Rapid Rescore Process To Raise Scores To Qualify For Mortgage
This BLOG On Rapid Rescore Process To Raise Scores To Qualify For Mortgage Was Published On December 17th, 2018
- Dealing with the credit bureaus is extremely frustrating
- It can take a LONG TIME
- Mainly because you do not know what day your particular tradeline will report to the credit bureaus
- Anytime you need an update on your credit report it can take anywhere from 30 to 60 days. 30 to 60 days in the mortgage process is an eternity
- Most closings take place within 30 to 45 days, SO waiting for the credit bureaus to update your accounts is a luxury we do not have
- This is why some mortgage companies participate in the rapid rescore process
- At Gustan Cho Associates, we are experts in rapid rescore process
- We have completed hundreds of rapid rescore process
- Doing so we are helping numerous borrowers qualify for a mortgage
- At the end of the process, it is incredibly rewarding, but during the process, there are a few steps we need you to follow
- This blog will detail how to get a rapid rescore completed
- While the rapid rescore process has been around for quite some time, it has become more popular over the past few years as credit score requirements have become mandatory after the real estate crash of 2008
Purpose For Rapid Rescore Process For Borrowers
What is the purpose of a rapid rescore?- The rapid rescore process is used when you need to update a tradeline on your credit report in a timely fashion
- For example, if your credit score was a 615 and you paid down a credit card that was close to its limit, we would do a rapid rescore on that tradeline to reflect on your credit score
- Within 3-5 days, you should see your score come up, hopefully above 620 for this example
How To Start Rapid Rescore Process To Update Credit Report
Where to start?- You will need to provide your loan officer with the proper documentation to complete the rapid rescoring process
- Whether we are utilizing the rapid rescore process to remove false information or update card balances to raise credit scores, you will need to provide proof
- For example, if paying a credit card down, you will need to provide a bank statement as well as a transaction history showing the funds leave your account to pay down the credit card
- You will also need to show your credit card statement and transaction history showing the payment was received
- Both pieces of information, we will need to see your name and account number visible
- The rapid rescoring representative needs to bring complete information to the credit bureaus to get the information updated
- You will also complete a borrower’s authorization form to start the process
What To Expect During Rapid Rescore Process
What to expect? We all know the mortgage process can be incredibly stressful.- This can be true with the rapid rescore process as well
- It is important to understand that a rapid rescore is NOT “credit repair”
- Meaning you are not going to dispute any information on the credit report
- You are not going to negotiate settlements with the creditors
- A rapid rescore is simply a streamlined process for updating information with the credit bureaus
- This rapid rescore process will not remove negative information (reporting correctly) from your credit report
- This is not a trick to improve credit scores, just a way to update information in a timelier fashion with the credit bureaus
- As stated above, most tradelines will be updated within 3 to 5 business days
- This process can take longer at times depending on the account that needs updating
- The process is only rapid with your assistance, meaning the loan officer may need additional pieces of information from you, or you may even need to be on a recorded conference call with the creditor
How Much Does Rapid Rescoring Costs
Is there a cost involved?- There can be cost involved depending on the severity of the rapid rescore
- The cost anywhere from $30 to $50 per credit bureau per tradeline (please talk to a loan officer licensed in your state for more exact figures)
- As you can imagine,this will add up quickly in some cases
- Luckily, the Fair Credit Reporting Act does not allow lenders to charge separate fees for this service
- Keep in mind, the fees can still be included in your closing costs but will need to be disclosed to you upfront
Main Uses And Purposes Of Rapid Rescores
What can a rapid rescore be used for?- Remove derogatory accounts or derogatory information that was reported in error
- Update an account that has been paid in full or the balance paid down
- Update the status of an account such as a collection account
- Update an account to verify it was included in a bankruptcy
Documentation Required To Start Rapid Rescore Process
What documentation must you provide? We touched on this already, but here is a more specific list. The credit bureaus are incredibly picky about what documentation they will accept.- Documentation must be on the creditors’ letterhead
- Must come from the same creditor reporting the account to the credit bureaus
- Must specifically show how the information has changed
- Must include the date, complete account number, and the name and contact information of the Creditor
