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Steven Crowell

Rapid rescoring

Monday, January 6, 2014 - Article by: Steven Crowell - Primary Residential Mortgage Inc. - Message

In a world of instant gratification, this can also be translated into the realm of credit scores. Currently there is a huge shift of my consumer demand from FHA loans to conventional loan. FHA'a fees have increased pushing borrower into lower cost conventional loan. The problem with conventional loans is the existence of LLPA's or Loan Level Price Adjustments. In the context of this blog, this basically equates to the lower the credit score the higher the interest rate available.

This brings me to the title of the blog, Rapid rescoring. Some lenders like myself have the ability to use a program with our credit agencies that allows us to get a model of what to do to maximize your credit score. Many times this has to do with updating some balances on credit cards, maybe even payments that have already been made. I have seen a credit score go up 100 points by a borrower paying down a credit card by $250. This can have a significant impact on whether a borrower qualifies for the best rates available or if they even qualify at all.

Please contact me if you would like a further description, if your credit score is too low to get a mortgage or if you want to find out how to maximize your score.


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