Rapid Rescore Helps With Mortgage

AZ Mortgage Rapid Rescore

Getting approved for an Arizona Mortgage can sometimes become a game of inches.  Tougher credit guidelines often require that a home loan applicant’s Phoenix Mortgage Company strategically manicure their credit report and credit score to obtain loan approval or receive the best possible interest rate.  Armed with the knowledge of how credit scores are generated and what types of adjustments can positively impact a borrower’s score, a home loan officer can help turn a mortgage denial into a mortgage approval and can often help a client receive the best AZ mortgage rate possible.

Let’s take a look at an example that happens very frequently in the mortgage world.   A borrower applies for a mortgage and just misses the required credit score by 5 points.  The loan type this person is applying for calls for a 600 minimum credit score and our pretend client has a 595.  Let’s assume this fictitious buyer also has a credit card that has a high balance/high limit  of $500 and a current balance of $500 – 100% maxed out.  Knowing that proportionate balances on revolving accounts factor into 30% of an individuals credit score, a loan officer would advise that this person pay that card down.  This would likely provide the fuel needed to propel this Arizona mortgage applicants up above the 600 threshold needed to move forward with loan approval.

Who Has Time to Wait For Experian, Equifax, or TransUnion?

Once our borrower pays down their credit card it can take up to 30 days or more for the 3 major credit bureaus to reflect the payment and for our client to receive an updated/improved credit score.   When someone is on the hunt for a new home or looking to refinance their mortgage into a lower AZ mortgage rate 30 + days can feel like an eternity.  Great news!  There is a faster (much much faster) way to have the 3 major credit bureaus update their data and your credit scores.  It is called a RAPID RESCORE.

In order to execute a Rapid Rescore, your mortgage lender simply submits documentation verifying what they are trying to have updated (in our example above they would show proof that their credit card balance has been paid down) over to the three major credit bureaus.  As a result, within just 24 to 72 hours all 3 credit bureaus will update the data on your credit report AND will update your credit scores relative to the new and improved data.

This rapid form of credit improvement  – a RAPID RESCORE –  is a very effective and important tool on our AZ Mortgage lender tool belt.  Please call or email me today if you have questions on how a Rapid Rescore can help you.

By Jeremy House
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