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Shalizi Real Estate
The Santa Fe Association of Realtors' June statistics are in. Click here to see them.
 
 
 
 
 
 

Mortgage Rates Hit an All-Time Low.
 
Read more from Realtor Magazine.
 
 
 
 

Loan Quality Initiative
brought to you by
Frank Sena
Southwest Home Loans

Phone: (505)474-6864
swhomeloans@yahoo.com

Fannie Mae's new "Loan Quality Initiative" went into effect on June 1, 2010Öwhich means that loans may be at risk for some buyers. Here's what you need to know Ė and what you need to do Ė to keep your deals from blowing up right before closing.

Undisclosed debt is a leading cause of mortgage fraud and early payment loan defaults. That's why, as of June 1, lenders who originate mortgages that will be sold to Fannie Mae are being advised to pull a second credit report on many transactions just before the loan closes. By reviewing a second credit report, lenders can find out whether
other creditors have recently requested information about the mortgage applicant. This can uncover situations in which an applicant might be trying to obtain several loans (from multiple, unwitting lenders) on the same property. It can also reveal less insidious, but still relevant conditions, such as a change in the applicant's debt-to-income levels.

If the second credit report includes any negative changes, the result could be a higher interest rate and/or fees, or even worse, the loan could be denied altogether!

Don't let this happen to you. Please read "Top Ten Credit Don'ts During the Loan Proces" so you will know exactly what you need to do (and not do) when you are in the process of purchasing a home.

Please don't hesitate to contact Frank Sena if he can answer any questions at all for you about this important news from Fannie Mae
.
 
THE TOP 10 CREDIT DONíTS
 
1. DONíT 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.
 
2. DONíT APPLY FOR NEW CREDIT OF ANY KIND. Including those ďYou have been pre-approvedĒ credit card invitations that you receive in the mail or online. 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 one to 20 points for one hard inquiry.
 
3. DONíT PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. Unless you can negotiate a
delete letter, 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 Ė at closing.
 
4. DONíT MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to
bring your scores 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, pay balances to bring your balance to limit ratio to the same level on each card (i.e. all to
30% of the limit, or all to 40% etc.).
 
5. DONíT 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. DONíT CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account, you will lose available credit,
and 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.
 
7. DONíT PAY LATE. Stay current on existing accounts. Under the new FICO scoring model, one 30-day late
can cost you anywhere from 50-100 points, and points lost for late pays take several months if not years to
recover.
 
8. DONíT ALLOW ANY ACCOUNTS TO RUN PAST DUE --EVEN 1 DAY! Most cards offer a grace period,
however, what they donít tell you is that once the due date passes, that account will show a past due amount
on your credit report. Past due balances can also drop scores by 50+ points.
 
9. DONíT DISPUTE ANYTHING ON YOUR CREDIT REPORT once the loan process has started. When you
send a letter of dispute to the credit reporting agencies, a note is put onto your credit report, and when the
underwriter notices items in dispute, in many instances, they will not process the loan until the note is removed
and new credit scores are pulled. Why? Because in some instances credit scoring software will not consider  items in dispute in the credit score - giving false data to the lender.
 
10 .DONíT LOSE CONTACT WITH YOUR MORTGAGE & REAL ESTATE PROFESSIONALS. If you have a
question about whether or not you should take a specific action that you believe may affect your credit reports
or scores during the loan process, your mortgage or real estate professional may be able to supply you with
the resources you need.
 
The President of Credit Resource Corporation, Linda Ferrari is a leading nationwide expert in the credit
reporting and scoring industry. Her expertise and knowledge of the credit industry is of the highest level,
supported by more than 17,000 cases to date. Linda is a regular guest on San Diego's 1700AM Bizradio
show and she has also appeared on Fox Business News 97.1 KLSX  Making Money Talking Dollars Making
Sense and Vegas Investors Edge.
 
 

National Public Radio had this article recently on the home buyers market.
 
 

There are zillions of things to do in Santa Fe this summer. Check out this calendar for all the summer events.
Thanks to the Santa Fe Convention and Visitors Bureau for such a fantastic resource.
 
 
 
 
 

Recently the New Mexican ran an article about the fragility of the US houseing market. This was taken from an article in the Washington Post. Read that article here.
 
 
 
 
 
Baro Shalizi
Qualifying Broker
ABR, CIPS, CRS, e-PRO, GREEN, GRI
shalizi@aol.com
Cell: 505-670-8431
Office: 505-474-4203
Gail Samota
Associate Broker
e-PRO, GREEN, RSPS, TRC
mailto:gail@gailsamota.com
Cell: 505-603-5450
Office: 505-474-4203
Shalizi Real Estate | 2199 Candelero Street | Santa Fe, NM 87505
(505) 474 4203 | www.ShaliziRealEstate.com


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