Give your credit scores a boost to get a mortgage loan by having errors or omissions corrected immediately through rapid re-scoring.
Despite mortgage interest rates being at an all time low, home buyers are finding it difficult to get approved for a mortgage loan and home owners cannot get approved for refinancing.
It would seem logical a 30-year fixed-rate loan, below 5%, would lure a stampede of home buyers, as well as home owners to take advantage of mortgage rates. But lenders and banks have made underwriting standards more stringent since the housing market went bust.
Consumer credit scores are on the decline as Fico reported in July 2010, that more than 25% of consumers have credit scores of 599 or below which most lenders find unacceptable to qualify for a mortgage loan.
What Fico does not state is that many consumer credit files contain errors and mistakes. That’s why it’s so important to monitor your FICO score on at least a monthly basis, if not more. Rapid rescoring can correct errors and negative information in your credit report in as little as 72 hours.
What is Rapid Rescoring
Rapid Rescore is a service offered by independent credit reporting firms directly to a lender, loan officer or mortgage broker. Credit scores can be re-analyzed and quickly corrected for the purposes of obtaining a residential or commercial real estate loan.
Rapid rescoring accelerates the credit dispute process by rapidly correcting negative information and increasing credit scores immediately so consumers can qualify for a mortgage loan.
What can rapid rescoring do for credit scores
Negative, inaccurate and outdated information appearing on your credit report and lowering your credit score can be corrected and removed. Accounts can be deleted from your credit file.
The status of an account can be changed from “30 days late” to “paid as agreed.” Collection accounts can be quickly paid off and deleted from your credit report.
You can even pay down the balance on a debt, making your credit usage to available credit ratio lower, and have that information reflected immediately. It is an invaluable tool that lenders, loan officers and mortgage brokers have access to and can make a significant difference in the process of qualifying for a loan.
Rapid rescoring immediately connects your credit information, your creditors and the three major credit bureaus together in order to get poblems fixed immediately, something the credit dispute process cannot do in such a short time.
The time and cost of rapid rescoring
Rapid rescoring is a fee-based service and varies depending on the company. The average cost is $30.00 per tradeline or account, per borrower. Whatever the costs, rapid rescoring is well worth the money in order to avoid higher interest rates or flat out denial of credit.
New information can be posted in as little as 3 to 5 days and your credit scores will improve immediately. You can request rapid rescoring from your loan officer during new home mortgage loans or refinance mortgage loans.
Generally, you must have documented proof to correct errors or omissions. Rapid rescoring will not help if you just don’t pay your debts on time or at all.
But, if you are finding it challenging to qualify for a mortgage and have documented proof to correct errors or cash to pay down high credit balances, ask your lender about rapid rescoring, it could make the difference.
