This Article Is About Using Rapid Rescore To Raise Credit Scores And Lower DTI
Loan officers can help mortgage borrowers to raise their credit scores and lower debt to income ratios to qualify for mortgages with a rapid rescore. If a consumer pays down a credit card balance, a lower credit card balance will normally spike their credit scores. However, it takes 30 to 45 days to update the credit tradeline on all three credit bureaus. Lenders can expedite an updated credit tradeline in three to five days by rapid rescoring the borrower.
How Rapid Rescoring Expedites Borrowers Updating Their Credit Profiles
Mortgage companies can rapid expedite updated credit information of borrowers in three to five business days with rapid rescoring. It normally takes 30 to 45 days for consumer credit information to get updated on consumer credit reports. This can become a problem when a borrower is in a hurry to qualify for a mortgage. Below is how rapid rescoring works and how it can help expedite update borrower’s credit profile:
- Borrowers with high credit card balances have low credit scores
- However, paying down the credit card balances to 10% credit utilization ratios will skyrocket credit scores
- For borrowers to get an updated credit report with higher credit scores, it takes 30 to 45 days
- This long timeframe may be too long for some home buyers
- This is when a rapid rescore can expedite the process
- Loan officers can use rapid rescore to raise credit scores and lower debt to income ratios is very common among lenders
- Rapid rescore can update credit tradelines as fast as 3 to 5 business days.
In this blog, we will cover rapid rescore to qualify for mortgages.
Importance Of Credit Scores
Consumer credit scores are one of the most important factors when qualifying for a mortgage. Lenders have minimum credit score requirements. To qualify for a 3.5% down payment FHA loans, borrowers will need to meet at least a 580 credit score requirement. Borrowers with under 580 credit scores need a 10% down payment to qualify for FHA Loans. If a home buyer with a 560 credit score does not have a 10% down payment but has a 3.5% down payment, they will not qualify for an FHA Loan unless they can raise their credit scores 20 points to 580. This is when rapid rescore by lenders can help.
Using Rapid Rescore To Expedite Updating Credit Information On Credit Bureaus
Most experienced loan officers have a FICO Simulator which is a credit score simulator system. Loan officers will upload consumer credit reports to the simulator and the system will give an analysis of what the borrower needs to do for a credit score improvement. The FICO Simulator will state how much to pay down on a credit card account in order to get potential credit score improvement. Once the borrower gets confirmation that he or she paid down credit card accounts, the loan officer will contact the credit bureaus through a third-party credit agency and do a rapid rescore. This process often takes 3 to 5 business days.
Other Benefits Of Using Rapid Rescore
The rapid rescore process does cost money and can get very expensive. Gustan Cho Associates will not ask for the rapid rescore fees upfront. Other reasons to use rapid rescore are to get credit reports updated quickly. For example, let’s say that a borrower-paid off a car loan but it is not reflecting on the credit report. The borrower can get the loan officer proof of payoff and the loan officer can get the credit bureaus to update the consumer credit report in a matter of 3 to 5 days. Rapid rescores can be used to update errors on credit reports as well.
Borrowers With High Debt To Income Ratios
Borrowers with higher debt to income ratios may not qualify for a mortgage unless they pay off certain credit tradelines. However, just because consumers pay off a particular creditor does not mean the credit bureaus will instantly update their credit reports. Loan officers can do rapid rescore when a borrower pays off a particular debt to get their debt to income ratios down. Again, the rapid rescore will take three to five business days to update.
Homebuyers who need to qualify for a mortgage sooner than later and need a direct lender with no overlays, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.
