Rapid Rescore Your Credit Report for Loan Approval
I wrote an article in July of 2009 that still gets tons of search engine hits…. Yet, it is still very misunderstood. Rapid Rescore Your Credit Report for Loan Approval
Well, let’s go ahead and get this out right away….. It is a dangerous tool in the hands of a poor loan officer; that is for sure. But in the hands of the right Mortgage Loan Officer, it can be very valuable
Rapid rescoring a credit report is a tool that has been around for a while. I have used it since 2004 when I entered the mortgage lending business. I have a strong background in credit scoring and know that credit repair/correcting can cause more harm than good. I also know that taking the time to run a score simulator first is key to not messing up!! But if you have ½ of your credit report littered with collections….. Uh, well, please don’t even try. You are setting yourself up for disappointment.
Although considered a ‘gray area’ of RESPA by some…… I have yet to find anyone in the credit reporting business that does not consider it a violation of RESPA to charge for a rapid rescore. Now, this isn’t cheap…. I have spent upwards of a few hundred dollars on these things. A gamble for sure, but I entered into it with full knowledge that I could NOT recoup my expenses.
Why can I not charge for Rapid Rescore? RESPA considers it an ‘Unearned Fee’. Basically, I would be charging my client for something that they can do for themselves…. For free.
Another fact: A client can save THOUSAND$ of dollars over the life of their loan if they are able to utilize the Rapid Rescore to put their 690 credit score over 700 or better yet, over 720.
TODAY: Fannie Mae has risked based pricing…. And I have to charge higher rates for lower scores. Don’t be that guy….. Get to a lender who can offer a true Mortgage Loan Consultation and find out all of your options.
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!
Your Texas FHA Expert and Dallas Mortgage Expert.