What is a 7 Day Rapid rescore?
This Article On Rapid Rescore By Lenders Increases Credit Scores In Days
What Is Rapid Rescoring
Rapid rescoring is a service mortgage brokers use to expedite recent updates on consumer credit reports in a matter of days versus weeks. Borrowers in an active mortgage process often need their most recent activities on their credit report updated. By getting recent activities updated on consumer credit reports, this often can increase credit scores. Higher credit scores mean lower mortgage rates. For example, your will have lower credit scores if you have maxed out credit cards. By paying down your credit card balance, it can boost your credit scores. However, if you were to pay down your credit card balance in the beginning of the month, the credit card company may not report the update your payment until later in the month. Then it may take another couple of weeks for the credit bureaus to update your payment. This can mean over 30 days for everything on your credit profile to be updated. With rapid rescoring expedites recent updates to consumer credit accounts in an accelerated timeframe versus the 30 to 60 days it normally takes. Now due to the service of rapid rescoring, the information on your credit report can be updated in as fast as three to five days. Borrowers are in a time crunch. Therefore, the services of rapid rescoring is very valuable. Lenders can get a rapid rescore done in less than 7 days. It can be done as quickly as in three to five days.
The Importance Of Rapid Rescore To Meet Deadline Dates During The Mortgage Process
Rates went higher while you waited and now your in the same boat as you were when you started. Rapid Rescore is what the Mortgage Broker would do. Every lender should have a rapid rescoring service.
Who Can Rapid Rescore Consumers
Rapid Rescore is not something you can do on your own. This updates your accounts quickly and is reflected on your mortgage credit report quickly. It is a process. Most Mortgage Brokers will recommend this if your Mortgage credit score is less than you need to get a loan or less then the next tier to get a better rate. This is done by reducing balances owed, removing derogatory items, or updating balances that are not reflected yet. The Mortgage Broker can review your credit report in depth and use a computer simulator to determine the best action to move forward in order to get your credit score to move up. They can even determine approximately what your score will move up to. An example of this would be maybe you need to pay down your Capital one credit card to 30% of the highest credit limit. Maybe its only $50.00. You would do this immediately online with Capital one and then print off the documentation showing your new balance. The documentation would need to be given to your Mortgage Broker who would then submit it to the credit agency to rapidly rescore your credit score on a mortgage credit report.
Rapid Rescore Process And How Rapid Rescoring Works
A Rapid Rescore is an amazing tool if used correctly. You must provide the correct information and do exactly what your Mortgage Broker says to do. If they tell you to pay down Macys so that you have a balance of $28.50, then this is what needs to be done DO NOT pay off Macys. This could affect your score negatively and bring in down instead of up as maybe now you do not have enough credit. It is not to be used to trick the credit beau. This does not work. If you have a late payment on the last mortgage that you had and you were late…. This is not going to go away. However, if you were not late and can provide documentation to this then it would work if that derogatory was affecting your credit score. This is not a credit repair system. Its more of a fast track path to get inaccurate items removed or changed quickly. If you need a HUGE gain this is not something you should rely on. Although I have seen some scores go up dramatically. You will need to do the work to get it done quickly. This is not something we can do for you. We can tell you exactly what to do and you will need to do that. Rapid rescore is a strategy. It can drop your score if you do something in the meantime that wasn’t a part of the plan. Again, only Mortgage Brokers and Mortgage Bankers can do this. Therefor if you hear of another source who says they are doing this, it is not true. Not all Mortgage Bankers or Mortgage Brokers offer this service. If yours does not, come see us! Cost for a Rapid Rescore can be anywhere from $7.50 to $70.00 per account per credit bureau. However this will be part of the closing cost of the loan. This is not charged up front.
Once the credit report is updated a new score will be reflected on the Mortgage credit report. The loan officer will re-pull another tri-merger credit report of the borrower. The new credit report should reflect all recent updates and credit report changes. For more information about this blog and/or other mortgage-related topics, please contact Gustan Cho at Capital Lending Network, Inc.