Real Estate Tips

Quick tidbits of advice and ideas about real estate.

Found 103 blog entries about Real Estate Tips.

If you own an investment property, you already know that getting a mortgage for this type of property is different than a refi of a primary home. If you recall, the qualifying requirements for getting an investment loan are more stringent than a primary home loan. 

Let's take a look at everything you need to know about refinancing an investment property.

Why Refinance Your Investment Property?

Owning a second property comes with costs, and some may feel that these additional costs tie up too much of their free cash flow. Others choose to refi to free up some money for repairs or improvements to the property. 

If this sounds like you, it could make sense to refinance into a better rate --possibly lowering your mortgage payment --and

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Have you been asked to cosign by someone looking to get a home loan approval? You may be wondering why they would ask or how this affects you. This article will help you to understand both of these points. 

 

Why Were You Asked To Cosign? 

These are the top reasons that home loan applicants seek a co-borrower:

  • Income: People may ask for a cosigner to include more income on their mortgage application. Higher income on the application can make it easier to get approved or borrow more from the lender.
  • Credit score: Having someone with a higher credit score may help to secure a lower rate. 
  • Employment: Little or poor employment history can prevent mortgage approval. Having a cosigner with better employment history can aid in getting
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Ever wonder why it's essential to keep your debt in check when applying for a mortgage or what debt matters to your approval? This article will help you answer these fundamental questions so that you're in a great position to get approved for a home loan.

All About Debt-To-Income Ratio (DTI)

Your debt-to-income ratio (DTI) is one of the most critical metrics lenders use to determine how much home you afford because it directly influences the monthly payment you can qualify for.

DTI is a ratio that compares your existing monthly payments with your gross monthly income before taxes. Depending on the mortgage program and your qualification metrics, two types of calculations are used in mortgage qualification: 

  • Front-end DTI -looks at the
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If you’re a first-time home buyer here in Middle Tennessee, you probably know this is one of the biggest purchases you’ve made. Additionally, each stage of the process is quite complex and can leave buyers feeling stressed and overwhelmed. 

In order to make your financing, shopping, bidding, escrow, and closing easier, Parks Realty recommends joining forces with one of our Accredited Buyer’s Representatives, or ABRs. What follows is a brief, partial overview of what your buyer’s agent will do for you.

Financing

Your ABR will assist you with analyzing your finances and determining how much you can safely spend on your home. Next, your ABR will help you choose from among trusted sources for your mortgage loans. 

Once you have an idea of

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One of the perks of a mortgage is the "mortgage interest deduction." Read on to learn what a mortgage deduction is, how much you can reduce from your taxable income, and how you can take advantage of this tax incentive.

About Mortgage Interest Deduction

The mortgage interest deduction is part of your itemized tax deductions, and it subtracts any interest you've paid on loans used to build, purchase or renovate a property. This means that you can subtract a portion of the mortgage interest for primary and secondary homes every year when you do your taxes. This, in turn, reduces the amount you owe Uncle Sam. 

To be clear, this perk does not include payments you've made to your homeowner's and private mortgage insurance (PMI). Here's a list of

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Veterans have benefits awarded exclusively to them for their dedication and service, including disability and education compensation, career training, health care, and even home loans. However, with federally-funded home loans, there is more than one option. When it comes down to it, what is the best – FHA loans or VA loans? This article will help you understand and make an informed decision on which loan is best for you. 

FHA Loans

An FHA loan is a US Federal Housing Administration mortgage insured by the government and provided by an FHA-approved lender. The requirements for FHA loans are not that hard to obtain, especially when it comes to the credit score. For example, some of the requirements for FHA are: 

  • A credit score of 580 or
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If you are considering purchasing a property to rent through Airbnb or are debating converting a current long-term rental into a short-term rental, you're likely weighing the pros and cons of running an Airbnb in Middle Tennessee. 

You’ve probably heard that renting properties through Airbnb, VRBO, or booking.com can be far more lucrative than long-term renting, which can be true but isn’t always so. Furthermore, even a successful Airbnb host may decide that the gig isn’t a good fit for their personality, lifestyle, and location.

So, let’s dive right in: what are the pros and cons of becoming an Airbnb host?

The Pros

1.) Higher Income Potential

The first, most obvious benefit to choosing short-term rentals is that they bring in

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Purchasing real estate is one of the most reliable paths toward building personal wealth, especially in Middle Tennessee, where home values are consistently increasing. However, the amount of your home’s value that should be included in your assessment of your net worth is called equity, and it is our topic today. Whether you’re shopping for your first property, wondering whether equity can help you improve your current home, or are curious whether paying off more of your home loan now is the fastest way to beef up your wealth, we’re here to help. 

Q: What is equity, and how is calculated?

A: Simply put, equity is the dollar amount assigned to the percentage of your home that you independently own.

For simplicity’s sake, let’s use

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An interest-only mortgage starts with payments that only pay down the mortgage interest. Generally, this makes your monthly payments lower than a typical mortgage payment. This option is attractive for those who cannot afford high mortgage payments. However, it has its drawbacks if you're not careful. Let's explore the benefits and disadvantages of interest-only mortgages. 

Benefits

  • Interest-only loans give you time to increase your income. Are you expecting an income increase in the next few years? Then an interest-only loan can be advantageous. For example, let's say you're in a lower management position right now but on track for a promotion in the next year or so. Once you move up, your earning power will also increase. An

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A home equity line of credit (HELOC) is a type of mortgage loan that acts similar to a credit card, except the line of available credit is tied to your home's equity. So instead of using funds advanced to you by a creditor, you use the cash from the value of your home.

HELOC Benefits

  • Lower Interest Rates  HELOC interest rates tend to be lower than personal loans or credit cards. 
  • You Only Pay For What You Use - You're charged interest only if you withdraw funds. 
  • No Closing Costs - HELOCs often have low or no closing costs, making them an attractive alternative for small loan amounts. 

Applying For a HELOC 

Similar to applying for a mortgage, there will be a credit review and a home appraisal. However, some lenders may only

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