About 8% of mortgage applications were rejected for single-family homes in 2019, according to the latest available data supplied by lenders to the federal government under the Home Mortgage Disclosure Act. What were the reasons for the denials?

  • High debt-to-income ratio (35%)
  • Poor credit history (22%)
  • Lack of collateral or LTV (18%)
  • Incomplete applications, insufficient cash, unverifiable information and spotty employment history (15%)

Many rejected applicants narrowly missed qualifying for a home loan, while others received less-than-desirable mortgage offers. Fortunately, both groups may be eligible for better mortgage options. All it takes is a little knowledge.

Credit Scoring Tools to Educate Mortgage Loan Applicants

Borrowers with low credit scores may not realize how much their financial decisions, credit score and interest rate factor into mortgage qualification. With Scoring Tools from Xactus, you can show potential borrowers what activities they could take to possibly improve their chances of obtaining a desirable mortgage loan.

  1. Creditxpert® Wayfinder™ evaluates hundreds of options, looking at the positive and negative factors influencing the borrower’s credit score to offer the best possible solutions. You get an intuitive interface plus the ability to easily share recommendations with the applicant and view the likelihood of success.
  2. The What If Simulator demonstrates actions borrowers could take to possibly impact their credit score, such as adding or removing accounts and correcting errors.
  3. After the borrower has completed the recommended actions, our Score Plus program can update credit bureau files and re-pull credit within as little as 72 hours.

Finding the best mortgage options for borrowers begins with up-to-date and accurate data. Make sure you review your borrowers’ credit reports. Our team can help:

  • Delete misreported, inaccurate or outdated information
  • Remove derogatory information and accounts reported in error
  • Update accounts that are paid in full and closed
  • Update the status of a collection, including balance or paid-in-full status
  • Update accounts included in bankruptcy
  • Remove late dates from tradelines

With a little extra time and education, you could open up new mortgage options for borrowers. Learn more about Xactus’ credit scoring tools or contact your Account Executive today.

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