Rapid re-scoring
By Justin
Hunter
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.”