lender or other mortgage service provider.


Possible Payment Changes

Terms of your loan won’t change, that is, unless you have an adjustable-rate loan or if you refinance. However,  it may be possible for your payments to vary slightly due to changes in your escrow account.

For example, if the property taxes or insurance increases, your mortgage payments will also increase. Don’t worry about ever “overpaying.” If there are any overages in your escrow account, you’ll get a refund.


The home loan process has many moving parts right up to the very end, but we’re here to make it all clear and keep everything on track for you. You can count on Tara Mortgage Services to be your trusted resource for all your home and property financing needs.

SEATING ADDED! Alex Deacon’s RE workshop this Saturday is so popular, we’ve added extra seating to accommodate the demand! Alex is bringing in Josh Caldwell as his special guest speaker for added punch! RSVP below while seating is still available!

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

62 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 th…

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

#TaraMTG Tuesdays: Little Known Factors That Affect How Much Property You Can Afford

DHREA 02/10/2018

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

 

Getting pre-approved for a home loan is an essential first step to knowing how much home you can buy. But did you know that the property itself also effects on how much you can afford? Here are some of the factors that determine how much you can afford to buy with your home loan.

Ways that the Type of Property Effects How Much Home You Can Afford:

How You Plan on Using the Property

Will this be your primary residence, a second home, or an investment property? Home loan options are partially affected by how you plan on using your new home. When it comes to underwriting a home loan, usage refers to occupancy, not how many properties you currently own or have owned in the past.

For example, if you want your new property to be considered a primary residence, you’ll have to show that you intend to live in the home for the most of the year (in addition to other requirements). Primary residences often qualify for the lowest minimum down payment, sometimes as low as low as 3%, depending on the loan.

If instead, you intend to live in the home for part of the year and it’s 50+ miles away from your primary residence, then it’s considered a second home. The great thing is that second homes often have similar interest rates to that of primary residences, however, you’ll need a larger down payment.

If you plan on renting out the new property, then it’s considered an investment. Investment properties are lucrative, given the right property and management, however, keep in mind that these types of properties have higher interest rates and down payment requirements than the first two options.

The Type of Property

What you end up paying for a single-family home versus a condo can vary, even when the listing prices are the same. Some home loans bump up the rate slightly with condos and townhomes. Plus, HOA fees must also be factored into your mortgage, which affects how much you approved to purchase.

Trickier still are mobile homes and non-warrantable condos. But don’t let this discourage you! There are many nuances to matching the loan to the property and purpose, but that’s what we’re here for –to take care of the details and lay it all out plainly for you.

The Property Tax Rate

Property taxes vary from area to area and may add significantly to your monthly payment. You have the option to exclude it from your mortgage payment and pay the taxes yourself every year, however, doing it in this manner does not affect how much you’ll pay. It will still be the same amount. Keep this in mind when considering how much you’re comfortable paying every month.

Local Mortgage Programs

Depending on the home’s location and your financial profile, you might qualify special loan programs that offer discounts. These discounts vary in availability and may even be determined block-by-block. So if you previously shopped around for homes and thought you couldn’t afford a particular neighborhood, it’s time to look again!

Need help figuring out if you can afford a specific home or if you qualify for a special home loan program? Call Tara Mortgage Services today! We’re the local mortgage professionals and know what it takes to get you approved for the right home loan.

 

 

RSVP to Alex Deacon’s October Real Estate Investing workshop! Seating is going fast!

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

27 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

 

Read More

#TaraMTG Tuesday: The Trick to Winning a Home Bidding War

DHREA 18/09/2018

 

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

 

There’s more than one way to win a bidding war. If you find yourself competing with multiple offers on the same house, know that there are others ways to sway favor in your direction other than offering more money.

The trick is to make your offer stand-out and to encourage the seller to make an emotional connection with it. You can think of it as a way to “sell your offer” to the home seller, and, in our experience, an offer letter is a perfect way to do it.

An offer letter is pretty simple, just like any other letter or email you write, and it accompanies your bid on the home.

Here’s a quick overview of key points to include in your offer letter:

1. Talk about what you love about the house

The seller likely spent years in the home and possibly raised a family in it, so they will probably have a strong emotional attachment to the property. Highlight the memories you hope to create in the home and acknowledge the hard work put into it. You can also mention any specific upgrades they’ve recently included and how much you admire the improvements.

2. Make it (just a little) personal

It’s helpful to reveal a little about yourself to the seller –but not too much. You can provide a short explanation of why you chose this particular house over other homes such as because it reminds you of your childhood home or you grew up in that community and want the same for your children. Whatever the reason, share it with the seller and let him know you’re the right buyer for the home.

3. Don’t mention any plans to remodel the house

While the sellers may realize that certain upgrades are necessary, most of the time, they don’t want to hear about it. The seller may have invested thousands of dollars to fix up the property, so they certainly don’t want to hear about plans to undo their work. Keep renovation plans to yourself.

4. Discuss your ability to afford the house

Include a pre-qualification letter with your offer and offer letter, so the seller knows you can afford the property. If the buyer is looking to make a quick and no-fuss sale, your pre-qualification letter may be just the thing to convince them to choose your offer.

5. Do you have anything in common with the seller?

You might also want to mention anything you have in common with the seller. Look for clues as you walk through the house and take mental note of any commonalities you have with the seller. Sometimes, it’s the little things (like both having a German Shepherd) that make a big difference.

6. Promise to take care of the home

A seller who invested to much time and effort into the home will prefer a buyer who will take care of the legacy. Include a promise to maintain and keep the house in excellent condition—whether you follow through on not making any changes is up to you. It may seem like a trivial thing to include in your letter, but it can have a tremendous impact on sentimental sellers.

7. Keep it short

Your letter should be both compelling and thorough but keep it brief. You want your letter to stand out, but you certainly don’t want to seem pushy nor do you want to overwhelm the seller with several pages of pleading. Keep your letter short, sweet and, optimally, a page or less in length.

Money isn’t the only way to compete in a competitive housing market. An offer letter and pre-qualifying letter can sometimes be more convincing than adding a few thousand to your bid.

Ready to get a pre-qualifying letter? Or maybe you’re just curious as to how much home you can afford? Contact Tara Mortgage Services with your questions today!

 

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

#TaraMTG Tuesday: What comes first, the sale or the purchase?

DHREA 11/09/2018

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

 

You may be wondering if there is a right order to buying and selling a home when you’re already a homeowner. For example, would it be better to sell first and then shop for a new home?

Or maybe it’s best to buy first then sell your current home?

This blog will help you to understand the advantages of each scenario as well as a creative alternative.

A lot has changed since the last time you applied for a home loan. Your income, your FICO score, and even how you apply for a home loan is different!

What To Consider When You Buy First:

One of the main perks of buying first is that you can take your time to shop around, similar to the way it was when you first bought your home. You can visit as many open houses as it takes to find just the right one without any pressure to rush your decision.

You can also take your time to plan the move, make any repairs or upgrades, and even move your stuff little by little instead of packing it all in one moving day. Changing your address, turning on utilities, and making changes to childcare and school can also be coordinated with ease when you buy first.

On the other hand, there may some overlap in mortgage payments if you don’t sell your current home within a month of buying your new home. If the possibility of carrying both mortgages sounds like too much of a burden then buying before selling may not be for you.

You’ll also want to consider that your income and debts affect how much you qualify for. In other words, it will be difficult to get approved for a new home loan if your income can’t support two mortgages.

What To Consider When You Sell First:

Selling your home first means that you’ll have your equity free and on hand, ready to make an offer on the next house. In a competitive market, having cash on hand is a significant advantage.

You’ll also save money by not having to pay two mortgages and utilities at the same time. It can even seem pretty wasteful to pay double when in reality you are living only one home.

While avoiding paying double would be ideal, you should know that there may be some overlap. For example, you will likely have temporary housing in an apartment while you shop for your new home. In this case, you’ll probably pay a month or so of rent plus your mortgage.

But this is still a better scenario than paying for two mortgages for an indefinite amount of time. Remember that when you buy first, you are at the mercy of other homebuyers. If instead, you’re renting, the worst that can happen is that you pay a fine for breaking the lease early.

Plus there’s also the feeling of being rushed to find a home. When you sell first and are renting an apartment, there’s a sense of urgency to buy quickly and stop “throwing money away” towards rent. 

The Homebuying-and-Selling Alternative

We’ve given you the pros and cons of both selling-first and buying-first scenarios.

Now we want to share an alternative to both: make an offer that is dependent on selling your current home.

This is called a “contingent offer.”

The main benefit is that it bridges your current home to your future home so that you avoid double mortgage payments and the need to rent an apartment.

You may be wondering what to use as a down payment if it’s tied up in the equity of your current home. A possible solution is to take a home equity line of credit (HELOC), and use it to cover the down payment while still paying the mortgage on your current home.

Whether you buy or sell first, it requires quite a bit of coordination, especially when it comes to qualifying for a new home loan. Find out the expert advice you need and learn more about your options by contacting Tara Mortgage Services today!

 

 

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
510 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

 

Read More

#TaraMTG Tuesday: The Difference Between Mortgage Brokers and Real Estate Agents

DHREA 04/09/2018

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

 

Two professionals will quickly become your best friends when you’re buying a home: your mortgage broker and real estate agent. How do they differ and how do they work together to help you with your home purchase?

How Do Mortgage Brokers and Real Estate Agents Differ?

Real estate agents work on the buying and selling part of a property while mortgage brokers focus on the financing side of the purchase. Here’s how that breaks down.

A real estate agent helps you to sift through potential homes to find the perfect one. They have access to property listings, have knowledge about the local market, and have information about the neighborhoods, including which areas are up-and-coming and reputations of local schools.

A real estate agent may introduce various home loan options, however, knowing which mortgage program works best for you is a mortgage broker specialty.

**Working with a loan officer instead of a mortgage broker? They work essentially the same way, that it, helping you to get the rate and home financing you need. The difference is that loan officers work with a specific lender while a mortgage broker works similar to an “independent contractor,” working with several lenders.

Both have their perks and both guide you in comparing home loan programs to ensure that you’re getting the best rate.

Common Responsibilities of Real Estate Agents

Real estate agents help you sell a property or help you to buy one.

Types of Real Estate Agents

Here’s a quick overview of the most commonly encountered real estate agents.

Real estate agent: This is a state-licensed position, and they help their clients through the selling or buying of properties. Each state has its licensing guidelines. However, the training and standards are somewhat similar throughout the country.

Real estate broker: This professional is usually the owner or manager of a real estate office, though some work independently. They have the same training as a real estate agent plus additional higher-level training as they are the ones reviewing contracts as well as managing the daily operations. Just like real estate agents, licensing for real estate brokers vary by state.

Realtor®: A Realtor® is the official name for a real estate agent or real estate broker who is also a member of the National Association of Realtors® (NAR). The NAR is a private organization with their own set of realty standards and code of ethics that members agree to follow. To recap, all Realtors® state-licensed, but not all real estate agents and brokers are Realtors®.

Responsibilities of Mortgage Brokers

A mortgage broker is worth his or her weight in gold. They provide a critical service when it comes to navigating your home loan options, so their profession is heavily regulated. Every state has their licensing requirements, but all mortgage brokers are trained, bonded, and act with your fiduciary interests in mind.

Mortgage brokers and loan officers help you in other ways too! Consider them a trustworthy source for your credit score questions, property investments loans info, down payment coaching, and much more.

Mortgage Brokers Be Real Estate Agents Too 

It’s possible for your mortgage broker also to be a licensed real estate agent. Some prefer this all-in-one service, while others like to keep their mortgage and home shopping separate. However, note that real estate agents cannot originate government-backed loans (like FHA loans, for example) on behalf of their client.

Working Together for Your Best Home Buying Interests

Buying a home is critical life decisions and investments you will ever make. That’s why we’re dedicated to guiding you through the initial process home loan applications and keep you in the loop every step of the way. Whether you are already working with a real estate agent or are looking for a trusted recommendation, Tara Mortgage Services are ready to team up with you to make your homeownership dreams come true! Contact us today!

 

Connect with over 500 Real Estate Professionals! Join Alex Deacon’s Workshop on MeetUp.com. Big event coming this Saturday!

Zero Money Down is not Impossible

Saturday, Sep 8, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

33 Members Attending

I know it sounds too easy to be true and I often preach that if it sounds too good to be true then it probably is. In this case I am confident saying that this can be done regardless if you have been in the business as long as I or if you are new to the business of Real Estate Investing. I am going to show you the step by step process to start your…

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

#TaraMTG Tuesdays: Homebuying Tips For Unmarried Couples

DHREA 21/08/2018

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

 

Buying a home with a loved one is an exciting next step. However, home purchases between unmarried couples come with a few challenges. And since buying a home presents a significant financial investment and personal commitment, it’s important to know the challenges you may face before you sign on the dotted line.

Here are five things to plan for when buying a home as an unmarried couple.

Have an Honest Talk About Finances:

Even if you have already rented an apartment together and think you’re fairly familiar with your partner’s finances, it’s important to have a formal discussion about it. Make sure you talk about financial history, debt from credit cards, personal loans, school loans, or any other obligations.

 

FICO scores and income are other important details to know. Of course, if there are any financial factors that you kept private, this would be the time to share it. Once you begin the home loan application, all will come to light anyway –might as well be honest about it all now and start your home buying dreams on the right foot.

If it turns out that one of you has poor credit, as a couple, you may decide to work on repairing the credit before applying for a home loan. Likewise, as a couple, you might decide that the partner with good credit will apply on their own.

Decide How the House Payments will be Split:

You may already have a system in place for deciding who pays which bill. However, a mortgage payment may change that. Besides, the mortgage payment, you also need to decide how to split the down-payment and closing costs. There’s also emergency house repairs and ongoing maintenance to consider.

After deciding, you may want to consider writing a plan with a real estate attorney. This will help to keep things in order as well as and help make sure that each partner holds up to their homeownership commitment.

Some couples find it helpful to have a joint bank account dedicated to home-related expenses while keeping their other funds separate.

Know Your Homeownership Options:

Sharing the mortgage of the home does not automatically mean that each partner is on the title as well. Laws vary according to state but generally speaking, you’ll have three options when it comes to the title of the house.

  1. Joint Tenancy – Both partners own the property equally. In the case of death, the other partner inherits the other’s stake and owns the entire property.
  2. Tenancy In Common – Each own a specified percentage of the property. However, if something happens to one, the ownership interest transfer to whoever is specified in a living will or trust. If there is no will or trust, then goes to the next of kin — not the significant other.
  3. Sole Owner – It might make more sense for a single person to be on the title, especially if only one is on the mortgage. However, know that if you ’re paying for the home but aren’t listed on the title, it’s unlikely that you’ll able to deduct the mortgage interest on your taxes.

Consider the Future:

Where do you see yourself in 3-5 years? Think you’ll move for a job opportunity? What about starting a family –do you see yourself having kids soon? These changes can change everything and should be part of your decision-making process when buying a home. Typically, it takes about 5 years to build equity so you’ll want to discuss plans with your partner before deciding on a specific house.

Have a Plan B:

Unfortunately, sometimes things don’t turn out as you hope, and owning a home as a couple when you’re not a couple any longer can present some challenges We recommend drawing up a partnership agreement, similar to a prenup, to detail what happens to the home in the event of a split.

Remember, there are no legal protections between home purchases between unmarried couples. Avoid or at least minimize risk to each of you as a couple by going into the home purchase with a written agreement.

Despite the additional challenges, buying a home as a couple is an excellent investment for both of your futures! With some preparation and honest discussion, you and your partner will be prepared to take this next exciting step.

Whether married or unmarried, the home buying process begins the same way –getting pre-approved! Apply securely and quickly using our online application, and contact our office for more live assistance in buying a home as a couple.

 

Be the 500th Real Estate Professional to join Alex Deacon’s Networking Workshop group on MeetUp.com! Click the box below!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
489 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

 

 

Read More