AZ Harp 2.0 & Your Credit Score

AZ Harp 2.0 & Your Credit Score

AZ Harp 2.0 and your credit score is explained here.  According to AZ Harp 2.0 guidelines, your credit score can’t count against.  However, the items on you credit report do count against you.  On a AZ Harp 2.0 Fannie Mae loan there are 5 levels of approval:

• Approve/Eligible
• Expanded Approval Level 1
• Expanded Approval Level 2
• Expanded Approval Level 3
• Expanded Approval Level 4

If you receive a Level 4 approval on your AZ Harp 2.0 loan, your loan will be automatically declined.

Not all lenders are willing to lend to borrowers with an AZ Harp 2.0 Expanded Approval Levels.  Some will not lend at all.  Others will lend for AZ Harp 2.0 Approve/Eligible and AZ Harp 2.0  Expanded Approval Level 1. There are only a couple of banks that will lend regardless of your loan approval.  Of those banks, some actually charge you the customer a higher fee according to our Approval Level or as the banks like to call it your risk level.

So what can you do to obtain an AZ Harp 2.0  Approve/Eligible or an AZ Harp 2.0 Expanded Approval Level 1?  First of all if you have any collection items pay them off.  Then don’t let anyone pull your credit until these items have been reported to the bureaus.

Secondly, pay off any judgments  this will raise your credit score.

Thirdly, if  you have been recently late on a credit card, if you don’t want to pay a higher rate or fee than wait to apply for a loan until after you been paying your bills on time.

OTHER WAYS TO INCREASE YOUR AZ HARP 2.0 LOAN APPROVAL LEVEL:

1.  Pay down or pay off any balances on your credit report.

2.  List all assets that you currently own.  I know what you are thinking.   I thought it didn’t matter?  Well, that’s what the banks originally told us.  However, at our company we run our own automated findings.  I personally have seen loans go from an Expanded Level 3 to an Expanded  Level 1 just by listing assets.

Make sure you list all checking, savings, money market, cd’s, retirement accounts, stocks, bonds, etc.  The more you list the bettter off you will  be when you have a lower fico score, higher debt to income, and a high loan to value ratio.

If your loan to value ratio is over 125% expect a very long approval process.  Bank turntimes are very slow but well worth the wait.

If you still have Harp 2.0 AZ questions, give us a call.  We’d be happy to assist.

For more information go to our home page at www.azwm.com/harp-2-0-update.html and click on contact us.