David Krushinsky - Phoenix Mortgage Professional

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@dkhomeloans.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@dkhomeloans.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@dkhomeloans.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 602-695-7575 or email david@dkhomeloans.com 

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

• Desert
• Cactus
• Scorpions
• Rattlesnakes

These are all the things that come to mind when you normally think of Phoenix, Arizona.  Having been born and raised in Phoenix, Arizona there are many more things to do here.  At the time of writing this article it's 113 degrees outside in Phoenix.  This is the time of year to find a nearby lake like Lake Pleasant, Canyon Lake or Saguaro Lake and enjoy some water activities. There is also a newly built water park, Wet-N-Wild, that just opened in July to take the kids to for keeping cool. Another popular activity often referred to as "Arizona's Floating Picnic" is tubing down the Salt River.  

During the winter months, you can enjoy skiing at Arizona Snobowl in Flagstaff and Sunrise Park Resort in Greer. These facilities are also open in the summer months for activities such as hiking, mountain biking and just enjoying nature on a scenic lift ride. Oak Creek Canyon and Sedona provide nice weekend getaways for golfers, nature enthusiasts and even power shoppers. Sedona is often referred to as "Red Rock Country" because of the beautiful red-rock monoliths named Coffeepot, Cathedral and Thunder Mountain that surround the city.

A popular local hangout is the newly constructed Westgate, in Glendale, located adjacent to the Arizona Cardinals stadium. Westgate offers activities such as dining, shopping, a fountain park for the kids, and a movie theater.

Known primarily for the "Grand Canyon" this beautiful state has much more to offer for someone looking to purchase a home in Phoenix.  With real estate prices in some Phoenix neighborhoods dropping to prices not seen since 1997 and favorable interest rates, now may be the time to take advantage and buy the home you have always dreamed about.  First-time homebuyer loan programs and the $8,000 tax credit is also currently available to applicants who qualify. 

For additional questions on refinancing or purchasing a home in Phoenix, contact David Krushinsky at 602-695-7575 or david@dkhomeloans.com.   

"You're in good hands with..."

"Like a good neighbor..."

"Own a piece of the rock."

What do these phrases remind you of?

That's right, insurance. We all love insurance when we need it but hate to pay the premiums. And premiums are costing us more and more every year. Insurance rates seem to go up about 15-25% per year. But there may be some savvy steps you can take to lower the bill and still have your valuables protected.

Items that push premiums higher include a pool with a slide or diving board, having a trampoline, or even a dog that has a record of biting others. These factors could be part of higher premium costs, so contact your local Glendale, AZ insurance agent and see if changes can reduce your premium payments.

There are also interior items that can impact the cost of insurance. The coziness of the wood-burning stove may be appealing to you, but to the insurance agent it could look like a fire hazard, and result in a higher premium. We ususally don't have this problem in Glendale, AZ but in the pines this may increase your annual costs.

If you have not done so already, investing in a good alarm system may enable you to shave some of the cost of insurance, while giving you some added protection and peace of mind. And be sure to ask your insurance agent about combining auto and home policies since this could help trim the overall cost of your insurance bill, too.

Often times, once the insurance policy is purchased it sits in a drawer until the need arises to file a claim. But taking the time to review your personal insurance policy, just once a year, provides the opportunity to lower the overall annual premium and makes sure your valuables are adequately protected. It is also the perfect time to make any additions for personal possessions that may have been purchased or acquired during the year, like art, home furnishings, and jewelry.

Additionally, if your Glendale home has been remodeled using the 203k loan discuss the upgrades that have been made with your insurance agent to ensure that all upgrades are covered in the policy.

It's not a bad idea to have your insurance reviewed every few years to make sure that your insurance provider is competitve with their rates and fees.  I recommend scanning all your insurance documents, getting a few referrals of local Glendale, AZ insurance agents and having them quote the policies you currently have in force. 

Remember, if you need a recommendation to a great insurance agent, just give a call at 602-695-7575 or david@dkhomeloans.com!

This is a home that Won't meet the requirements for an FHA loan on Phoenix.  Below are the guidelines most appraisers look at when they visit a home to appraise it for an FHA loan.

1: Home Inspections: Borrowers are encouraged to obtain a detailed home inspection of the property. Borrowers should research home inspector's qualifications and designations to ascertain that they feel comfortable with the individual they hire.

I recommend asking your Realtor for a referral of a qualified Home Inspector.


2: Repairs and Alterations: Deficiencies, required repairs, alterations and/or required inspections must be reported within the appropriate section of the applicable appraisal reporting form. (See Mortgagee Letter 2005-48 and 2005-34)


Required Repairs: Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants, A.K.A. the three S's:


Safety: protect the health and safety of the occupants
Security: protect the security of the property (security for the FHA insured mortgage.)
Soundness: correct physical deficiencies or conditions affecting structural integrity


Properties in Poor Condition: If the subject property is in such poor condition that it may be cost prohibitive or impractical to bring it up to FHA's minimum property requirements, the appraiser should recommend rejecting the property and contact the Lender before continuing with the assignment. If continuing:


Complete the appraisal on an "AS IS" basis, clearly marking the report as recommended for rejection for Section 203(b) and provide reasons for the rejection;
Provide a list of all major deficiencies and state that the list should not be considered all-inclusive. Additional items may be required before acceptable for FHA Insurance; and
Provide photographs of deficiencies to support recommended action.


3. Code Enforcement for Existing Properties: As stated in HUD Handbook 4150.2 HUD has neither the authority nor responsibility for enforcing code. This rests with the local municipalities.


4. Clearing Conditions on Existing Homes

All repair items required by the appraiser or underwriter must be inspected and the clearance documented.

A professionally licensed, bonded, registered engineer, licensed home inspector or appropriately registered/licensed trades person, as applicable, must provide documentation that all deficiencies have been acceptably corrected upon completion of repairs. "As applicable" has been determined to mean any individual who the lender deems to be qualified, which might be the appraiser.

Professionals as defined above may use their company's forms and letterhead to make the certifications. Appraisers and Compliance Inspectors are to use the Compliance Inspection Report, form HUD-92051. The individual signing Section II must be the person who actually performed the inspection. Section III or IV, as appropriate, is to be signed by the Direct Endorsement Underwriter.


Mortgagee Certification: When a Mortgagee Certification is used to clear minor conditions the HUD-92051 is not required.

Mechanical Certifications: Please see: Heating & Electrical section of this manual.


5. Refinances: Standard refinances require a complete appraisal with deficiencies and repair conditions reported. Although HUD does not require completion of the repairs on a streamline refinance, except lead-based paint repairs, the lender may require completion of repairs. A streamline refinance may be insured with or without an appraisal. Please see:Handbook 4155.1, Rev. 4 Chapter 1


6. Appliances: The Valuation Protocol (page D-26 of Appendix D, Handbook 4150.2) requires the appraiser to note the appliances that are present in the home at the time of inspection and whether the appliance is considered personal property or part of the real estate. The protocol further directs the appraiser to treat non-functioning appliances/equipment as deferred maintenance in the valuation process.

The manner in which an appliance is attached to the dwelling would determine whether or not an appliance should be considered part of the real estate. In some real estate markets, it may be typical and customary for certain appliances to convey with the real estate. In these situations, those appliances should be considered real estate and treated as such in the valuation of the property.

In some cases, such as that of REO properties, all or some of the appliances may be missing and there may be damage to the floor, wall or ceiling finish as a result of the removal. Depending upon the magnitude of the damage, the appraiser is expected to treat the damage to the home as deferred maintenance and reflect such in the conclusion of value. Missing appliances must be addressed by the appraiser in the valuation process, particularly when the comparable sales included a full complement of working appliances.

In cases where appliances are missing and minor repairs may also be needed, lenders are encouraged to have the borrower take advantage of the Streamlined 203(k) loan product, which has no minimum repair cost threshold and is designed to cover such improvements/replacements.

To find out more about a specific scenario you can access the Homeowner Center Reference Guide directly on HUD's website.  You may have a faster response by contacting David Krushinsky directly at 602-695-7575 or david@dkhomeloans.com. 

By now, most of you have heard of the $8,000 tax credit available to first time homebuyers purchasing a primary residence in Phoenix before December 1, 2009.  The question that seems to be on everyone's mind is whether or not the money can be obtained sooner and if so, what can it be used towards?  There have been many announcements and subsequent revisions that have made it all a little confusing.  Here is a breakdown of some of the current policies set forth.

At the end of May 2009, HUD announced that it will allow "monetization" of the tax credit.  This simply means that the anticipated tax credit can be applied towards the purchase of the home immediately rather than waiting to receive the refund.  The guidelines authorize the monetization in a few different ways.

For starters, homebuyers that believe they qualify for the credit are permitted to reduce their income tax withholdings.  This will allow buyers to accumulate more cash reserves for a down payment by increasing their take home pay.  Individuals must be cautious because if the purchase does not occur, the IRS could impose interest and penalty charges on the repayment.

Some state housing finance agencies and other government entities have introduced programs that will provide homebuyers with short-term loans that can be used towards the FHA minimum 3.5% down payment.  Longer term loans that are secured by a second lien on the property are also permitted.  The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs that can be found at http://www.ncsha.org/section.cfm/3/34/2920.  At this time, Arizona does not have any of these programs available.

In addition, FHA approved lenders are allowed to provide bridge financing to the buyer that is secured by the anticipated tax credit.  This amount is permitted to cover closing costs, prepaid expenses and down payments above the FHA minimum of 3.5%.  Unfortunately, there are no lenders participating in such programs at this time.  The broad consensus in the industry is that these loans are not anticipated to surface in the near future.  For additional questions contact David Krushinsky at 602-695-7575 or david@dkhomeloans.com.

With Phoenix home prices at an all time low, first-time homebuyers are in a prime position to maximize their opportunities in today's real estate market, especially with the authorization of the $8,000 tax credit by the American Recovery and Reinvestment Act of 2009.  The following is a brief summary of some of the key factors.   

•1.     The tax credit is equal to 10% of the purchase price up to a maximum credit amount of $8,000. 

•2.    Applies to "first-time homebuyers", which is classified as a buyer that has not owned a primary residence in the last three years.

•3.    Residence must be purchased after January 1, 2009 and before December 1, 2009.

•4.    Any single family residence, including condos and townhouses are eligible.

•5.    The full credit amount is available to individuals with an AGI less than $75,000 ($150,000 for joint return).  There is a phase out period for an AGI up to $95,000 ($170,000 for joint return).

•6.    The tax credit is refundable.  The credit amount is used to reduce or eliminate the tax liability and the remaining balance is then refunded to the purchaser.

•7.    The credit does not have to be repaid unless the home is sold within three years of purchase.  Then the entire credit amount is recaptured upon the sale.

At the end of May 2009, HUD authorized the tax credit to be utilized to cover closing costs and prepaid expenses through state housing authorities, FHA approved non-profit agencies and bridge financing.  However, at this time there does not appear to be any lender participation in this type of loan.  For additional questions contact David Krushinsky at 602-695-7575 or david@dkhomeloans.com.

The foreclosure market in Phoenix has sparked national attention and caused a dramatic increase in home sales.  According to an article published by the Arizona Republic, investors trying to reap the benefits of the bargain priced foreclosures jump started the area's housing market in the first part of 2009.  In April, investors consisted of approximately 19 percent of the Valley's home sales.  Recently, the new front runner's for home purchases belongs to Phoenix first-time homebuyers.  

Market analysts believe that first-time homebuyers will soon account for half of the area's home purchases.  It is said that the federal housing plan's $8,000 tax credit to first-time homebuyers and other neighborhood stabilization programs are providing huge incentives to help people purchase these foreclosure homes as primary residences.   

The major increase in purchases is for residences priced below $150,000.  Many of these properties are receiving multiple offers, which are helping the overall prices to climb.  Today the median home price in the Valley is $116,500, which is up 1.3 percent since the end of April.  The median price per square foot also increased 2.4 percent, reaching $84.86 per square foot in May.

Where investors dominated the market during the housing boom, accounting for 35 to 40 percent of Phoenix home sales, today lends a very different housing market.  Investors are either paying cash or being forced to contribute large down payments in order to receive financing.  Mortgage financing is more favorable to individuals purchasing primary residences and placing larger requirements on investors to deter potential future foreclosures.

If you are thinking of purchasing your first home......NOW is the time to seize all of the opportunities available!!!  Contact David Krushinsky today at 602-695-7575 or david.krushinsky@wjbradley.com.