Category: Buying a Home

Construction Loans: What to Expect

Building a new home offers many advantages over purchasing an existing home on the market. You are able to customize the home to your specific needs and preferences and avoid costly repairs of outdated features. New homes are often also more energy efficient and technologically equipped.

Different from Traditional mortgages.

Securing financing for a construction loan does differ from obtaining a traditional mortgage, however. Since the home is not yet built, there is more risk for the lender because the home being purchased is used as collateral for the loan. In other words, there is no present collateral to back the loan before it is approved. Much like applying for a traditional mortgage, you will be required to submit documentation pertaining to your income, assets, and credit history to determine if you meet requirements set by the lender to qualify for the construction loan. You and your builder will also provide detailed documentation on the building plans and construction timeline to the lender to evaluate the ability for the project to be completed on time and within budget.

Because of the increased risk that comes with building a house, you can typically expect to need a credit score of 700+ with a sizeable down payment of at least 10-20%. The specific requirements will vary based on your lender and the type of construction loan you choose.

One-Time-Close, or “Construction-to-Permanent” loans

A one-time-close construction loan, also commonly known as a construction-to-permanent loan, is a popular choice among borrowers, because it allows you to avoid the extra expense of two closings when building your new home. Because construction and permanent financing are combined into one loan, you will save on costs associated with title and appraisal fees that would occur if there were two separate closings.

With a one-time close program, the borrower will take out all of the financing to build the home, and the loan is closed before starting construction. Permanent house payments will not typically begin until the construction is completed. The loan is funded as the house is being built through construction draws to the builder. In order to receive these draws, the lender will conduct regular check-ins and inspections of the property to ensure the project is being completed according to the plans and timeline. Generally, you are making interest-only payments as the builder draws funds to build the home. Once construction is completed, the loan will be converted into a permanent note, and your permanent monthly house payment will begin.

In Summary…

Construction loans are a great option for aspiring home owners who want to build their custom dream home from the ground up. While the process differs from obtaining a mortgage on an existing home, your lender can walk you through the process and advise you on the advantages and disadvantages of undergoing a building project.

Have questions about construction financing? Get in touch with me or call me !Get in touch with your local Benchmark branch!Get in touch with us!

Benchmark Introduces New Program to Expand Options for Medical Professionals

by I Am Benchmark

Benchmark has launched a new mortgage product that is customized to the unique career and financial outlook of professionals in the medical field. Last year, we launched the Medical Doctor Loan Program to better serve medical residents and doctors. Now we have further expanded our options for medical professionals to include jumbo loan amounts up to $2 Million with our Preferred Medical Professional Program.

The new Preferred Medical Professional Program is tailored to meet the needs of medical doctors within 10 years of residency, dentists and veterinarians OR newly licensed medical residents/students who are currently employed or starting new employment within 60 days of closing.

At Benchmark, we understand what it has taken to get to this point in your medical career, so we designed our new Preferred Medical Professional Program to maximize your money, and even to exclude student loan debt in certain cases:

Loan Amounts up to $2 million¹
Student loan debt that is deferred for at least 12 months may be excluded from Debt-to-Income (DTI) calculations
Purchase and limited cash-out refinances
Loan-to-Value (LTV) up to 95%²
Available on 5/1, 7/1, 10/1 + 15/1 Adjustable Rate Mortgages (ARMS)

¹ minimum loan of $453,101 in most areas
² LTVs ≥ 90% requires Lender Paid Mortgage Insurance

Want to learn more about your home financing options available through Benchmark? Get in touch with me.Find your branch to get started.Select your loan officer to get started.

Ark-La-Tex Financial Services, LLC 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. NMLS ID #2143 (www.nmlsconsumeraccess.org) 972-398-7676. This advertisement is for general information purposes only. Some products may not be available in all licensed locations. Information, rates, and pricing are subject to change without prior notice at the sole discretion of Ark-La-Tex Financial Services, LLC. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions may apply. (https://benchmark.us)

How to Buy in a Competitive Summer Market

by I Am Benchmark

The weather is heating up, and so is the summer housing market.

With more buyers entering the market looking to find a new home during the summer months, competition can be fierce. Every homebuyer’s nightmare is finding their dream home, only to lose it in a multiple-offer scenario that drives the asking price up beyond your reach. How can you make your offer stand out in an aggressive housing market? Here are a few ways to get an edge.

Use an Experienced Agent

Think of your real estate agent as the MVP of your home buying team. The right agent will not only make your home search easier, but they can also help improve your chances when making an offer. An experienced agent will work with you to craft a great offer, and will be responsive and professional in discussions will the seller. Having a professional on your team who is knowledgeable about the local market could be the difference between your offer being accepted or rejected.

Get Pre-APPROVED

A lot of homebuyers assume that pre-qualification and pre-approval for a mortgage are the same thing. In fact, they are quite different, and which one you get can make a huge difference in the eyes of the seller. A pre-qualification is only an estimate of what you qualify for based on the income, assets, and debt information you provide. It does not include an analysis of your credit report or verification of the financial information you provide. On the other hand, getting pre-approved means your loan officer documents and verifies your financial information and reviews your credit report. After evaluation, they can issue a specific loan amount you are approved for.

A seller in a multiple-offer scenario will immediately see through a pre-qualification, and worry that if they accept your offer, the deal might fall through if you are unable to secure your home financing. A pre-approval makes your offer stronger and puts you in an optimal negotiating position.

Set Realistic Expectations

Setting realistic expectations can help reduce your stress during the home buying process. Making an offer on a home can be nerve-wracking, so it is a good idea to go into negotiations already knowing your bottom line. Make a list of what you are willing to compromise on – whether it’s sale price, contingencies, or closing costs – before you make your initial offer. Don’t let a high-stress multiple-offer situation make you commit to something that does not make financial sense for you and your family. It can be disheartening if your offer is not accepted. If this happens, just keep your head up, and continue your home search armed with your pre-approval from your lender, and the expertise of your real estate agent.

Ready to look for your new home this summer? Contact me, call , or apply now to get pre-approved.Find your local loan officer to get pre-approved.Meet the team, Contact us, or Select your loan officer to get pre-approved.

Pre-Qualification vs. Pre-Approval: What’s the difference?

by lmills

Looking at homes without knowing how much you can afford can be a waste of time for you and your realtor.

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

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The same wise sentiment can apply to purchasing a home – why start house hunting without putting in the time to get pre-approved so you can know your budget?

Armed with misconceptions, many home buyers mistakenly think that pre-qualification and pre-approval for a mortgage are the same thing. In reality, there is a big difference between these two terms. Understanding the distinction could be the difference between having your offer on a house accepted or rejected.

PRE-QUALIFICATION

During a pre-qualification, you provide your lender with your overall financial picture (including your income, asset, and debt information). After evaluating this information, your loan officer can give you a good estimate of what you qualify for. A pre-qualification does not include verifying the information you provide, nor an analysis of your credit report. Because of this, a pre-qualified buyer does not carry the same weight as a pre-approved buyer when making an offer on home.

PRE-APPROVAL

Pre-Approval is when you complete an official loan application and provide your loan officer with the necessary information to document and verify your income, assets, and debts. Your lender will pull your credit report and look over documents such as bank statements and W-2s. From this analysis, the loan officer can tell you the specific amount for which you are approved, and which loan programs might be the best fit for your unique financial situation.

	Pre-Qualification	Pre-Approval
Based on Estimates	
Based on documented information		
Income, Assets, and Verified Credit		
Written conditional commitment		
Shows serious intentions to buy		
Gives strongest negotiating power		

Bottom Line?

A pre-approval carries a stronger weight with sellers and puts you in the best negotiating position possible.

Want to get pre-approved before looking at homes? Start by Contacting Me, or Apply Now.

Want to get pre-approved before looking at homes? Find you loan officer to get started, or Apply Now.

Want to get pre-approved before looking at homes? Drop us a line, or Apply Now with our branch manager or your loan originator.

Winter, Pets, and Homeownership

by I Am Benchmark

There are a TON of benefits homeownership brings for you and your pets. 68% of American households have a pet, according to the most recent APPA Pet Ownership Survey. The most popular pet being dogs in 48% of households, followed by cats in 38% of households. With our furry friends being such a big part of our lives, there are some real perks to buying a home with your current or future pets in mind!

No More Middle of the Night Walks

Picture this: (If you currently rent with a pet, it doesn’t take much imagination) It’s freezing outside, you live in a second story apartment, and your dog wakes you up at 4am crying to go to the bathroom. You have to get out of bed, bundle up, begrudgingly grab the leash, and walk your pup downstairs, outside to do his/her business.

For renters with dogs, especially in apartments, this scenario is a daily reality. How great would it be to just be able to open the door and let your pup out? Or better yet, what if you could install a doggy door, and they were able to go out on their own? When you’re ready to buy, choosing a home with a fenced in yard can be life-changing for you and your beloved pet.

Give Your Pets the Space They Deserve

The reality is most renters settle for way less square footage than they would find in a house. This makes a huge difference when the temperatures outside are not suitable for taking a stroll. Not to mention, having the bonus of a yard can add a ton of additional space for your dog to run and play without being cooped up inside, and a fenced backyard means access to nature is a whole lot easier when nature calls. Perhaps your puppy has outgrown your current living space, or maybe you want to adopt another dog, but you just don’t have enough space. Buying a home with more square footage can have a positive impact on your pet’s, and your own quality of life!

Be Your Own Landlord and Make Your Own Rules

Many landlords restrict by weight or breed, or simply do not allow for pets of any kind. For families with pets, this can limit your options when looking for housing. For those who are locked into a lease with pet restrictions, it can be heartbreaking not being able to add a new companion to your family when you are ready. When you own a home, you are in complete control.

Say Goodbye to the Pet Deposit

Pet deposits can be a major financial burden for renters with pets. With nonrefundable pet deposits averaging between $200-$500, often per each pet, renting is a big expense for pet lovers on top of the normal expenses for caring for your beloved four-legged family member. At with the recent trend of many landlords charging pet rent, a monthly fee for having a pet, on top of your rent and pet deposit, the costs of renting with pets can really add up.

Ready to get into the perfect home for you and your pet? Call me or contact me to get started today!When to get into the perfect home for you and your pet? Find your Benchmark Branch to get started today!Ready to get into the perfect home for you and your pet? Contact us today to get started!

HUD Announces New FHA Loan Limits

by I Am Benchmark

Yesterday, December 7, 2017, the Federal Housing Administration announced that for 2018, 3,011 out of 3,141 counties in the U.S. (~96% of all counties in the nation) will see an increase in FHA loan limits.

Ceilings and Floors

In high-cost areas, the FHA’s loan limit ceiling will increase this year to $679,650, up from $636,150, providing a $43,500 increase. In addition, the floor will rise from $275,665 to $294,515, an $18,850 increase.

Reverse Mortgages

The National Mortgage Limit for FHA-insured Home Equity Conversion Mortgages, or reverse mortgages, will also rise with the loan limit ceiling from $636,150 to $679,650, for an $18,850 increase.

Next Year

FHA case numbers assigned on Jan. 1, 2018 or later will be subject to the new loan limits.

HUD’s Press Release: https://www.hud.gov/press/press_releases_media_advisories/2017/HUDNo_17-110

National Home Price Index Up 6.2% In Last 12 Months

by Steve Remington

Source: September S&P CoreLogic Case-Shiller National Home Price NSA Index Up 6.2% In Last 12 Months

Recent Analysis of the September HPI figure show as a 6.2% annual gain in home prices, up 5.9% from the previous month. Several large markets that were hit hardest in the financial crisis are reporting the highest gains, including San Diego (up 8.2%). 15 of the 20 major cities posted increases before seasonal adjustments, but all 20 reported increases after seasonal adjustments.

On the bright side, these price increases continue to be fueled by a strong economy, low mortgage interest rates, and a low inventory of homes; however, continued price increases and low inventories can put pressure on affordability for some people.

Steve Remington
Chief Operations Officer at Benchmark

Ready to Buy a New Home? 5 Free Resources to Get You Started

by lmills

Are you purchasing a home for the first time? Are you looking to move? We have compiled five free resources to ensure you have an amazing experience buying your new home.

1) Your Way Home

Do you want to learn more about the process from applying for a mortgage through closing on your new home? Do you have a realtor? Do you need one? Why do you have to sign so many documents? Confused? Don’t be. Checkout this free tool that explains the process from start to finish and provides a customized path to finding and purchasing your home after you answer four quick questions.

Go see it out here: Your Way Home

This tool is available on our loan officer sites. Go here here, and visit one to see more.

2) Simplifying the Home Buying Process In 7 Steps

What’s the difference between prequalification and preapproval? What do home inspectors look for? What happens during your closing? Watch these short videos featuring actual loan officers, realtors, appraisers, and underwriters who will walk you through the process of buying your dream home.

Check it out here: Benchmark University

3) Gather Your Documents

What paperwork do you need to compile to apply for your home loan? Your loan officer will help you gather all of the documents you need to seek approval for a loan. Want to get a leg up? Check out what documents you will need here.

See which documents you should have ready: Benchmark University

4) Mortgage Calculator

What will your monthly payment look like? How much will you pay in interest over the life of your loan? Can you really afford the house you want? Use this free, easy, and intuitive mortgage calculator to calculate your estimated monthly payment.

Do some mortgage math: Mortgage Calculators

5) eBooks on Buying and Selling

Stressed about buying a house? Having trouble selling your current home? What is a short sale? These free ebooks will help you purchase or sell a home with confidence.

Check out (no pun intended) our free eBooks: Benchmark University

Still have questions? Ready to get started? Reach out to one of our Branches to start the process of purchasing your new home today, or apply now!

Still have questions? Ready to get started? Contact us or apply now to start the process of purchasing your new home today!

Still have questions? Ready to get started? Call me, contact me, or apply now to start the process of purchasing your new home today!

Benchmark Introduces the Medical Doctor Loan Program

by jacymh

Benchmark understands that life moves quickly, especially if you’re in the medical field. That’s why we go the extra mile to accommodate your busy schedule and unique financial outlook.

Benchmark is now offering a program geared specifically toward doctors! The program is for borrowers with a medical license who would like to use future income to get a home now. It allows for up to 95% loan-to-value with a minimum credit score of 680. Individuals with student loan payment debt, have the potential to exclude student loan payments when calculating loan-to-value if you have a minimum credit score of 720, and your student loan payments are in deferment or forbearance a minimum of 12 months after the note date.

To be eligible, at least one borrower on the loan must have one of the following designations, and they must start employment within 60 days of closing:

Medical Resident
Medical Doctor (MD)
Doctor of Dental Science (DDS)
Doctor of Dental Medicine (DMD) and dental surgeons specializing in oral and maxillofacial surgery
Doctor of Optometry (OD)/Doctor of Ophthalmology (MD)
Doctor of Podiatric Medicine (DPM)
Doctor of Osteopathy (DO)

Let Benchmark make the process of buying a home easy. We will be with you every step of the way home.

Facebook Introduces Targeted Real Estate Advertising

by I Am Benchmark

Calling it “Dynamic Ads for Real Estate,” Facebook describes the service,

Facebook’s dynamic ads for real estate leverage cross-device intent signals to automatically promote relevant listings from your inventory with a unique creative on Facebook.

This is the first time the social media giant has ventured into Real Estate specific advertising, raising potential concern for platforms specializing in the niche industry. With this move, Facebook offers direct advertising access to real estate professionals who can now show relevant properties to a target audience on a platform that they already use.

Benchmark’s own Marketing Director had this to say,

Facebook entering the real estate space is huge for the every day Realtor. They will now have the ability to reach targeted, potential buyers with accurate information that comes straight from the listing agent as the source. – Garrett Finkelstein

The Future of Real Estate Ads?

Whether this poses a threat to existing niche vertical advertising platforms remains to be seen, but one thing is for certain: the advertising landscape is changing at Facebook.com.

With more Millennials interesting in buying homes, this comes across as a step towards reaching the audience where they are, in a way that is automatically optimized for both advertiser and customer alike.