Pre scoring is the process of evaluating a potential applicant’s credit history, income and assets before lending money to that person. A pre-scoring solution does not include the borrower’s payment histories, financial security and other factors. Instead, the scoring only considers the borrower’s credit and loan history. It doesn’t include personal data or information about what the applicant may buy or own. In fact, the lender simply needs the borrower’s credit and loan history!
A pre-scoring solution for mortgage loans is an essential tool for those lenders who may be concerned about a borrower’s credit and ability to pay. It is also a good idea for individuals who are looking to purchase a home but have not saved enough money for a down payment. This type of mortgage refinancing is not only convenient, but it can save you thousands of dollars when used correctly. Here’s how it works.
First, the lender will gather information regarding your credit and any other assets. Your income pre scoring solution will come from various sources, such as employment, overtime, commissions and stock options. Your financial assets will include retirement funds, stocks, bonds and insurance policies. These are authorized loans will be collateralized with your property (home). The lender will use these assets to provide you with a pre-approved mortgage. The loan amount will be based on the amount of collateral you have, along with the interest rate.
Now, to the point. Most people are wondering how the pre-score of the authorized loans compares to other types of mortgage loans. The reality is that the pre-authorized mortgage is actually a slightly modified version of a standard mortgage loan. When you apply with a mortgage broker or a bank, they will ask you about your credit history, employment history, savings and investments, etc.
Based on your answers, they will then determine if you meet the pre-qualified score requirement for pre-authorized loans. Depending on the requirements, you will either get a “yes” or “no” answer. If you choose to go through the pre-scoring solution process, your answers will be used by the mortgage company when processing your application. Your pre-approved score will also be used to decide if you are indeed a good risk. The lower your pre-approved score, the better of a risk you are to the lender.
With the score, the lender will also look at the possibility of you re-paying off the loan. This will require that you have a higher than average interest rate. So, if you want pre-approval and a lower than average interest rate, it may be best if you choose a mortgage broker or bank who offer a pre-scoring solution.
The pre approval mortgage services offer many advantages to borrowers. For example, with a pre-approval, the lenders can determine if you will be able to make the monthly payments and on time. The pre score is based on several factors including the payment history, current income, employment history, credit history, financial history and other information that are submitted to the service provider. This is why your FICO score will not necessarily be the same with a pre-approval. If your score turns out to be lower than what you expected, the pre-scoring solution can still help you get pre approved but the terms and conditions will probably be different from your regular mortgage deal.
Many lenders offer pre score mortgage services. The availability of these services can be done online from the comfort of your own home. The entire process usually only takes about a couple of minutes and it doesn’t cost anything to take advantage of it. You should use this service because it can help you get the approval for a lower interest rate or better terms. Make sure that you do your research before deciding to go through with it so that you’ll know whether or not it’s really worth your money.