Residential Plus, LLC.

Whether you're planning to buy:

Your first home...

An investment property...

A commercial Property...

   or build a home...

There are programs available!  You don't have to have perfect credit and

you don't have to have 10's of thousands saved up!

Whatever your purchase needs may be or if you need cash out of your resi-

dential or commercial property, contact me and we'll see exactly what

options are available to you!

Sherayn Allen - Mortgage Consultant 

602-790-5193 

sallen@azrp.com

The Current Mortgage Market

Well it's a tough world out there, and the subprime lenders are feeling it to date 62 subprime lenders have

completely shut down operations.   Well those existing subprime lenders most of whom are in it for the

long haul, and didn't just start up their company during the recent boom years... are getting a bit more

stringent on their approvals, not impossible like the old days just more cautious.  And who can blame them

with the Fed coming down so hard.  Most of this is due to new regulations brought on by the Fed aimed

specifically at the subprime market, in reality these are the anwers to predatory lending that has taken un-

knowing purchasers by storm, so many people were tricked into getting loans that did not benefit them

 or that were impossible to keep up, only to line some loan officers' or lending istitutions' pockets...and don't

 you know that when the reigns are tightened these lenders have dropped out...coincidentally most before

 the investigations begin!  What does this mean to you?  Not too much and not to worry, it comes down

to finding a good mortgage representative who will be sensitive to your specific needs and wants as well

as have the knowledge of how to get your loan approved without any fraudulence...but  the financing programs

are still out there! And rates are still great historically!

 Top 10 Credit Do's and Don'ts (During the Loan Process )                                                                                                                                                                                              

1.           DON’T APPLY FOR NEW CREDIT OF ANY KIND.  Including those “You have been pre-

approved” credit card invitations that you receive in the mail.  Every time that you have your credit pulled

by a potential creditor or lender, you lose points from your credit score immediately.  Depending on the

elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.

 2.           DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process.  Paying

collections will decrease the credit score immediately due to the date of last activity becoming recent.  If

you want to pay off old accounts, do it through escrow, and make sure that 1) you validate that the debt is

yours, and 2) that the creditor agrees to give you a letter of deletion.

3.           DON’T CLOSE CREDIT CARD ACCOUNTS.  If you close a credit card account it will appear

to the FICO that your debt ratio has gone up.  Also, closing a card will affect other factors in the score such as

length of credit history.  If you have to close a credit card account, do it after closing, and make sure it is a more

recent account.

4.           DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. 

This is the fastest way to bring your score down 50-100 points immediately.  Try to keep your credit card

balances below 30% of their available limit at all times during the loan process.  If you decide to pay down

balances, do it across the board.  Meaning, make an extra payment on all of your cards at the same time. 

 5.           DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS.  It seems like

it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears

that you are maxed out on that card, and the system will penalize you as mentioned above in 4.  If you want

to save money on credit card interest rates, wait until after closing.

 6.           DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY

THE SCORING SYSTEM.  This would include adding new accounts, co-signing on a loan, changing

your name or address with the bureaus.  The less activity on your reports during the loan process, the better.

 7.           DO JOIN A CREDIT WATCH PROGRAM.  If you join a credit watch program, you can check

your reports weekly, or even daily depending on the program you select.  (When you pull your own reports,

you don’t get dinged for a hard inquiry.)  This way, if something does show up on your reports that has caused

your score to go down, you’ll know it immediately, and you may be able to take care of the problem before closing. 

8.           DO STAY CURRENT ON EXISTINGING ACCOUNTS.  Like your mortgage and

car payments. One 30-day late can cost you anywhere from 30-75.

 9.           DO CONTINUE TO USE YOUR CREDIT AS NORMAL.  Red Flags are raised easily

with the scoring system.  If it appears that you are changing your pattern, it will raise a red flag, and your

score could go down.

10.       DO CALL YOUR BROKER if you receive something in the mail from a creditor or collection agency

that you believe may affect your score during the loan process.  Your broker may be able to supply you

with the resources you need to stop any derogatory reporting to the bureaus.

The following links are designed to help you with your upcoming home financing.

Please call or email with any questions or concerns.