Poor Credit Leading To An Expensive Mortgage? Rapid Rescoring Can Be A Solution

When can a 100 point difference in anything - cost you $10

,000? For starters, a drop in your credit score by that amount can potentially affect your mortgage rate, so that over the life of the mortgage, the total amount that you excessively spent could easily be $10,000 or even greater. Even worse, a poor credit score can prevent even qualifying for a mortgage.

So what are homebuyesr to do when theyre in the process of getting a mortgage and theyve already started the paperwork on his/her dream home? They could try a process known as rapid rescoring. If there's an error on the credit report, or if the homebuyer hasnt managed his/her finances and debt properly, the credit score can actually be increased through this process, often by substantial amounts. The process itself can take place in a matter of days.

Here's how rapid rescoring works: If there's a mistake on your credit report, you have to verify that it is an error. Rapid rescorers can assist in this process. They first identify the errors, research the mistaken entries and documents the paperwork. Then, the rescorer contacts the 3 national credit bureaus and requests their verification. In a period of 24 to 72 hours, the homebuyers credit report is corrected and seemingly overnight, the credit score can go up, oftentimes, by 100 points or greater.

In addition to correcting errors, a rescoring expert can help restructure the applicants debt to improve the overall score. For example, say you have three credit cards, and one of them is near the limit, but you hardly use the other two. By transferring some of that debt to the other two cards, you may be able to improve your overall score. Why? Credit scoring models are typically biased against consumers who are near their credit limits. By simply reshuffling and reallocating the balances in the charge accounts, the applicant can achieve a higher credit score.

So if you feel like you mistakes in judgment can lead to blemishes in your credit report, and can also lead to a higher mortgage rate, youre absolutely right. But do realize that options are available to get your credit score down to where it should be, options that should be pursued through a qualified mortgage professional. Pursuing this option can save you not only a considerable amount of money, but a considerable amount of anguish as well.

For more information on rapid rescoring as well as residential mortgages and loans, contact one of our one of our Licensed Mortgage Advisors at Bond Street Mortgage, a leading Residential Mortgage Lender in New Jersey at 201 282 5016.

James M. Di Piazza

by: James Di Piazza

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