David 's Blog

Even Great Warriors Die In Battle

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Mon, 08 Mar 2010 16:18:29 -0600

For many, 2010 will undoubtedly prove to be one of the toughest years in the mortgage industry. The underwriting guidelines still continue to change daily, government regulation and intervention is at an all-time high, legislation is being proposed to change compensation models for Loan Originators, more fraud verification policies are being put in place to protect lenders adding confusion, borrowers are forced to jump through ridiculous hoops and great mortgage professionals are exiting our industry in droves. Let me repeat that.... "Great" mortgage professionals are exiting our industry, not "Good", but "Great".

I'm sure you know how we got where we are at, but do you really know where we are at? Everyday I speak with my friends from markets across the United States that are considering changing careers. The same questions come up, "How is it possible to create a great experience for a borrower with this environment?" I don't pretend to know the answer because, in my opinion, there isn't one.

Telling your borrower three months after closing they need to provide proof they've personally paid a credit card on their credit report for 12 months, showing their bank statements for the last 12 months. How and why would they have trust and confidence to refer their friends and family?
When you receive a loan approval with 45 prior to doc conditions, then it takes 45 minutes to explain why so much documentation is needed. How are your clients to have the trust and confidence to refer their friends and family?
Loan guidelines forcing Mortgage Professionals to order two appraisals on a property, after one has already been received $14,000 above selling price. How are today's clients to have trust and confidence to refer their friends and family when they feel they've been mistreated and forced to pay excessive costs?

When this happens over and over and over on every transaction, why would Real Estate Professionals continue to refer their clients? It's simple... they don't. They move on to the next Loan Officer. Your past clients don't refer you anymore. You soon realize you don't have a passion for this industry anymore and "Even Great Warriors Die In Battle."

For those that make it through this, we are the survivors, we are the fighters and we are the ones who will shape the perception of this industry so many love. Live the Dream - Carpe diem quam minime credula postero!

Continuing Education for Arizona Real Estate Professionals

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Wed, 17 Feb 2010 17:12:14 -0600

FREE CONTINUING EDUCATION CLASS FOR ARIZONA REAL ESTATE PROFESSIONALS

Have your clients asked you any of the following questions and you just weren't quite sure how to answer them?

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

You are invited to attend the continuing education seminar " Answers To Tough Questions About Credit In Today's Market" on Thursday, February 25th from 1:00 pm - 4:00 pm. This event is FREE and provides (3) three Accredited General Hours towards your continuing education requirements.

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

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

The Seminar will be held at the W.J. Bradley Mortgage Capital Corporation Conference Room located at 9237 East Via De Ventura Suite #100 Scottsdale, AZ 85258 on Thursday, February 25th from 1:00pm - 4:00pm.

Please RSVP to reserve your seat. For any questions or to RSVP, please contact David Krushinsky at 623-594-7600 or email david@dkhomeloans.com

Hope to see you there!

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

Need a Low Down Payment Home Loan to Purchase in Phoenix? Homepath Financing May Be the Answer

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Fri, 05 Feb 2010 17:55:42 -0600

So you're in the market to purchase a home in Phoenix, Arizona? You've saved your money, but were hoping to find something with a low down payment. Unfortunately, most of the affordable houses in your price range are unable to be financed with a FHA home loan. It is beginning to seem like your only option may be Conventional financing, which requires a significantly larger down payment.

There is another option. It is possible to take advantage of today's low interest rates and affordable home prices in Phoenix, while still benefiting from a reasonable down payment.

You can purchase a home, which is owned by mortgage giant Fannie Mae, for as little as 3% down. Fannie Mae currently owns many homes taken over through the foreclosure process in Arizona. These homes can be financed through their new HomePath^® program, specifically for Fannie Mae REO properties. Listed below are some of the highlights.

HomePath^® Financing Highlights

Low down payment and flexible mortgage terms
Up to 97% financing for Owner Occupied homes
Up to 90% financing for 2nd homes
Up to 90% financing for Investment Properties
Borrowers purchasing a 2nd home or investment property with maximum 75% LTV/CLTV can own up to 10 financed properties
No mortgage insurance option (over 80% LTV requires a 660 credit score and additional fee)
No appraisal fees (Sales price is used to determine value)
Eligible properties include 1 to 4 units, condos, and PUD's

You can search for Fannie Mae REO's at in Arizona by clicking here. Fannie Mae is also offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on this site that are closed within this period may receive up to 3.5% of the final sales price for:

Closing costs;
The purchase of new Whirlpool® appliances by Fannie Mae; or
A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.

Our mortgage team works with many Real Estate Professionals that specialize in locating these homes for our borrowers. Please feel free to contact us for a referral of someone who is qualified to assist you in writing a contract, negotiating terms and obtaining the best long-term strategy for you and your family. Purchasing a home involves many other aspects than just negotiating a sales price. It's very important to know, upfront, how to properly structure your real estate offer upon submitting your contract to Fannie Mae. Contact us today to begin the process.

100% Financing Available in Arizona? Welcome To The USDA Home Loan

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Wed, 16 Sep 2009 20:08:49 -0500

USDA Home Loans

Are you interested in purchasing a home in Arizona but don't have the available resources for a down payment? Look no further than the U.S. Department of Agriculture (USDA) Home Loan. The USDA has a guaranteed home loan program available to help individuals and families purchase a home in Arizona located in certain qualified rural areas.

How do you qualify for a USDA loan? As with most mortgage loans, you must demonstrate your ability and willingness to repay the loan in monthly installments. Your credit history and other monthly obligations will be analyzed to determine if you have the reasonable ability to meet repayment obligations on your current debts and the new mortgage payment. Additionally, you must show that you have steady and sufficient income that is enough to meet mortgage payments, as well as discretionary income remaining each month.

Credit Eligibility

If you know you have made all past credit payments on time and have a good credit history, you are in good standing and should be a good candidate for a USDA home loan. But even if you have some "spotty" or derogatory credit, you may still be eligible for a loan. USDA mortgage guarantee home loans do not have a minimum credit score but most banks have an overlay of a 620 FICO requirement.

The mortgage loan underwriter wants to know that you are willing to repay the loan. If your credit history shows late payments or even previous bankruptcy, you can still repair your credit report. It may take some effort but don't get discouraged. Your first step is to find out what your credit rating is.

Most late payments should usually be at least one year in the past, and your current history must show that you have met your credit obligations on-time and diligently for at least 12 months. If you have filed for previous bankruptcy, the discharge date will usually need to be at least two years ago. Since the bankruptcy, you must show that you re-established credit and have been diligent with credit and debt payments.

Income Eligibility

The USDA home loan guarantee program is designed to help low to moderate income families. There are income restrictions depending on the area you wish to purchase a home. Your loan underwriter will look at your gross income, income from any co-applicants, as well as any other adults who plan to live in the household. If your income exceeds the maximum limit, you may still receive certain adjustments to your gross income that will help you qualify.

In order to give a loan underwriter a clear picture of your income, you will need to submit copies of at least two years of W-2 or 1099 tax filings. If you are self-employed, two years of full tax returns may be necessary to determine a good average income. If you currently work for an employer, you should provide copies of at least one months of pay stubs. You may also click here for a checklist of items you may need for the processing of your home loan.

SOME Eligible Areas in Arizona:

Metro Areas:

Buckeye, AZ
Anthem, AZ
Queen Creek, AZ
Casa Grande, AZ
Sierra Vista, AZ
Tucson, AZ
Yuma City, AZ

County Areas:

Cochise County, AZ
Pima County, AZ
Pinal County, AZ
Santa Cruz County, AZ
Yuma, County, AZ

You can click here to determine if the property your purchasing could be financed with this program.

Before you begin the search for the home of your dreams contact the David Krushinsky Team at 602-695-7575 or david.krushinsky@wjbradley.com to see if you qualify for the USDA 100% financing home loan in Arizona.

* Because of the complexity with financing homes with swimming pools under the USDA home loan guidelines, we recommend that you avoid submitting offers on homes with swimming pools.

Creative Financing - Does It Still Exist??

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Sun, 27 Dec 2009 20:15:35 -0600

Does creative financing still exist or are there ways to purchase homes in Phoenix without traditional financing these days? If you're like me, you're probably saying, "No way". If so, read on.

Recently, I had the privilege of speaking with a real estate investor, by the name of Nick Johnson, that specializes in Short Sales and "Subject To" purchases. Nick and I got introduced through a mutual friend, Matt Rosen @entrepreneurHI, from Twitter. I learned a lot about Nick after talking with him for only an hour on the phone. I learned all about his high regard for his family, his unparalleled ethics and his business philosophy. Additionally, I also learned he is also the author of the eBook, "Subject2".

While most of us in the Phoenix area and beyond are all too accustomed with the term Short Sale, "Subject To" was not a practice in which I was all too familiar. Being the type of individual that prides myself on keeping current with what is available in today's marketplace, I immediately had to do some investigative research. I figured that I would share a little overview of what I discovered.

"Subject To", also referred to as "Subject 2" or "Sub2", is a form of creative financing in which the seller deeds the property to the buyer while keeping the existing mortgage note fully intact. The buyer, typically a real estate investor, simply makes the mortgage payments on the existing mortgage. These transactions can provide an array of benefits for both the buyers and sellers.

The buyers do not need to go through the headache (I know all about this) of getting qualified for a new mortgage note. There is no credit, income or asset verification required. The investors own the property, but do not assume the loan. This leaves personally liability on the sellers. Typically, the main advantage for buyers in these transactions is acquiring a property at a much lower interest rate than if they were to purchase the property outright.

It may seem unbelievable to most of us that a homeowner would deed over their property to another individual, but there are many reasons that sellers find this a great option. The primary reason that many sellers opt for Sub2 financing is to obtain debt relief. Some are facing foreclosure and unable to sell their property due to lack of equity. Owning a property that is "underwater" is a concept that many Arizona homeowners can relate all too well. Others simply want a fast sale. They may be moving, transferring jobs, getting married, divorced or a whole list of various scenarios.

Subject2 contracts should be implemented by a knowledgeable real estate professional. We've all witnessed the dangers of working with someone who claims to be an expert but has no more expertise than you or me. A sub2 contract is essentially the same as a standard state approved contract. The only difference is the 'sub2′ addendum states the terms of the existing loan.

In today's credit climate, we all know someone who may be struggling to qualify for a loan or continue making their monthly mortgage payments. I would encourage you, no matter what your preconceived ideas of traditional financing are, to have them contact me before it's too late. There are many times that I may not be able to help them but I can guide them in the right direction. Don't let them become just another statistic.

Can You Really Buy Homes for $100 Down in Phoenix? Meet the HUD Repo

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Fri, 25 Dec 2009 12:54:29 -0600

So you've decided that you want to buy a home in Phoenix, AZ. Besides the many advantages to living in the Valley, interest rates reaching all-time lows coupled with the recent plunge in home prices make Phoenix a very affordable and attractive option. Nowadays, it is actually cheaper to purchase a home in the Phoenix area than rent. The only down side to this scenario is that you're short on cash for a down payment. Unfortunately, you cannot get a gift from your family, you've already tapped out your 401K, you are not eligible for a VA loan, you make too much money to qualify for down payment assistance, and you have no desire to live in a rural area. So, the question is..... What can you do without a down payment??? Meet the qualifications for the $100 Down Payment HUD Home Program.

Let's take a trip back in time and describe why the availability to finance a home with the $100 Down Payment HUD Home Program arose. During the housing boom, many of the homes in Phoenix were financed with Conventional loans. Prior to the run-up in home prices, many first-time homebuyers used FHA loans to purchase housing. Once home prices started rising at unsustainable levels; homeowners began to refinance their FHA loans into Conventional loans to pull cash out, remove mortgage insurance, and lower their monthly obligations. Once these homes, now with Conventional financing, went into foreclosure, the banks began to sell their inventory at a discounted price. At the beginning of 2007, many of the new homebuyers were forced to use a FHA loan due to inability to finance their purchases with Conventional mortgages in Phoenix. These homebuyers were unknowingly still buying homes at inflated home prices. Sadly, many of these homes purchased in 2007 and 2008 with FHA loans are currently going into foreclosure. In most cases, the current values of these homes are significantly less than what is owed. The $100 Down Payment HUD Home Program is a result of a FHA borrower foreclosing and HUD repossessing the home that is now for sale.

So Who Qualifies?

Owner Occupancy	Primary Residence
Maximum Loan Amount	$346,250 for One-Family Home - Maricopa County
Loan Types	FHA Fixed Rate 30 year, FHA Fixed Rate 15 year, FHA 5/1 Adjustable Rate Mortgage
Income	Take 45% of your gross monthly income and subtract your monthly debts listed on your credit report. Your monthly payment shouldn't exceed the remaining balance after your debts are subtracted.
Reserves	There is no reserves requirement for the program
Property Types	Single Family Residences, Townhomes, Planned Unit Development homes, and Condos
Credit Score	Middle credit score of 620 or higherMinimum 24 months since discharge of any bankruptcies; 36 months since any foreclosure
Eligibility	All borrowers must have a valid social security number. Income borrowers must demonstrate 2 years of employment history, school transcripts are usually acceptable.
Closing Costs	Standard closing costs will apply but HUD will pay up to 3% of the sales price toward the buyers closing costs and prepaid items
Mortgage Insurance	FHA mortgage insurance is required on all loans

Now that you've been able to determine you may be able to qualify, here is an outline of the next steps you need to take.

Step 1 - Get pre-qualified for the $100 downpayment HUD Homes Program

Step 2 - Choose search area and type of home (i.e. North Phoenix - 3 bedroom, 2 bath with 1,500 square feet or more)

Step 3 - Create a login and password at our customized database to search homes

Step 4 - Contact us to match you with one of our Realtor partners that can assist you with viewing the homes you are intrested in. Please note, not all Realtors are trained and educated for HUD homes. It's very important to work with one of our preferred partners that has experience with HUD homes.

Step 5 - Submit an offer, get acceptance and go through the loan process.

Step 6 - Close on your purchase using an FHA-insured loan.

It can be a very simple process but the first step is to get pre-qualified.

If We Believe Foreclosure Is In Our Clients Best Interest, Should We Propose This As An Option?

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Thu, 03 Dec 2009 19:16:56 -0600

If we believe foreclosure is in our clients best interest, should we propose this as an option and recommend they seek legal counsel?

This morning I was thinking about the many clients I have who are underwater 50-70% in negative equity. The more I thought about the reality of those clients getting back to the break-even point, where their home is worth what they paid for it, the more I questioned what my advice to them should be. In Arizona, our foreclosure laws are extremely favored toward homeowners. I'm not going to pretend to be an expert and give you all the scenarios but, often times, the borrower can walk away without any recourse, or deficiency.

This brought me to think about the letters behind my name, CMPS. I am a Certified Mortgage Planning Specialist, and have been since January 2007. What is CMPS you ask? CMPS is a training, certification and ongoing membership program for financial professionals who provide mortgage and real estate equity advice. The CMPS Institute was formed as a joint effort by leaders in the mortgage and financial planning industries to raise professional standards among mortgage professionals and integrate sound financial planning advice into the mortgage process. Note the last sentence, sound financial planning advice. This leads me to my question.

What would your advice be to a borrower owes $220,000 on a home that's worth $70,000? Should they continue to pay their mortgage if they have suffered income loss but still have assets? What if they were advised by legal counsel there is no recourse if they walk away versus do a short sale, where there may be recourse? One could argue that bad economic advice would be to continue paying on an asset that could take more than 20 years to see the original purchase value versus fixing your credit after foreclosure, which could only take 3-5 years. The average appreciation rate for Arizona is 5.73025% for a 30 year period. The 5 and 10 year averages are the same, depending on the years you start and stop.

Lenders have loss-mitigation departments, which are staffed and have legal counsel. Why shouldn't a borrower mitigate their own losses too? Sometimes it's really just a business decision that one faces. Many business contracts have been broken by the politicians, the people who run these banks and the banks themselves. Is it immoral? Is it unethical? Are we outraged to hear about it?? What do you think?

Current FHA Loan Requirements for Phoenix Home Buyers

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Fri, 27 Nov 2009 16:10:45 -0600

Phoenix home buyers looking to take advantage of favorable interest rates, reduced home prices, and a low down payment should consider an FHA loan when buying a new home in which to live. The Federal Housing Administration (FHA) is a part of the U.S. Department of Housing and Urban Development (HUD). Since FHA loans are insured by the government, it's easier for a lender to offer you the option of a lower down payment. FHA home loans allow first time home buyers and current home owners to purchase a home with a 3.5% down payment. In order to qualify for a FHA loan, you will need to ask yourself the following questions......

READ THE REST OF THE ARTICLE HERE.................

Mortgage Revolution: Will You Be Left Behind???

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Wed, 25 Nov 2009 18:02:28 -0600

For many years I've attended Sales Mastery, Business Plan or some type of mortgage seminar to continue learning new, innovating ways to build my business. Many of the top loan officers in our company, and other companies, also attend these events. It wasn't uncommon for these seminars to have over 3,000 people in attendance. Unfortunately, there was no Sales Mastery or Business Plan to attend this year.

The Internet is an amazing tool that we can use to leverage our knowledge, relationships and advertising. Websites like Twitter, Facebook and Linked In have allowed me the opportunity to connect with some brilliant loan officers in other parts of the country. I read their blogs, their tweets and look at their status updates on Facebook. I do what they're doing to help grow my own business. I write about my own mistakes and also the success that my team has and post those articles in my blog. I put links on Twitter, Facebook and embed my articles in Linked In.

In the short time I've been doing this, I've built relationships with many of these people. Chris Brown helped me get my blog started last year. Brian Brady gave me a few tips on the phone about writing blogs, which has resulted in about 3-5 leads per week. I've also received many referrals from loan officers in different states and locally in Phoenix. I've even been contacted to write articles for print magazines, such as Scotsman Guide. All of this because of social media.

The game is changing. Gone are the days of advertising with flyers and magazines. Sending out 1,500 mailers to people "hoping" you get a 1% return on your efforts is a losing battle. The Washington Post just announced yesterday they are shutting down all of their offices around the country except the one in Washington D.C. If today's loan officer doesn't embrace the new rules within our own business, we will be left behind just like the Post. During the last 10 years, the media has taught everyone they must get prequalified before even looking at homes. Today's consumer is turning more toward the Internet and we must learn how to show up in their search results on the first page of Google.

I'm using this as an invite to learn a new strategy, implementation and execution from the best of the best. The event is called Mortgage Revolution and is dubbed "a grass-roots movement created by mortgage professionals for mortgage professionals". I am committed to attending this event January 10-12, 2010 at the Cobb Galleria in Atlanta, GA. Early-Bird special is $149 until Dec. 1, 2009, then the regular price thereafter is $199. This is a non-profit event and the goal is to raise $250K for charity so that the media has something positive to say about our industry. To find out more visit their website or shoot me an email. I hope to see you there.

FREE CONTINUING EDUCATION CLASSES FOR ARIZONA REALTORS

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Thu, 19 Nov 2009 15:55:24 -0600

FREE CONTINUING EDUCATION CLASSES FOR ARIZONA REALTORS

You are invited to attend the continuing education seminar " Answers To Tough Questions About Credit In Today's Market" on Wednesday, January 13th from 2:00 pm - 5:00 pm. This event is FREE and provides (3) three Accredited General Hours towards your continuing education requirements.

David Krushinsky, a Certified Mortgage Planning Specialist, 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 by a mortgage professional.

The Seminar will be held at the Foothills Recreation & Aquatic Center 5600 West Union Hills Drive, Glendale, AZ 85308 on Wednesday, January 13th from 2:00pm - 5:00pm.

Please RSVP to reserve your seat. For any questions or to RSVP, please contact David Krushinsky at 623-594-7600 or email david.krushinsky@wjbradley.com

Hope to see you there!

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

Arizona Going Green Mortgages & Asbestos Prevention

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Fri, 20 Nov 2009 18:27:52 -0600

Located in the Southwestern part of the United States, Arizona is a state known for its wonderful weather, beautiful scenery and national parks. It is one of the ideal spots for active lifestyles and is easy to see why many potential home buyers are choosing Arizona as their destination of choice.

The path to home ownership is an exciting time for you and your family, but it is one that may bring additional responsibilities into your life. Having the assistance of an honest and experienced Arizona mortgage professional can make all the difference during this process.

Homes that are newly purchased may require additional remodeling or repairs. The FHA 203k loan may be the perfect opportunity to make the necessary repairs for safety and cosmetic upgrades. There are also other options for VA and FHA loans for "Going Green" on your home mortgage. Building or remodeling your home with eco-friendly materials can lower utility and water bills, achieve federal tax credits, higher real estate value, purer air quality, reduced waste sent to landfills and conservation of natural resources.

What is Asbestos?

Asbestos is the name given for a group of fibrous minerals that were mined for their qualities as fire resistant, insulation and high durability. Asbestos may still appear in roof shingles, dry wall, attic insulation, popcorn ceilings, joint compounds and electrical wires. It's flame resistant and durable qualities made it an ideal choice for many industries. Homes built before 1980 may still contain asbestosmaterials. There are now many eco-sustainable options that make the use of asbestos obsolete.

Tips & Important Information on Asbestos

If any asbestos is located in your home, the best thing to do is leave it un-disturbed until a home inspector can determine the best course of action. In many situations, the best action is no action. Asbestos that is disturbed or damaged due to age is known as "friable" asbestos. This is a concern because its toxic fibers can easily circulate and become inhaled.

Although asbestos exposure does not always lead a related illness, long term inhalation of its fibers can cause a rare but severe ailment known as malignant mesothelioma. Asbestos-related illnesses may not appear until 20 to 50 years after exposure, which makes mesothelioma diagnosis even more difficult.

The removal of asbestos must be performed by licensed abatement contractors who are trained in handling dangerous materials. They work under state and federal regulations to ensure no health concerns arise from improper removal.

Arizona "Going Green"

The Arizona Department of Environmental Quality is committed to protecting the public from asbestos-containing materials by educating and assisting with asbestos removal, transport and disposal. The removal of hazardous substances must be performed by professional abatement contractors who are trained in these matters. Eco-friendly options must be considered when the removal is complete.

Implementing green methods of building can have positive environmental, health and economic benefits. These include: Conservation of natural resources, enhance air quality, protect eco systems, energy sustainability, increase property value, improve quality of life, improvement of pulmonary and cardiac health, Reduction of waste.

Environmentally safe alternatives to asbestos include the use of cotton fiber, lycnene and cellulose. There is no need for any products used in construction to be made from asbestos, yet over 3,000 work and home-based materials still contain this toxin.

With growing education and technology in green sustainable energy and building resources, the state of Arizona has taken actions to ensure safety and health is a top priority in this great state. If you are looking for more information on asbestos or mesothelioma please visit www.asbestos.com.

If you're considering remodeling or rehabilitating your home, the FHA 203k program may fit your needs. If you want more information on the FHA 203k or other rehabilitation loans please contact The Krushinsky Team at 602.695.7575 or david.krushinsky@wjbradley.com.

Should You Tell Clients To Dispute Items On Their Credit Report During The Loan Process?

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Thu, 12 Nov 2009 16:50:33 -0600

Should you tell your clients to dispute items on their credit report during the loan process? The most common response is typically, "Sure, why not?". If you are advising your clients to dispute credit items, you may be in for a big surprise.

A few months ago, we prequalified a borrower looking to purchase an investment property. We knew the transaction wasn't going to be easy, but luckily she had come to us before she began looking for a home. After pulling her credit report, we discovered her FICO score was low; however, it still fell within the acceptable range to qualify for conventional financing. After analyzing the credit accounts, it was apparent that a collection account placed on her credit report by a fitness club was driving down her FICO score. We reviewed the credit report with the borrower and she did not feel responsible for this collection account. Our recommendation was to dispute the account with the credit bureaus, which she did.

Fast forward two months. She finds the perfect property and her contract is accepted. We updated all of her information and sent the file to be underwritten. The underwriter "suspends" the loan and conditions for the following inforamtion: the disputed account on the credit report must not be shown in dispute; or provide documentation the account does not belong to the borrower; or provide Freddie Mac Loan Prospector (LP) Automated Underwriting Findings. We cross-reference the guidelines and sure enough, the underwriter is correct. Here is an excerpt from our underwriting guidelines, which refers to Fannie Mae's Desktop Underwriting (DU) policy:

DU findings may often times note different accounts reported as Disputed. These accounts are not considered in the credit risk assessment provided in the DU feedback and as such, need to be dealt with exactly as noted in the DU findings.

The lender must verify the accuracy of the trade line(s) by determining if it belongs to the borrower and by confirming the accuracy of the payment history.
If the trade line does not belong to the borrower, or the reported payment history is inaccurate, no further action is necessary.
If the trade line does belong to the borrower and the reported payment history is accurate, it must be taken into consideration in the credit risk assessment. A new credit report must be obtained with the trade line no longer reported as disputed and resubmit the loan case file to DU with the new credit report.
If the disputed trade line is a mortgage that was past due by two or more payments in the last 12 months, or a foreclosure that has been filed within the last 5 years, the loan is ineligible.

Ok, no big deal.... we'll run the loan through Freddie Mac Loan Prospector and obtain LP findings. The problem is that sometimes LP does not accept loans that DU will accept and vice versa. LP would not "accept" this loan. So we immediately contact the borrower to see if she has received any updates from the credit bureaus since disputing this item. Big surprise, she has not. We all know how long this process can take. We explain the situation to her and she unhappily decides to pay the collection company in order to get the loan completed. We order a re-score from the credit company with the proof provided to us that the collection is paid in full in order to get the account out of dispute status. We're on our way.

Fast forward 5 business days. Everyone is eagerly anticipating receipt of the re-score, as this is our last condition before we can obtain a full approval and order closing docs. I forgot to mention that this transaction was an "approved" short sale and we only had 17 days to close. We receive an update that the credit re-score has been completed. We pull a new credit report and the account is still showing in dispute????!!?!? Apparently, TransUnion called the collection company, but no one answered the phone. The report was never updated by TransUnion. Meanwhile, the clock is ticking and everyone is trying to find out if we're going to be able to close before the short sale approval expires. We have no choice but to order a new re-score. We send in our request and wait another 5 days business days. The short sale approval has now expired and we're still two weeks away from closing.

Finally, we receive the second re-score back and everything looks good. We send all of the updated information into underwriting and the file gets cleared for closing. Thankfully, the short sale approval gets extended. The borrower signs papers and every one lives happily ever after. The moral of the story is when you're purchasing or refinancing your home; be careful when disputing tradelines on your credit report, even if they aren't your accounts. If you have additional questions, contact David Krushinsky at 602-695-7575 or david.krushinsky@wjbradley.com.

So What's My Phoenix Home Loan Rate?

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Tue, 10 Nov 2009 18:45:46 -0600

"So what's my Phoenix home loan rate"? This is the question asked to loan originators everyday from our clients and prospects. There is no simple answer and it seems to be getting more complex as the mortgage industry moves toward more risk-based pricing. Risk-based pricing allows adjustments to par pricing for risk factors such as; FICO scores, loan-to-value percentages, property type (SFR, Condo, 2-4 Units), occupancy (Primary, Vacation or Investment) and mortgage type (Interest Only, Adjustable Rate etc).

Let's start off with the basic mechanics of fixed mortgage interest rates. Interest rates are primarily based upon the pricing of Mortgage Backed Securities ("MBS" or "Bonds") issued from Fannie Mae ("FNMA"), Freddie Mac ("FHMLC") and Ginnie Mae ("GNMA"). Think of a Bonds' sales price similar to that of a Stock, it trades up and down during the course of a day. At the time of writing this article, the FNMA coupon we are tracking is selling for $101.03. This is down 22 basis points from the previous day's closing price of $100.81. In simple terms, the consumer would have to pay an additional .22% of their loan amount to have the same rate today that they could have locked in the previous day.

"So... what does all this mean?"

In our example, the client's interest rate could vary from 4.50% - 5.25%. The mortgage interest rate will depend on how the customer would like to set up their mortgage loan with regard to paying either higher or lower upfront fees. Clients locking in a rate should consider how long they intend to have this mortgage loan before considering the fees associated with obtaining any rate. The shorter amount of time you will have the loan, the more it makes sense to pay lower fees and have a higher interest rate. The longer your time horizon for keeping the loan, the more it makes sense to pay higher upfront fees, also known as buying down the interest rate.

A client locking in a rate of 4.50% (5.597% APR) today on a 30-year fixed FHA loan should plan on paying all the customary fees with two discount points. Customary fees would include appraisal, credit report, processing fee, underwriting fee, origination fee, title fees, and recording fees. That same client could lock in 4.75% (5.747% APR) with 1 discount point, 5.00% (5.896% APR) with no discount points and 5.25% (6.044% APR) without any discount points or origination fee. An origination and/or discount point is typically 1% of your loan amount.

With so many rates available on a 30-year fixed mortgage, how can a borrower get the best rate?

First, ask the lender to provide you with a total overall cost analysis. This should illustrate the proposed savings you will have on the loan options available to you both on a monthly and long-term basis. This analysis should also include total payments, total interest paid, total closing costs and points and balance remaining at a given point in time. One of the most important metrics to consider is how long you plan on keeping this loan on the home you purchase or refinance when selecting the right mortgage plan.

Second, we recommend working with a professional who watches, articulates and understands the interest rate markets. If you're a consumer, it's important to understand that interest rates can change daily, even hourly. So, if you are comparing lender rates and fees - this is a moving target on an hourly basis. If you are comparing two quotes from different lenders, you may be comparing apples to oranges. The only way to get a truly accurate comparison is to have the quotes prepared on the exact same day, at the exact same time, with the exact same terms and conditions. You also must know the length of the lock term (i.e. 15 day, 30 day, 45 day etc.) you are looking to secure, since longer rate locks typically carry slightly higher interest rates.

We provide a daily recommendation to our client's advising them to float or lock their home mortgage interest rate. In this update, we list the current pricing of the FNMA 30-Year Bond and the previous closing price. We identify the key current market updates and the daily economic news releases that are influencing interest rates. We also provide an illustrative picture with our written recommendation, which makes it easily understood.

In conclusion, we feel that having access to valuable information regarding the total overall long-term cost, along with mortgage options that best fit their needs, coupled with market knowledge will allow you to obtain the overall lowest cost mortgage with the best loan rate available.

For more information on rates, fees and your personal mortgage options, contact The Krushinsky Team at 602-695-7575 or email david.krushinsky@wjbradley.com.

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

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Tue, 11 Aug 2009 12:58:59 -0500

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.

You're Buying A House In Scottsdale, AZ With A Shared Well Connected To More Than 4 Homes??

David Krushinsky (WJ Bradley Mortgage Capital Corp. Phoenix, AZ BKBR-0115165) — Mon, 26 Oct 2009 15:43:47 -0500

You've been pre-qualified for a 3.5% down-payment, FHA home loan, to buy the house of your dreams in Scottsdale, Arizona. You and your Realtor have searched for months and finally narrowed it down to one home. It's a short-sale located in beautiful Scottsdale, AZ. This is the ideal location; not too far from your office, great schools for the kids, plus terrific dining and night-life for you and your wife.

Your Realtor is very sharp and has well over twelve years of experience selling high-end homes in Scottsdale. You make it through the inspection period with no items needing repair. Your Realtor gives your lender the go ahead to order the appraisal. The FHA appraiser returns the completed appraisal with a value equal to the sales price. You're feeling terrific because you've just locked in an incredibly low interest rate of 4.875%, which is fixed for 30 years, on an FHA home loan.

Everything seems to be moving along smoothly, until you get a call from your Loan Officer. She sounds concerned and you immediately begin to panic. She tells you that the lender has turned down your loan because the house has a shared well for water, which is connected to more than four homes. You don't understand why your loan was declined? Your Realtor doesn't understand either; he has sold many homes in this area without a problem, which were also financed.

The reason some lenders cannot finance a home with a shared well connected to more than 4 homes, is that it doesn't fall within the standard FHA loan guidelines. Prior to 2007, many of the homes in Scottsdale were financed with conventional financing. Therefore, very few Realtors and Loan Officers ever experienced a problem with this specific circumstance. Self-admitted, many industry professionals need to educate and enhance their knowledge of FHA guidelines. It is possible for this home to be financed under FHA guidelines; however, it will require some additional documentation, more work from everyone involved, and maybe even a few sleepless nights. Hopefully, you are working with educated professionals that will be able to alleviate many of those restless nights and extra stress!

This was an actual scenario we experienced with one of our referrals. Luckily, we were able to fund this client's loan after he received a loan denial from another lender. Although in order for this loan to work, there are a few specific requirements that need to be met. First, the water must flow through a valve dwelling service line, so that water may be shut off to each served dwelling without interrupting service to other properties. Secondly, the well must be connected directly to the pumping energy source (not a dwelling); and the energy being used for pumping must be separately metered. Finally, the well must be covered by an acceptable well agreement through one of the five documents/entities listed below:

Control by Public Utility Commission
Trust Deed
Third Party Beneficiary Contract
Property Owners' Association
Franchises from Governmental Authority

The following identifies the additional documentation required in order to close this loan for our client. These items do carry a few additional fees.

Documentation provided by a Septic Inspector stating that the well sits a minimum of 50 feet from the septic tank, 100 feet from the drain and 10 feet from the property line.
Certified pumping test
Potable water certification

Special thanks to Beeman Pump Company and A-American Septic Service are in order for making this transaction successful.

If you're currently considering purchasing a home with a shared well connection to more than 4 homes and need some assistance, please contact David Krushinsky at 602-695-7575 or david.krushinsky@wjbradley.com.