How to Master Pre-Approvals and Better Protect Your Pipeline
Soft credit inquiries can help safeguard your pipeline. Understanding the difference between Xactus’ two pre-approval products, Pre-AppX and Pre-QualificationX, is the first step toward avoiding prospect triggers until much later in the mortgage process.
Pre-AppX Adds Utility to a Soft Credit Pull
Our Pre-AppX soft inquiry report provides you with more flexibility, protecting your pipeline and helping you delay triggers. With Pre-AppX you can:
- Obtain an Early Assessment from Desktop Underwriter® (DU®) and Freddie Mac Loan Quality Advisor®
- Charge consumers
- Review trended credit data. While trended data is initially hidden within the credit report, users have the option to expand and review it in detail.
- Use with scoring tools, supplements and other verification services such as monitoring and income verification
- Onboard through a simple process
- Avoid written consents; consumers must provide authorization
- Pull up to three bureaus
- Allow borrowers to consent for co-borrowers
Note that the cost for Pre-AppX is similar to a hard inquiry.
Pre-QualificationX Offers a Basic Soft Inquiry
Our Pre-QualificationX soft inquiry report also helps protect your pipeline and costs less than a hard inquiry. However, it is different than Pre-AppX in three important ways. Pre-QualificationX:
- Does not include trended credit data or allow scoring tools, supplements or other verifications
- Cannot be used for the GSEs
- Requires written consent
No matter which soft inquiry tool you use, you can’t make a final underwriting decision without pulling a tri-merge hard inquiry with a FICO® score and trended credit data.
What is Trended Credit Data?
Trended Credit Data gives you a complete look into your consumer’s credit behavior. It offers a more fluid review of the consumer’s approach to credit management (payment and balance history) over the past 24 months. The report provides expanded information about the consumer’s credit history at the trade line level by looking at several monthly factors including the amount owed on an account, the minimum required monthly payment, and more importantly, the actual payment made by the consumer in that month.
Be sure to read our flyer for more detailed information about Pre-AppX and Pre-QualificationX.
Read About Pre-AppX and Pre-QualificationX Now
Protecting You Against Triggers with Portfolio MonitoringX
At Xactus, we don’t proactively sell prospect triggers, but we understand how they are resold by the bureaus and other entities. To help you retain your business, we offer Portfolio MonitoringX which allows you to see if another lender is contacting someone in your current loan portfolio and be alerted when opportunities within your portfolio are triggered.
We even offer a free 30-day look back so you can see what new mortgage alerts you would have received if you were monitoring your portfolio.
Learn More About Portfolio MonitoringX
For more information, contact your strategic account manager or email [email protected]. And be sure to stay tuned for more resources and upcoming events!
