Tag Archives: Real Estate Investing

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

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

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

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

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

Your Credit Score

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

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

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

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

Your Loan-to-Value Ratio (LTV)

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

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

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

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

Your Debt-to-Income Ratio (DTI)

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

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

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

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
688 Members

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

Check out this Meetup Group →

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

Pittsburgh Landlord Group

Carnegie, PA
160 Members

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

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

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

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

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

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Real Estate Investing w/ Alex Deacon (Podcast): Home Inspection Tips for Flips

DHREA 20/06/2019

In this episode of Real Estate Investing w/ Alex Deacon, “The Deacon of Real Estate” reminds you of the little details you may miss when looking for your next flip, and what home inspections are essential.

Alex details some of his personal faux pas to use as reference points, and reminds you to look through a buyer’s or home inspectors eyes. Sometimes the little details can be the most costly in the end.

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

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

Realtor Nation Podcast (Ep17): Josh Adamek, President and Investment Manager for Adamek Ventures, Inc.!

DHREA 17/06/2019

 

In the latest episode of The Realtor Nation Podcast, Ian Hoover sits down with Josh Adamek, President and Investment Manager for Adamek Ventures, Inc.!

Josh has a strong investment background in the Pittsburgh market. Since the inception of his investment career at the age of 21, Josh has been a principal in more than 100 residential and commercial real estate transaction with a market value in excess of $20,000,000. What made this possible for Josh is the safe, secure use and leverage of private and institutional investor capital. A true testament to Josh’s values and business sense is that through all of these transactions he and his companies have never, ever missed a payment or targeted return for their investors and almost every investor has chosen to reinvest when given the opportunity. As Adamek would say, “It sometimes take years, if not decades to build relationships and credibility. Minutes, if not seconds to destroy them.”

In addition to his work with Adamek Ventures and his other company, Synergy Capital, Inc., Josh volunteers his time serving as President on the board of directors for Acre of Pittsburgh. Acre is a real estate investors association with more than 400 active members and has been around since the early 80’s. Acre’s purpose is to develop and support responsible real estate investing through networking, training and education.

Along with being an active board member, Josh was asked to start teaching investment classes and workshops through Acre of Pittsburgh. He began doing so but only as an opportunity to give back to the group and other organizations. Rather than accepting payment for these classes, Josh chose to run the events as fundraisers donating all net proceeds to Glimmer of Hope, a Pittsburgh based breast cancer foundation.

This episode is filled with information from two highly successful entrepreneurs! Don’t miss this one!

 

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

Real Estate Investing w/ Alex Deacon (Podcast): Turn Key Property Investments

DHREA 07/06/2019

Turn Key property investments seem so easy and too good to be true. That’s because they are! Turn Key deals are not as easy as one would think, and in this episode, Alex Deacon guides you through steps YOU should be taking before investing in a Turn Key property.

Knowledge is your ultimate weapon when it comes to being successful in Turn Key investments. “The Deacon of Real Estate” weighs out the risk versus reward, questions you should be asking, and answers you should be demanding. Set yourself up for success! Don’t miss this episode!

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

Finding and Quickly analyzing your next RE Deal

Saturday, Jun 8, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

39 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 →

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
153 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…

Next Meetup

Landlord FAQs

Thursday, Jun 13, 2019, 6:30 PM
13 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
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