Credit Re-scoring: What is it and Why Should You Care?

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Real Estate Agent with Tierra Antigua Realty SA624527000

 Working with a client, maybe a first time home buyer that was not able to get pre-approved?   One option for them may be a credit re-scoring.  This is just one of many reasons why I have relationships with local lenders who work with our client to get them approved.   Keep in mind, there are no "wrong answers" when getting pre-approved for a loan.  If the client can't get approved now, a good local lender can provide guidance of things the client can do (IE improve their FICO score), so that home ownership can be part of their future. 

Using credit simulation programs, lenders can predict what effect actions by clients/consumers will have on their credit score. The most common action is paying down or paying off revolving balances that are at or near their limit. The lender can then have the client/consumer pay down the account and provide a screen shot to the lender of the new balance. The lender can then order a rapid re-score through one or more of the credit repositories.

 

This is most commonly done for clients/consumers (first-time buyers, for example) who are below the minimum threshold for credit scores to be mortgage eligible in an attempt to get them up to the minimum standards. It can also be effective to raise credit scores for consumers who have the minimum credit score but who would receive a lower interest rate and lower mortgage insurance charge with a higher credit score (typical on conventional loans).

 

This is a free service to the consumer and the lender is not allowed to charge for credit re-scoring.  This is good for buyers to know, and also the agents that work with buyer's.

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first time home buyers
getting approved for a loan
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Rainmaker
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Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Spirit Messingham that was an informative post on credit rescoring. Thanks.

Mar 27, 2015 08:35 AM #1
Rainmaker
175,464
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

Thank you Wayne Johnson!

Mar 27, 2015 08:44 AM #2
Rainmaker
3,985,637
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Interesting...I had not heard of this before.  I hae a client that may benifit from this blog.

Mar 27, 2015 08:47 AM #3
Rainmaker
175,464
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

That is great news William Feela, consider it another tool in your utility belt.

Mar 27, 2015 08:53 AM #4
Rainmaker
510,224
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Great info Spirit.  I've had buyers benefit greatly from this and many are not aware.  Thanks for the post. 

Mar 27, 2015 10:51 AM #5
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Rainmaker
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Spirit Messingham

Third Generation Full-Time Realtor® 520 471-6900
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