Wednesday, August 04, 2010

"Smart" Credit System Helps Las Vegas Home Buyers!

Whether your credit is already good or if it needs a helping hand, you need to read this blog article!

A local Las Vegas mortgage lender, Residential Capital Mortgage, has developed a proprietary credit reporting system capable of helping prospective purchasers determine the quickest way to boost their credit scores within 30 to 60 days. This “smart” system, Credit Compass, pulls the borrower’s credit from each of the three major credit reporting bureaus: Experian, Equifax and TransUnion, and then prints out a summary for each credit bureau. The summary details exactly how many points the borrower’s score will be raised at each bureau if they pay off/down certain credit lines, pay off specific collection accounts, or have items deleted from the report that should not even be there.

Most lenders “guess” which items are having the most adverse affect on a borrower’s credit and then have to wait for a credit rescore to determine if the borrower will be eligible for a loan. If the lender guesses wrong, the borrower could spend thousands paying off the wrong bills and still not be able to qualify. Residential Capital’s innovative new system allows the borrower to prioritize which items on the credit report should be addressed first for the least amount of money out of pocket to raise the borrower’s scores enough to qualify for the purchase of Las Vegas real estate.

Once specific items have been identified and taken care of, the borrower’s loan officer would contact the credit reporting bureaus and have them initiate an immediate credit rescore. Already many borrowers have had their credit scores raised 50 to 60 points within a short time period, allowing them to buy Las Vegas homes or Las Vegas condos far more quickly than with conventional credit systems! And for far less money.

All types of loans use the “middle” score from the three credit bureaus to determine eligibility. FHA and VA loans require a minimum 620 credit score to qualify for a loan, but the rate is the same no matter how high the score. Conventional loans require higher credit scores, and the interest rate charged on a conventional loan varies according to the credit score based on federal risk guidelines. So even buyers with good credit can benefit greatly from the Credit Compass system. Raising a borrower’s score from 680 to 720 could save the borrower 1/4% or more on their interest rate! (By the way, this lender’s rates and fees are consistently lower than Bank of America, Wells Fargo, and Chase.)

And the cost? A mere $22.00 for the credit report AND summary! If the borrower pays off a credit line or has an item deleted from the credit report, there would be an additional charge of $25 per item per credit bureau to have the credit rescored. The lender would only have the credit score updated on as many credit bureaus as necessary to increase the borrower’s middle score quickly, within three to five days. For example, if the buyer needs two items updated on two different bureaus, the cost would be $25 per item or $50, times two credit bureaus = $100. The third bureau will automatically update at the beginning of the month, so in most instances there is no need to pay for a quick update on all three credit bureaus, and sometimes an update is only necessary on one credit bureau. The $25 per item is charged by the credit bureaus, and is NOT a lender charge.

For borrowers who need more time to work on their credit due to bankruptcy or foreclosure and/or to save enough money to payoff existing credit/collections, the Credit Compass system can also put the borrower on a detailed long term plan that is MUCH cheaper than other credit consulting companies. For a one time fee of $295 per borrower (or an additional $100 for a borrower’s spouse), the system will outline exactly what the borrower needs to do to improve their credit rating and provides periodic updates on how their credit scores are doing. Most credit consulting agencies charge $250 per month OR MORE for the same service. Plus when the borrower eventually gets a mortgage through Residential Capital, this fee is refunded at closing.

With today’s low interest rates and the all time low prices of Las Vegas homes for sale, including Las Vegas foreclosures and short sales, it makes sense for a borrower to get into a home as quickly as possible before prices and rates rise again. The Credit Compass system, available in Las Vegas for owner occupants, second homes and investors alike, can help make your dreams come true. For more information, please call us at 985-7654.

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