Tag Archives: Myths

Tara Mortgage Services featured blog: Mortgage Mythbusters: First-Time Homebuyer Edition

DHREA 25/09/2019
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Entering the housing market as a newbie can be intimidating. Even more so when you hear rumors about how “difficult” or “expensive,” it is. But don’t believe it! As the experts in first-time home loans, we have all the answers and resources to make your home purchase happen with ease.

Find out the truth about buying your first home, and for personalized answers, contact us! 

Myth #1:

You need 20% downpayment.

While a 20% down payment means you won’t pay private mortgage insurance (PMI), you can buy a home with much less down. In fact, there are loan programs that require as little as 3% down. Are you a veteran, currently enlisted, or a spouse of a member of armed forces? Then you may qualify for zero down! 

20% down has its perks, such as no PMI and building equity a lot sooner. But that doesn’t mean you MUST have 20% now to buy a home. When it comes to how much you can afford to pay every month, an FHA loan with 3% may be the most affordable option.

Myth #2:

You won’t qualify for a home loan if you have student loans.

Got student debt! So do most borrowers! Student debt and credit card debt are different “in the eyes of lenders.” So even if you have substantial student debt, buying your first home is still very much possible. 

Myth #3:

Avoid adjustable-rate mortgages like the plague.

The 2008 housing crisis is still fresh on many buyer’s minds, and this may make you wary of adjustable-rate mortgages (ARMs). But you shouldn’t be! The bust was more of an issue of too-lax qualifying standards and less about the loan program itself. 

ARM loans are an attractive option because of the low fixed interest rate it offers for the first few years. An ARM is a great option if you plan on refinancing or selling within 10 years. In fact, it could potentially save you thousands.

Myth #4:

You won’t qualify for any government home loan program. 

Government-sponsored loans from Fannie Mae and Freddie Mac offer numerous affordable lending options. Eligibility is much easier than other loan programs and could be based on the location of the home, your income, your military status, and even your first-time homebuyer status! 

Curious as to which government loan you qualify for? Contact us today to get started!

Myth #5:

Your pre-approval can be used on ANY home.

The property itself may impact how much you’ll ultimately be able to borrow, especially when it comes to the final cost. So even if you were approved for a specific amount, your pre-approval might not be work in that particular property. This is most often the case when it comes to properties like condos and townhomes that may have higher final cost due to property tax rates and homeowners association fees. 

Myth #6:

You don’t need a real estate agent.

Searching home listings via the internet is easy but presenting you a list of homes for sale isn’t the only thing a real estate agent does! They work as your advocate. They know the housing market well, know all the right questions to ask, negotiate on your behalf, and make sure that you are absolutely satisfied with your new home purchase. 

Whether you’re a first-time buyer or an experienced “flipper,” real estate agents offer an invaluable service in the homebuying journey. 

So what’s the truth about purchasing a home as a first-time buyer? It’s easier than you think! Contact us today to get matched with a home loan program that fits your budget and lifestyle. For the fastest response, use our contact form located on our site or give Tara Mortgage Services a call. We look forward to serving your mortgage needs!

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!

Analyzing your next RE Deal and the actions steps from A-Z to get to closing

Saturday, Oct 12, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

25 Members Attending

We will discuss the steps from start to finish in detail. From creating your business model, how to find the great deals before the other person does and the specific steps to get that deal under contract and to the closing table. We are going to cram in a lot in 2 hours but it will be worth every minute.

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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
203 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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The ABCs of Land-lording

Thursday, Oct 10, 2019, 6:30 PM
9 Attending

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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

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

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Debunking 10 Credit Score Myths!

DHREA 01/10/2018

 

Your credit score is one of your most powerful tools for planning your financial future –mostly because it determines the terms of loans like mortgages. Unfortunately, there’s a lot of misunderstandings about FICO scores, and it can lead you to miss out on the benefits of your credit.

Myth #1 Checking Your Credit Lowers Your Score

There’s a difference between you checking your credit and a creditor checking your credit. When you apply for credit, the creditor conducts “a hard inquiry” to review your rating. Only hard inquiries affect your score. Inquiries stay on your report for 24 months, but only the ones from the past 12 months affect your score.

The good news is that one or two inquiries a year are nothing to worry about. But have been applying for credit or loans more than three times a year, it may start lowering your score.

Myth #2 Your Debt-to-Income Ratio Affects Your Score

Debt-to-income ratio is the amount of monthly debt obligations, like car payments, compared to your monthly gross income. Credit bureaus don’t have access to your income so there’s no way for them to factor it into your score. DTI ratios are most often used to determine how much home you can afford. Considering this, it’s a good idea to lower your debt to get a larger loan. However, when it comes to your credit score, your debt-to-income doesn’t affect it.

Myth #3 The Higher the Debt, The Lower the Score

Not all debt is the same! Debt from a mortgage, even a $300,000 mortgage loan, is considered “good debt” because a home is a financial investment. $15,000 credit card debt, on the other hand, is bad debt.

Keep your credit balances low, preferably below 15% of the credit limits, and you’ll be on your way to maintaining your FICO high.

Myth #4 Paying Off Collections Raises Your Score

This one is surprising. Once a collection agency is involved, your score is going to take major hit. Even after you pay off or settle the debt, the delinquency will still show on your report. The only way to remove it is by disputing it with all three major credit bureaus. It’s not easy but worth the effort!

Myth #5 Your Credit Becomes Joint with Your Spouse

When You Get Married Getting married doesn’t automatically include your spouse on your credit nor does it add you on theirs. If you want to be added to their account and possibly reap the benefits of their credit score, your spouse needs to call creditors to have them add you. 

Myth #6 A Better Job Means You’ll Have a Better Score

Despite credit bureaus having your employers information, they don’t have access to your salary or yearly income. So a better paying job won’t affect your credit score. On the other hand, higher income could mean you can now pay down debt –and that definitely increases your credit score! 

Myth #7 If You Don’t Use a Credit Card, You Should Close It

The longer your credit’s open, the better it is for your score, so you never want to close credit cards. However, creditors may end up closing it if there’s no activity so try to use it (and pay it off) every month to keep it open.

Myth #8 Opening a Credit Card will Hurt Your Score

This myth is a little tricky. While opening a new credit account will make your score drop initially, it’s only temporary. After a few cycles of payments, your new credit will start to rise again and even improve from where it was in the first place.

Myth #9 One Late Payment Won’t Lower Your Score Much

Payment history is the most significant factors in your FICO score. Even just one payment that’s late by 30 days lowers your score by 50 points or more. Don’t let this happen to you! Set up a reminder or automatic payment schedule and avoid making this costly mistake.

We partnered with Steven Millstein, Editor at CreditRepairExpert.org, for more information and a listing of the best credit repair companies out there. Visit this fantastic article: https://www.creditrepairexpert.org/credit-repair-companies/!

 

 

Don’t miss Alex Deacon’s October workshop! You won’t want to miss Alex and our special guest speaker Josh Caldwell discuss our most requeted topic: finding and analyzing real estate investments. RSVP below!

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

 

 

 

 

 

 

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#TaraMTG Tuesdays: 10 Credit Score Myths DEBUNKED!

DHREA 10/07/2018

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

Your credit score is one of your most powerful tools for planning your financial future –mostly because it determines the terms of loans like mortgages. Unfortunately, there’s a lot of misunderstandings about FICO scores, and it can lead you to miss out on the benefits of your credit.

Myth #1 Checking Your Credit Lowers Your Score

There’s a difference between you checking your credit and a creditor checking your credit. When you apply for credit, the creditor conducts “a hard inquiry” to review your rating. Only hard inquiries affect your score. Inquiries stay on your report for 24 months, but only the ones from the past 12 months affect your score.

The good news is that one or two inquiries a year are nothing to worry about. But have been applying for credit or loans more than three times a year, it may start lowering your score.

Myth #2 Your Debt-to-Income Ratio Affects Your Score

Debt-to-income ratio is the amount of monthly debt obligations, like car payments, compared to your monthly gross income. Credit bureaus don’t have access to your income so there’s no way for them to factor it into your score. DTI ratios are most often used to determine how much home you can afford. Considering this, it’s a good idea to lower your debt to get a larger loan. However, when it comes to your credit score, your debt-to-income doesn’t affect it.

Myth #3 The Higher the Debt, The Lower the Score

Not all debt is the same! Debt from a mortgage, even a $300,000 mortgage loan, is considered “good debt” because a home is a financial investment. $15,000 credit card debt, on the other hand, is bad debt.

Keep your credit balances low, preferably below 15% of the credit limits, and you’ll be on your way to maintaining your FICO high.

Myth #4 Paying Off Collections Raises Your Score

This one is surprising. Once a collection agency is involved, your score is going to take major hit. Even after you pay off or settle the debt, the delinquency will still show on your report. The only way to remove it is by disputing it with all three major credit bureaus. It’s not easy but worth the effort!

Myth #5 Your Credit Becomes Joint with Your Spouse

When You Get Married Getting married doesn’t automatically include your spouse on your credit nor does it add you on theirs. If you want to be added to their account and possibly reap the benefits of their credit score, your spouse needs to call creditors to have them add you. 

Myth #6 A Better Job Means You’ll Have a Better Score

Despite credit bureaus having your employers information, they don’t have access to your salary or yearly income. So a better paying job won’t affect your credit score. On the other hand, higher income could mean you can now pay down debt –and that definitely increases your credit score! 

Myth #7 If You Don’t Use a Credit Card, You Should Close It

The longer your credit’s open, the better it is for your score, so you never want to close credit cards. However, creditors may end up closing it if there’s no activity so try to use it (and pay it off) every month to keep it open.

Myth #8 Opening a Credit Card will Hurt Your Score

This myth is a little tricky. While opening a new credit account will make your score drop initially, it’s only temporary. After a few cycles of payments, your new credit will start to rise again and even improve from where it was in the first place.

Myth #9 One Late Payment Won’t Lower Your Score Much

Payment history is the most significant factors in your FICO score. Even just one payment that’s late by 30 days lowers your score by 50 points or more. Don’t let this happen to you! Set up a reminder or automatic payment schedule and avoid making this costly mistake.

Surprised by some of these credit myths? We bet you’ll also be surprised by how much you qualify for and the great terms Tara Mortgage Services offer (even with less than perfect credit). Contact Tara Mortgage Services today!

 

Connect with over 460 Real Estate Investors! Join Alex Deacon’s MeetUp group today!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
463 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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