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Rapid Rescore Refinance Mortgage Loan Tips

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HIGHLIGHTS
  • Review how Rapid Rescore can raise your credit score.
  • Understand that lenders have tightened credit requirements in the past few years.
  • Take the right steps to raise your credit score, to get the best interest rates available.

Raise your credit score fast, in order to get the lowest interest rate loan

You may be considering refinancing your mortgage, like many homeowners these days, in order to take advantage of the historically low interest rates currently available. After all, interest rates have not been this low in years. It looks like they will continue to stay low, until the economy improves substantially.

Quick tip  Contact one of Bills.com's pre-screened mortgage providers for a free, no-hassle mortgage quote.

One barrier to successfully completing a home mortgage refinance may be your credit score. Perhaps your scores are too low to pass the lender's inspection, given the extremely tight underwriting guidelines lenders now use.

Fannie Mae's lending guidelines have tightened considerably in the last two years. Even well-qualified borrowers who have good LTVs (loan to value ratios), assets, steady income, job security, and great credit will find that the lending process is more complicated than it was a few years back.  Many borrowers are finding that currently require far more documentation than they did previously. Often, borrowers find these requests difficult to comprehend. They seem to come out of nowhere and for no sensible reason. The truth is that, as opposed to four years ago, many lenders and underwriters are trying to look for reasons NOT to make the loan.

Having a high credit score (over 740) is very important. Even if you have all of the other positive attributes listed above, your mortgage application will be declined if your credit score is too low. How low is too low? Technically, you should be able to get a loan with a score of 620 according to rate sheets published by most lenders. In reality a 620 score will probably be declined, but not after the lender makes the prospective borrower turn in many letters of explanation and other related materials.

One great way to raise your credit score is to work with your mortgage broker. Mortgage brokers usually get their credit reports from an accredited credit report provider such as Acranet. Many of these providers have great customer service departments that provides a service called Rapid Rescore.

A Rapid Rescore is just what the name implies. The borrower takes a few quick actions and then the borrower’s credit report is pulled again, usually with very positive results.

Here is how it works: The broker or loan officer will call the credit score provider and request that one of their experts review the credit report. Sometimes the borrower may also be included in a conference call. The analyst at the credit report provider gives his or her expert advice on what specific steps the borrower can take in order to raise his or her FICO. Recommended actions could include a borrower paying down credit card balances to a certain level or getting letters from collection agencies that show the debt has been paid.

Once the borrower has completed his or her part of the arrangement, the credit score provider will perform the Rapid Rescore. Most providers charge a fee for this, usually around $100 for all three credit bureaus. The Rapid Rescore takes about three days and the results are usually very positive.  At times, the Rapid Rescore can make all the difference in qualifying for a low interest rate.  Normally, if  you take steps to improve your credit score, it can take at least a month (and often longer) to have any actions you take to be reflected on your credit report.  Before your score is recalculated, negative items on your credit report could cause you to be turned down for a low interest loan. It could also result in your being approved for a loan, but getting a loan with a higher interest rate. Over the course of your loan, a higher interest rate could cost you tens of thousands of dollars.

Ask your loan officer if you will qualify for a better rate if your credit score were higher. Find out exactly how much higher your score would need to be, in order to get a better rate. Make sure to ask your loan officer or mortgage broker about Rapid Rescores. If they don’t know what you are referring to, you may want to get another broker or loan officer.

Comments (2)


Toni K.
Vacaville, CA  |  November 11, 2011
I applied for a Home Loan last year through my bank..when all information was collected and sent to Credco..I was DENIED stating "did not have enough credit established (divorced)..My credit scores were above 700 and I had established a new credit card in my name..Credco used EQIFAX to check my credit which only had one credit card showing. But failed to check experian and Transunion where my other accounts are located.My accts. on experian and transunion are closed but they are still on my reports. Therefore I was denied a home loan because of EQUIFAX
Bills.com
November 11, 2011
I think your ire for Equifax is misplaced. First, Credco decided to pull your information from only one credit reporting agency, and in my opinion, it should be pulling data from all three when such a mortgage go/no-go decision is at stake. Second, your mortgage underwriter should use a service provider that pulls credit information from three or more credit reporting agencies when making its underwriting decisions. Finally, just because one underwriter made a decision based on incomplete information does not mean all will. Continue shopping for a home loan.
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