If low credit scores are causing you to have high fallout rates, you may want to start pre-qualifying your applicants prior to having them complete a full application and ordering a tri-merge report. How? By having your applicant initiate the pre-approval process.
When the applicant initiates the pre-approval process, a firm offer of credit is not required and permissible purpose does apply. Therefore, you must make sure you are properly documenting your applicant’s permission to pull their credit. If you are asking them over the phone or in-person if you can pull his/her credit, you must have a verbal recording documented in the applicant’s file. Or, you should obtain a signature from your applicant that gives you permission.
You can save money with SmartSelect too!
You can also reduce costs and save yourself some money by using SmartSelect to obtain hard inquiries. Within your LOS, just set parameters to pull one bureau first, and if that looks good, you can order the other two.
Want to capture more closings?
Both Pre-Approval Plus and SmartSelect are solutions included in CloseCAPTURETM – a suite of products designed to help lenders be more productive and profitable. Lending Hand is another CloseCAPTURE solution. It’s a service for applicants with credit scores that are near qualifying. With Lending Hand, you’ll receive a low cost, expert evaluation of each credit file so you can share helpful insights with your applicant and a planned set of actions for the highest probability of a successful rescore.
Given that we’re in the midst of homebuying season, it’s the perfect time to take a closer look at CloseCAPTURE. Watch this video for more information.