Monday, June 3, 2013

Rapid Rescore for A Louisville Kentucky Mortgage Loan Approval

How long does it take to update credit information? While Score Plus is unable to guarantee a completion date, turnaround time to update credit information is typically 5-7 business days from the time your request is received. If the bureau rejects the documents, you will be promptly notified.
What types of credit information can Score Plus update?
Given a verifiable document from the creditor, Score Plus can:
  • Remove derogatory information and accounts that were reported in error
  • Update an account that has been paid in full and closed
  • Update the status of a collection
  • Update a balance or paid-in-full status
  • Update an account to show that it was included in a bankruptcy
What documentation is required for Score Plus?
Bureaus require that all documents submitted:
  • MUST be typed on the creditor’s letterhead
  • MUST come from the creditor reporting the account
  • MUST state specifically how the information should be changed
  • MUST include the date, complete account number, and the name and contact phone number of the creditor

 A few credit score points can mean the difference between a good mortgage rate, a lousy one or getting a loan at all. But take heart: If errors are dragging down your score, you can get them fixed, just in time for your much-anticipated closing.
Rapid rescoring, a practice employed by mortgage lenders and brokers to help lift clients' scores to qualify for better loans, allows borrowers to get accurate information updated into credit files within a few days, rather than waiting weeks or months for the credit bureaus to do it on their own.
That faster timetable could save you thousands of dollars on your loan. In the 2012 mortgage market, "Raising someone's middle FICO score from 699 to 720, for example, will save 1.25 percent in fees," says Joe Parsons, a senior loan officer at PFS Funding in California.  "In our residential mortgage practice, we frequently do rescores for borrowers. The cost is minimal, and the improvement in mortgage pricing is very significant."

For example, if you pull your credit reports and see that there are legitimate errors on them that are pulling down your credit score, a rapid rescore can help you get those errors corrected much faster than if you tried to dispute them yourself.
"If you try to do it yourself by doing a dispute directly with the bureaus, then they have 30 days, technically, to investigate the dispute and get back to you with an answer,"
However, if you have a rapid rescoring service get the errors corrected for you, they'll provide proof to the credit reporting agencies that the errors are bogus and have your credit score recalculated to reflect the changes, usually within a few days.  
Your mortgage broker may also recommend a rapid rescore if you have high balances on your credit cards and just need to add a handful of points to your score to get the loan you want. "Loan officers have access to something called a 'what-if' simulator," says Sanford. "A what-if simulation is basically a mathematical model that the mortgage companies work with to say, 'What if they paid off their credit card?'"
If a loan officer sees that you can boost your score by enough points to qualify for a lower-interest loan, he or she may ask you to pay down your credit cards to below 30 percent of your credit limit and have you print out proof of your new balance.
That information will then be expedited to the credit reporting agencies so they can update your file without waiting for the credit card issuer to report your updated information. "There are some credit cards that report to the bureaus at the beginning of the month, some at the end of the month, some only every other month," says Leisure. "By doing a rapid rescore, we can get that information corrected within three business days."

Rapid rescoring is not credit repair
Proponents of rapid rescoring are quick to point out that it's not a form of credit repair -- an industry whose bad apples promise, illegally, to erase accurate negative information from consumers' credit reports. Rapid rescoring should only be done through a mortgage broker or lender. "I'd be a little leery actually of anything that offered a rapid rescore directly to the borrower," says Leisure. "That almost borders on credit repair and when it comes to credit repair, I just say 'no.'"

If you don't mind, go ahead and get the following things together and I will see what you how much qualify for on a home.

Joel Lobb
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346

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