Applying for a mortgage loan is an arduous and sometimes time-consuming process. The timetable from start to finish can stretch out from weeks to sometimes months awaiting approval. That is, if everything from the paperwork to information on a borrower’s credit report is correct. If there are discrepancies on a credit report, for example, the borrower applying for a loan may be immediately denied approval for a home loan. In other cases, if a credit report is requested and the score used to apply for the loan is less than favorable, the borrower may end up spending more money on a mortgage loan. A low credit score can mean the difference between a high interest rate that translates into more expensive payments, or automatic denial for a mortgage loan. Incredibly high interest rates that will cost thousands in payments down the road is the path that borrower do not want to take. But what if there are inconsistencies found in the report that require correction? If an item was reported incorrectly on a credit report, documentation is required to fix the discrepancy. Correcting and updating a credit report can take several weeks if all the proper documentation is provided to fix the correction. These corrections can draw out the loan process, but with Update Express Scoring tools the normal reporting timeline can be considerably shortened. When a borrower is a few points shy of meeting the required qualifications for a mortgage loan, Update Express Rescore Tools can work to get these errors corrected by directly providing credit reporting agencies documentation of the erroneous data. In most cases, this process will only take a few days to complete resulting in a recalculated score.

High balances on a credit card can also negatively effect credit scores. Rescoring tools can also help in this situation with another credit score tool called the “What-if” simulator. Mortgage companies can utilize this model to run a mock-up asking “what if” the borrower paid down a particular credit card with a high balance. Essentially, this is used as a guide or decision tool to determine if a higher score is possible once a balance is paid down.

These tools and simulators all work to the advantage of both the borrower and mortgage broker or lender. To the borrower, securing the best possible interest rate should be top of mind when applying for a mortgage loan, and getting familiar with these resources can help. These tools also help mortgage lenders and brokers close more home loans at a much faster rate.

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