Rapid re-scoring
For most people, applying for a mortgage is a stressful process. You are attempting to borrow a large some of money so you want to make sure you can qualify for the lowest rates while still getting the best terms.
While most people are worried about the finances involved with being accepted for a mortgage, many others find out that they will not even qualify and thus will not be able to purchase the property. If you are denied, you will have to correct your credit problems which could take months to take affect, even if the negatives on your credit report are erroneous.
The article, “How To Increase Credit Scores in 48 Hours,” released on themortgagewire.com, explains how there is a way around re-applying for mortgage after denial.
“Credit bureaus say it’s one of the most useful trends to hit the mortgage market in years. Yet most home loan applicants--and some mortgage brokers and realty agents--still don’t know about it.”
“Rapid re-scoring,” as it’s called, can prove to save your mortgage or home for anyone whose credit scores are low due to misinformation or bad advice on existing credit lines.
So, what do you do if you apply for a mortgage and your lender tells you that your credit score is too low to be accepted? If you were expecting a low score due to mishandled finances and defaulted payments, then you will have to slowly re-establish credit by making timely payments or file for bankruptcy.
However, if you discover that you credit score is low due to faulty information, you can try to get your files re-scored, instead of trying to fix the report (which could take months) and re-apply which could take even longer and rates and terms could change.
You will probably not be offered this re-scoring option, so you will have to ask your lender.
“They can get their files corrected and re-scored within 48 to 72 hours. Though participating local credit reporting agencies cannot advertise their re-scoring services to the general public, they often let their mortgage lending clients know about them.”
How it works:
“The re-scoring agencies negotiate special contracts with the three repositories, allowing them to obtain ‘universal data correction’ forms from creditors--often within a day or two--and then sending them directly to repositories for immediate correction of the consumer’s file. The staff-intensive service costs money. Some lenders are charged $30 per trade line, per bureau, per borrower.”
Rapid re-scoring, which will take up to 72 hours, usually raises a borrower’s credit score by 50 points or higher depending on how extensive the errors are.
This will directly lead you to save time and money on interest rates. The lower your score equates to a lower rate.
“Don’t confuse rapid re-scoring with ‘credit repair.’ Re-scoring is a legitimate service expressly sanctioned by the credit repositories through special contracts with select credit reporting agencies. ‘Credit repair,’ by contrast, often involves illegal attempts to dupe the repositories and lenders alike.”
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