Rapid Rescore Helps With Mortgage

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Football and Arizona Home Loan approval are games of inches.  Tough credit guidelines require home loan applicants manicure their credit profile for loan approval and lowest interest rate.  Knowing how credit scores work helps seasoned home loan officers turn mortgage denials into mortgage approvals.

All too often, minute credit score shortages cost consumers big time.  Missing a minimum required score keeps potential home buyers from home ownership.  In other cases,  consumers qualify but due to a lower score have higher interest rates and mortgage payments.   Either way, lower credit score costs a lot!   For example, assume the following:

  • 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 proportionate balances on revolving accounts are 30% of a credit score is powerful.  Using this knowledge possibly solves our clients dilemma!  If not, an experienced loan officer knows how and where to look for other opportunities to improve credit.

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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