If your mortgage application has been denied, you don’t have to give up on your home ownership dreams. There are steps you can take to improve your ability to get approved for a loan.
First, it is crucial to get in contact with your lender. There are a multitude of reasons as to why an application can be denied. Learning why your application was denied will give you the chance to resolve any issues.
Let’s go over some common reasons an application may be denied.
Credit Score
There is a minimum credit score that borrowers will need to meet in order to receive a home loan. If your credit score does not meet the minimum requirement, your application could be denied, but you can work to improve your score. Although it takes time to improve a credit score, the benefit is worth the effort.
To maintain a good credit score, be sure to always pay your bills on time. Also, try to pay down debt to reduce your debt to income ratio. It is also best for your card balance to be low in relation to your credit limit. Even if you no longer use an account, do not close it, because your credit score is also affected by how long your accounts have been open. You should also limit credit inquiries and opening new credit lines; too many in a short period of time can lower your score.
Inconsistent Employment
There are certain employment requirements that borrowers will need to meet when applying for a home loan. It is favorable to have consistent employment; any gaps in your job history will be considered. Check to see if your income meets the minimum amount required for the loan you are applying for. Make sure that all of your income has been accounted for, including freelance, investment accounts, inheritances, and savings accounts.
Missing Paperwork
Carefully look over your loan application paperwork. Be careful that the information you provided is complete and correct. Ensure that you have provided all required documents. Missing or incorrect information can be a reason for a denied application.
Don’t Give Up!
It may take some time, but it is possible to come back from a denied mortgage application as a stronger applicant. At Benchmark, we take our job of helping you secure the dream of homeownership seriously. Even if you are not approved, you will be armed with the knowledge to do something about it courtesy of your Benchmark loan officer.
If you are serious about getting approved for a mortgage, contact us: we are here to help.
Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.
Benchmark has been named one of the 50 Best Places to Work for by Mortgage Executive Magazine!
We’re ranked #7 on average score!
Additionally, Benchmark was named to the magazine’s Top 100 Mortgage Companies in America. We landed at #38 alongside some of the biggest names in the country.
64 of our teammates were recognized as the Top 1% Originators in America. The magazine stated, “the top 1 percent of mortgage originators delivered outstanding results in a challenging market” and we couldn’t agree more!
April 26, 2022 – Steve Remington, Benchmark’s C.O.O., was sworn in as the 2022/23 President of the Texas Mortgage Bankers Association last month at the TMBA Annual Convention in Austin, TX.
The TMBA’s membership is the largest in the nation, made up of mortgage bankers, banks, credit unions, attorney firms, vendors, technology firms, and more. Remington joined the TMBA in 1998, reverent of the associations impact on legislation through legislative advocacy and policy making for the mortgage industry since 1917. Remington assumed many roles within the non-profit organization, serving on committees, boards, and projects, developing relationships with colleagues/friends he leans on for mentorship.
“I’m grateful for the tremendous amount of networking, and access to industry veterans whose careers span decades longer than my own that have been very successful in our business.”
“Their lessons in servant leadership have influenced my style of leading at Benchmark through flourishing times and moments of uncertainty.”
Steve Remington
Remington calls himself a student of the industry, and one of his goals during his presidency is to educate those in real estate finance, while attracting new members. Leadership development is a personal passion Remington shares with the TMBA. Communicating and navigating challenges and issues on a national level to protect & prosper our industry will be high on his priority list as he serves his term.
It’s the question that’s buzzing around real estate offices, mortgage companies, backyard barbecues, water coolers and passing conversations with neighbors.
The short answer is — we think so.
Yes, it is still a good time to buy.
The long answer is more complicated. Consider these four trends to help you as you make your housing buying decisions.
Higher home prices show no signs of reversing course.
Even before the pandemic, the supply of the housing market couldn’t meet the demand. In 2020, COVID-19 affected the housing market just like it did every other industry. However, we’d soon find out that the real estate market was a double-sided coin.
Let’s set the record straight. If you’re expecting the trajectory to result in a housing bubble ready to burst, reminiscent of 2008’s Great Recession, this isn’t that. The market variables that resulted in the 2007-2008 housing market crash don’t exist now. If higher home prices cause are causing you to hesitate, keep in mind that prices will likely continue to rise. Home prices were rising already before the virus, and multiple variables from the pandemic created greater demand in an already competitive market.
With the introduction of social distancing measures, many began to conduct the majority of their lives inside their homes and, unsurprisingly, wanted or needed more space. Many also sought financial security, preferring a traditional equity purchase that still carried relative liquidity amid the health crisis uncertainty. What better way to adapt to the new world than investing in your home: the very place you planned to ride out the epidemic? Many see it as a timely investment vehicle.
Buying gained popularity.
However, many other Americans had the same idea. Additionally, the COVID-19 pandemic affected the ability and access for individuals to go to work. Companies in the housing industry suffered, as workers were absent due to new mandates among other pandemic-related challenges. As the pandemic wore on, labor and building materials supply chains struggled further.
Earlier, I wrote that, before the pandemic, as well as in its beginning, housing demand had exceeded supply. The difference now is that the supply of home options is extremely low1due to the factors mentioned above, which have resulted in climbing home prices. In fact, Zillow projects a 17% year-over-year rise in home valuations for 20222.
The effects of the pandemic only added more fuel to a white-hot market. Home prices aren’t going down any time soon, even if their rise slows.
Interest rates have started correcting to higher levels.3
At the beginning of the pandemic, in the face of a developing national health crisis, the Federal Reserve took action. They pledged (and proceeded) to buy debt and mortgage-backed securities (MBSs) in an effort to help the economy.4 This resulted in an artificially high demand for MBSs, driving down mortgage interest rates. For a time, this helped add stability to the economy. It made it easier access financial resources, investments, and loans — such as mortgages. It’s not surprising that so many individuals decided to pursue homeownership during the pandemic. Demand was already outpacing supply. The lower interest rates made a home purchase that much more attractive, tipping the balance further.
As inflation has risen, so too has the labor market. The Federal Reserve has noticed, and hasclaimed that they will begin selling some of their balance sheet. This move serves tocorrect mortgage interest rates back up to normal market levels.5
A more balanced market is good for the economy, in general. However, higher interest rates will only decrease buying power for home buyers. Additionally, home buyers who have waited for prices to fall just may see prices at least hold, if not increase.
Rent price increases are breaking records6 and making headlines.
It is well-known that rent prices rise over time. This is due to a variety of factors: inflation, rising utility costs, location value, and the list goes on. With reduced supply of homes and renter instability during the height of the pandemic, rent prices are up 14% year-over-year, with some up over 30% in many major metro areas.7
Renting is a great option for those who want to stay flexible. But for those looking to optimize their finances, it’s helpful to remember that 0% of your rent payment builds your own equity. Since it’s not part of a home investment, you’ll never see any of that money again!
Although a down payment may sting at first, a fixed rate mortgage payment does not increase over time. Compare that to rent, as it continues its daunting upward climb. Renting gives no net worth gain, and leaves you at the mercy of your landlord and binding lease agreement.
In some cases, after the down payment, a mortgage payment may be lower than rent for a comparable space. Be mindful where your money is actually going. You may be able to gain some equity for your housing costs.
The cost of waiting may be higher than you expect.
For many home buyers, the down payment is the hardest obstacle to overcome. With the home price index rising8, it will become increasingly difficult to save enough for a down payment. Down payments are measured as a percentage of home pricing, and are often tens of thousands of dollars. It can be quite a challenge!
Upward trends in demand, interest rates, rent prices, and the Consumer Price Index (CPI) means saving could become more difficult. If accounting for normal expenses and goals wasn’t enough, you will also be contending with market forces beyond your control. Should these trends continue, It will be harder to save for a ~12%9 down payment.
Depending on your situation, you may need less for a down payment than you think. Building your equity sooner means you could actually benefit from rising home prices. Even in a sellers’ market, getting into a home you can afford now may benefit you in the long run. However, we’d still advise that you exercise due diligence as you determine the best real estate investment for your situation.
8 https://www.spglobal.com/spdji/en/indices/equity/dow-jones-us-real-estate-index/#overview
9 2021 median down payment: https://www.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf
In the current housing climate, the cost of waiting to make a move in the real estate market will most likely cost you more in the long run.
Buying a home is a long-term decision that should be made with careful consideration. Financial decisions should be strategic. At Benchmark, we provide education to hopeful buyers regarding trends in the market and how they could affect future plans. We are committed to listening to your vision, and getting you the right mortgage for your future success.
Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.
March 25, 2022 – (https://www.nammba.org/nammba-news/2022/3/23/y01ossl45mus481lro33y10vzs16iv)
Today marks the start of Benchmark’s partnership with the National Association of Minority Mortgage Bankers of America (NAMMBA).
Benchmark Mortgage is a nation-wide lender headquartered near Dallas, TX. For over 20 years, the company has built a dynamic lending community. Their entire business is driven by focusing on relationships. They are a community of mortgage professionals who are united by the Benchmark Core Values. These values drive the company’s culture, shape its paradigm, and have been the foundation of their success. For more on Benchmark’s core values, click here: https://benchmark.us/the-benchmark-way/our-core-values/
This partnership with Benchmark brings NAMMBA closer to their mission of increasing the engagement of women and minorities in the mortgage industry. The mortgage industry is historically homogeneous and NAMMBA hopes that this partnership will be just a small part of the path to changing that.t
“We are so excited that Benchmark decided to come on as a partner to create a more diverse mortgage industry,”
“Cooperation and collaboration are key to bringing more young people, women, and minorities into this industry and which leads to fresher ideas and ways of doing business.”
NAMMBA Founder/CEO Tony Thompson, CMB
Benchmark’s motto Is “Benchmark brings you home.” Every day they work hard to ensure that the “You” In their motto means everyone. They do not discriminate against any customer and strive to provide a first-class mortgage experience for all. Benchmark’s core values include Relationships and Excellence, and these demand that they continuously support the movement for equality in all the communities where their clients live and work. Benchmark is committed to providing equal access to everyone who desires the American dream of home ownership.
“Benchmark is a remarkable community of mortgage professionals. At Benchmark, we have a clearly defined set of core values that we live out and practice every day. Having carefully selected each team member one person at a time, and with an average of over a decade of individual experience, we have assembled what we believe is the best team in the mortgage industry today. Not only does our team go the extra mile to serve our branches, loan officers, and support teams, we also stand ready to deliver an exceptional experience that is second to none for our customers. Please reach out and let us know if we can help you take advantage of the Benchmark opportunity today”.
‘Twas a crisp, cold, clear night, when we hoped for a house.
With my hot cocoa stirring, I looked at my spouse.
We’d mapped out our assets and budget with care,
In hopes that our offer would not catch a snare.
The children were nestled all snug in their beds,
While dreams of new bedrooms danced in their heads.
My spouse in their slippers, and I in my cap,
Had just settled down for a long winter’s nap.
When from my cell phone there arose such a clatter,
I sprang from my bed to see what was the matter.
Seeing the name, I answered in a flash;
Our offer was accepted, with a loan, not of cash.
What a gift to receive, our hearts were aflutter —
In the morning we'll celebrate with hot scones and butter.
When what to my wondering eyes did appear,
A little less worry and a little more cheer.
With the offer accepted, I hung up the phone.
Knowing that we were approved for the loan,
What should we do now? We were happy as larks!
The news was like light after uncertain dark,
I feel joy for the mortgage we have with Benchmark!
Your housing timeline may have you moving right in the middle of the holiday season. It can be a crazy time, but that’s no reason not to seize the day and make some holiday memories in a new home.
However, it’s also a season when personal budget planning often gets neglected to make room for extra joy and memories — sometimes with an expensive price tag.
Benchmark is here to help.
As you assess your financial situation, be mindful of your spending. Be aware of your normal budget, and pay careful attention to your holiday expenses.
At Benchmark, we are committed to delivering a smooth and easy mortgage process. Keep these lists handy as you start your home buying process this holiday season:
DO’s:
Keep an eye on your holiday budget — remember not to make big purchases that might affect your credit score.
Keep in mind that interest rates are sometimes lower during holiday months.
Let family and friends know that you have moved addresses so they know where to send your housewarming gifts!
DON’Ts:
Don’t make any large purchases that require credit checks or open new lines of credit. This can affect your credit score and change your loan status.
Don’t wait until the last minute to complete and send the required documents to your loan officer. Doing it in a timely manner will ensure a smooth loan process.
Don’t rush putting an offer on a house just so you can close before the holiday season. Remember, this is a long-term decision.
Don’t use your entire down payment on holiday gifts. Save as much money as you can.
Don’t accept monetary gifts from relatives (e.g., accepting down payment assistance) without consulting your loan officer first.
Don’t open, transfer, or close any asset accounts without first discussing any plans with your loan officer.
This holiday season may look a little different. Maybe you forego large Christmas gifts and stick to a budget to keep your credit score on target and your mortgage process on track. But, your new home will likely be the best gift you receive this season — and we’d say that’s more than worth it.
“Home for the holidays” takes on a whole new meaning!
At Benchmark, we are committed to helping you with your home loan needs and decisions for future success.
Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.
Whether you’re buying your first home or have owned several houses over the years, you’ve heard of the 30-year fixed rate mortgage. Many people choose the traditional, 30-year loan for the financial flexibility it provides.. Like most things in life, there are pros and cons.
A Fixed Rate 30 Year Mortgage…
✓ Offers a lower payment amount than similar loans with shorter periods, allowing other income to go toward necessities, retirement accounts, college savings, etc. ✓ Requires more interest in the long run in exchange for the lower payments over time. ✓ Provides the opportunity to own more property than a 15-year mortgage would allow due to the lower payments.
Whatever the reason you chose a 30-year mortgage loan, it may someday occur to you to consider paying off the loan early.
So, the short answer is yes. You can pay off the loan early. However…
Consider these two questions:
Should you pay off the loan early?
If the answer to the first question is yes, what is the best way to do that?
The answers to these questions depend on the reasons behind your payoff decision. Your highest priority could be one or more of the following.
Do you want to be debt-free?
Are you looking to save money on interest?
Do you need your income for other needs?
Do you want to reduce your monthly expenses?
Once you understand your financial motives, you will be able to make the best choice for you.
Should I pay off the loan early?
First of all, congratulations for even reaching the point of considering paying off a loan early. That’s an accomplishment in itself!
Many people who pay off their mortgages early are motivated by the peace of mind that comes with lowering debt, and saving thousands of dollars of interest payments.
Before you take action:
Find out if there is a prepayment penalty on the mortgage.
A prepayment penalty is a rare circumstance — but it is possible.
Consider any other debt first.
Should your money pay off something more time-sensitive first or another loan that has a higher interest rate?
Remember your other financial goals.
Do you need to put money toward your retirement savings, emergency funds, college savings account, etc.?
Consider whether your extra payment amount would serve you better elsewhere.
Sometimes the potential for earnings in another opportunity exceeds or offsets interest payments.
Find out how long you have left to pay off the loan.
See if the interest amounts you save would be worth lowering your monthly usable cashflow.
It’s a good idea to evaluate your current financial situation, as well as what you want your future to look like, before making any decisions.
What are some smart ways to pay off a mortgage early?
Once you have determined that it would be wise to pay off your mortgage, there are multiple ways to do so and become free of housing debt!
It is also good to remember that paying off a mortgage early doesn’t mean you have to pay it off all at once or immediately.
Taking baby steps toward a goal is often better than taking a giant, unsteady leap! It’s vital to choose what works best for you.
Here are some options you might want to consider:
Make extra monthly payments.
Extra monthly payments are the baby steps that can get you to your goal!
If most of the value of your latest monthly payments go to principal, timing your extra payments is less impactful; you’ve made it past the maximum opportunity to save the most on interest.
However, if most of the value of your latest monthly payments go to interest, we’d recommend waiting toward the end of the month — as this will reduce your interest payment a little on your next pay period. This method takes patience, but your overall savings will build up to a large amount over time!
Make an extra annual payment.
Although this won’t make your payoff date come as quickly as making monthly payments, every little bit counts! And, the advise to make the payment toward the end of a month still stands.
Put bonuses and unexpected income toward your loan.
Occasionally, you’ll receive extra during the holidays or through a special turn of events. Why not invest in yourself and your financial situation by putting it toward your mortgage? Your future self will thank you!
Refinance the loan with a shorter-term mortgage.
Shorter term loans typically come with lower interest rates. If this is a solution you would like to explore, let’s see if we can come up with a creative option that meets your needs. Contact your local Benchmark branch to discuss your options.
Pay off the mortgage completely — evaluate your financial position with a financial planner or loan officer.
Benchmark would welcome the opportunity to talk with you about this. We want you to make the best decision possible for you and your financial goals! Contact your local Benchmark branch to learn more.
Ultimately, everyone’s situation is unique, which means everyone’s method to a mortgage payoff will be different. But with some hard work and financial strategy, it is possible! We’d love to help you move toward better financial well-being overall.
At Benchmark, we are committed to helping you with home mortgage loan needs and decisions that set you up for future success. To learn more, contact your local Benchmark branchcontact us todaycall me or contact me today. We would be honored to provide you with our famous, excellent service!
It’s a seller’s market, and it’s not easy to make an offer within twenty-four hours to beat the crowd....If your search has faced competition, low inventory, or financial limitations, consider getting creative. These four unique housing options could help to cut costs so you can save faster for a possibly larger down payment.
The housing market has been as hot as the day is long. Are we finally beginning to see a cooldown?
Although the housing market is still expected to favor sellers, we may be at a tipping point. Prices have risen so dramatically that buyers appear to be backing off, and home sales seem to have slowed.
Market Temperature Is Relative
Even with slowing sales, we still see bidding wars and cash offers over asking price. These will likely continue, especially for valuable properties in desirable locations. What we are seeing now is probably a softening of the housing market. Days on the market for properties is increasing, the amount of price cuts are going up, and properties are sitting for a bit longer, especially if they are not the crème de la crème. All this is thanks to a decrease in demand.
Lack of Affordability Is the Coolant
After experiencing a housing surge through the pandemic, the number of mortgage purchase applications appears to be close to pre-pandemic levels. According to a new Redfin study released earlier this week, home sales fell 1.2% from May to June, the largest drop at this time of year on record since at least 2012. In June, we entered a new phase of the housing market; home sales cooled because prices have increased beyond what many buyers can afford.
Builders Still Deal With High Material Costs
In the meantime, builders struggle with supply shortages, elevated costs for building materials — particularly lumber — which has skyrocketed to more than 500% above its January 2020 level. While lumber prices have decreased slightly, those relative “savings” have not yet been realized by remodelers, builders, or consumers yet.
Bullish Builders?
Why are Builders & Developers being so bullish while unemployment ticks up? Because they recognize an opportunity when they see one. Here are two key factors:
Home price growth in the last 12 months: 15-20% year-over-year growth, according to K. Schiller, gives builders an opportunity to profit by selling new homes while demand is hot, and
Interest Rates are relatively low: It is easier and more affordable to get financing for newly build homes.
Housing is not a “Recession-Proof” Market
Is the housing market immune from the effects of other sectors of the economy? Not exactly. In an effort to support the economy in the face of the COVID-19 pandemic, the government chose to intervene, by means of the following:
Foreclosure and Evictions moratorium: preventing those economically impacted by the pandemic from losing their homes. (expiration at end of July)
Extended Unemployment assistance: to give financial support for those whose jobs may have been lost due to the pandemic.
Stimulus Checks: to lend financial support for the general economy at large.
Lower interest rates: the US Treasury has been buying mortgage-backed securities, creating artificial demand to drive down interest rates.
These factors have made it hard to see the effects of the US having lost 6 million jobs from the nation’s pre-covid levels.
However, not all areas in of the US economy have grown much over the last year. In fact, during the job losses, the accumulated debt, and the decline in legal immigration due to COVID, fundamentally, the demand for homes and apartments is not increasing that much. However, the permitting of New House & apartments and the construction of these is increasing a lot to help give relief to the housing shortage that we have been experiencing for several years. The increased inventory may also help bring balance to an overheated market.
Need a hand navigating the housing market?
If you are interested in buying a new or next home, refinancing your current home, or looking to fund a renovation, Benchmark is ready to be in your corner.
Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service.
