David Krushinsky

Are You A Good Neighbor Next Door? Phoenix Loan Program for Firefighters, Police Officers, EMTs and Teachers

Are you a Firefighter, Police Officer, EMT or a K-12 School Teacher? If so, you may be eligible to purchase a home in Phoenix, AZ using the Good Neighbor Next Door Program. Under this program, you may qualify for up to a 50% discount off the purchase price for homes located in certain revitalization areas in Phoenix.

•· Live Where You Work - If you qualify for this program, you must choose a home that falls in the area where you serve and work. Example: if you serve in Phoenix, and fall under one of the professions, you are eligible only to purchase a HUD repossessed home in the City of Phoenix neighborhood limits, unless you are a law enforcement officer. The live in/serve in rule does not apply to police officers.

•· Time Limits and Employment - Anyone purchasing a HUD home using the Good Neighbor Next Door Program must agree to reside in the property for at least three years, agreeing to sign a "silent-second" mortgage. If the property is sold within the first three years the silent-second must be repaid on a pro-rated basis.

•· Financing - You may finance all closing costs and must be able to make a down payment of at least one-hundred dollars.

It is always advantageous to get pre-qualified, especially when you are looking to purchase your home in the competitive Phoenix market. Before you begin your search for your home in Phoenix, AZ, you should contact the Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com to find out if you qualify for the Good Neighbor Next Door Program.

Whether you are a first-time homebuyer or a veteran homeowner, one of the main qualifying requirements involved when mortgaging a home in Phoenix, AZ is your credit score. However, most of us have no idea what actually makes up our credit score. Many borrowers have the mindset that making their payments on-time will automatically equate to a high credit score. While this is an important component, it only accounts for approximately one-third of your overall score.

The following is a breakdown of the five key factors that contribute to your credit score:

•· Payment History - 35%

•· Balances Carried - 30%

•· Credit History - 15%

•· Mix of Accounts - 10%

•· Credit Inquires - 10%

Payment History - This is definitely one of the most important elements in determining your credit score. The highest weight is placed on those balances with the highest pay history, such as mortgages and other large monthly payments. Accounts that have a history of late payments, charge-offs or collections will all negatively affect your score. The more recent the delinquencies, especially within the last six months, will have a greater impact. The one thing that will always improve your credit is time!

Balances Carried - The second most important factor is the proportion of balances held compared to the total credit available. The primary type of accounts analyzed in this component is your revolving credit. This includes major credit cards, department store/retail, gas cards, etc. Mortgage and auto/installment loans are included in this portion, but carry a much lower weighting factor. The general rule of thumb to maximize your credit score is to keep your balances under 30 percent of the available limit. For example, if a credit card has an available limit of $10,000 the outstanding balance should not exceed $3,000. Spreading balances between cards to keep the outstanding balances below 30 percent of the available limit will help to maximize your credit score.

Credit History - This component is directly related to the length of time your accounts have been open. The longer the account has been open and the longer the account has a history of being paid as agreed, the higher impact it will have on your credit score. NEVER close credit accounts with a long history that are in good standing. This will shorten your credit history and have an adverse affect on your score.

Mix of Accounts - This category refers to the type of accounts you have open. The "ideal" mix is to have a mortgage, auto/installment loan, and 3-5 credit cards/revolving accounts. You can still have a high credit score without this exact mix. Therefore, if you have less than three revolving accounts it is good to open a new account, but DO NOT close accounts if you have more than five.

Credit Inquires - When you apply for credit and give a lender permission to check your credit history and score, this will reflect as an inquiry on your credit report. Each inquiry averages approximately a 5 point decrease in your credit score. However, if your credit is pulled multiple times for the same type of inquiry, i.e. mortgage loan, within a 30 day period, it is only counted as one inquiry. Only the first 10 inquiries within a year have an effect on your credit score. There are also certain types of inquires that have no hurt your score, such as annual reviews, employment, insurance, promotional offers (pre-approved offers in the mail), and utilities.

It is always advantageous to maximize your credit potential, especially when you are looking to either purchase or refinance your home in Phoenix, AZ. Before you begin your search for your home in Phoenix, AZ you should contact the Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com to find out how a mortgage lender will analyze your credit score.

Thinking back to the days before being in the mortgage industry, I remember feeling like I didn't have a clue how to get a mortgage when I bought my home in Glendale, AZ. This was before it was easy to jump online, go to Google, type in Home Mortgage Phoenix and start reading the endless amount of information about financing a home in Glendale, AZ. I decided to write down a few basic tips that may make it easier for a first-time homebuyer to get through the process when purchasing a home in Glendale, AZ.

1. Go to www.annualcreditreport.com and view your credit report to see if there are any items listed that do not belong on your report. You may be surprised to find that there are items that may not be yours especially if you have a common name, i.e. John/Jane Smith. You can do this prior to applying for a home loan and it won't affect your credit score.
2. Prepare your financial documentation for your lender prior to meeting with them. Your lender is going to require you to provide W-2's for the last two years, paystubs, bank statements etc. You need to make sure that when you get pre-qualified you have all this documentation and provide it upfront. For a complete list click here.
3. Be proactive! Call your lender once a week and ask them how things are going or if they need any documents. Most lenders will call you when they determine they need additional documents but its better to be proactive so you don't miss your closing date due to a delay with your paperwork.
4. Plan on ordering your appraisal as soon as possible. With all the recent changes in the lending industry with the HVCC and MDIA, it's a good idea to order your appraisal once your purchase contact is ratified. Home values in the Phoenix metro area seem to be increasing, so you may have a problem with the value of the home if there aren't enough sales that support the purchase price. If the appraisal comes in low you will have to renegotiate the sales price or pay the difference.
5. Last but not least, set up your hazard insurance policy with your insurance agent at the beginning of the transaction. This will allow your agent to check the history of claims on the property, also known as a C.L.U.E. report. Your agent can then tell you how much your policy will cost on an annual basis. The agents name and contact information should be provided to your mortgage consultant once you determine who will represent you.

For additional questions on how to finance a home in Glendale, AZ contact David Krushinsky at 602-695-7575 or david.krushinsky@wjbradley.com.

The FHA 203K Rehabilitation Loan was started as a tool to help the revitalization of neighborhoods and communities throughout Glendale, Arizona and the United States. This loan program offers borrowers the resources to rehabilitate they're home in Arrowhead Ranch that may be in need of limited repairs and/or upgrades without exhausting their savings. This can be used for either the purchase of a fixer-upper or the refinance of a home they currently occupy. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

The FHA 203(k) loan is available to borrowers of all income levels who plan to occupy their house in the Arrowhead Ranch area. This loan also opens the door for many Arizona first-time homebuyers and applicants with less than perfect credit, while still allowing for low down payments. Properties eligible for this product include any single family residences, condominiums, manufactured homes, townhouses and properties with one to four units located in the Arrowhead Ranch area in Glendale, AZ.

The Streamlined 203(k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The repair costs can be up to $35,000 and there is no minimum requirement. (***Please note that there are also 203(k) loan programs available without a maximum repair cost amount and additional improvements capabilities.)

The following is a list of some of the eligible improvements and/or repairs:

• •- Repair/Replacement/Upgrades of roofs, gutters, HVAC systems, plumbing, electrical systems and flooring
• •- Minor remodeling of kitchens and bathrooms
• •- Purchase and installation of appliances
• •- Painting - exterior and interior
• •- Weatherization including insulation, weather stripping, storm windows and doors
• •- Window and door replacement and exterior wall re-siding
• •- Lead based paint stabilization and abatement of lead based paint
• •- Repair/Replace/Addition of exterior decks, patios and porches
• •- Repair to existing swimming pools up to $1,500
• •- Repair/Replacement of septic system and wells
• •- Accessibility improvements for persons with disabilities
• •- Finishing/remodeling of basements, not including structural repairs

The actual cost of the renovation is based upon the contractors' accepted contracts specifying the scope of work, cost of materials and labor and timeframe. All repairs must be completed by a contractor within 3 months of the closing date. Borrowers are required to have the necessary expertise and experience to perform work. Please feel free to contact the Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com for any additional questions related to the FHA 203K Rehabilitation Loan in Arrowhead Ranch.

Free Continuing Education in Glendale, AZ

You are invited to attend the continuing education seminar "Answers To Tough Questions About Credit In Today's Market" on Thursday, July 17th from 6:00-9:00pm.

This event is provides (3) three Accredited General Hours towards your Continuing Education requirements for the State of Arizona.

David Krushinsky, a Certified Mortgage Planning Specialist and Licensed Instructor, will address those tough questions regarding your clients credit in today's real estate industry.

The following are a few key topics that will be discussed:

• Is it better for your client to file bankruptcy or to foreclose?
• What is a short sale and how can it affect your clients credit?
• What about a Deed-In-Lieu of Foreclosure?
• Foreclosure vs. Short Sale
• What should my clients do???
• Many more items to cover!!!

Don't miss out on this opportunity to learn about new and changing information and get your questions answered.

The Seminar will be held at the Foothills Recreation & Aquatic Center 5600 West Union Hills Drive, Glendale, AZ 85308. Please RSVP to reserve your seat. For any questions or to RSVP, please contact David Krushinsky at 623-594-7600 or email david.krushinsky@wjbraldey.com

Accredited by C. David McVay School - 3412 E. Dunlap Ave., Phoenix, AZ 85028 602-749-2098 Email: dmcvay@cdavidmcvayschool.com ; www.cdavidmcvayschool.com