Published on August 07, 2018
Written by The Servion Group
Everyone understands the importance of credit scores when buying a home. And we also know how tough it can be when a would-be borrower is declined because their credit wasn’t quite where it needed to be.
Now you can turn “I’m sorry” into “You’re qualified!” with the help of Servion Mortgage’s credit improvement process for retail partners.
When a loan application is submitted to Servion, we obtain the applicant’s credit scores, as always. Here’s where the program comes in: If the score is too low to qualify for a mortgage, our Home Buying Coordinator can use our powerful credit analyzer tool to obtain very specific information on the steps the person could take to improve his or her score.
With the credit analysis and recommended steps for improvement in hand, we will work directly with the borrower to educate them and help accomplish the tasks needed to improve their scores. That’s the beauty of the process – Servion Mortgage will handle the communication, obtain documents from the borrower, provide proof to the credit bureaus that the borrower is doing the right things – all while keeping your team in the loop.
The recommended credit score improvement actions are tailored to each individual. For example, one borrower might be instructed to “pay down the balance on Account X to $200. Score impact: +14.” A different borrower might be advised that “opening a new revolving secured credit card with a limit of at least $500 can improve your score 3 points.”
Our tool provides a total “potential score change,” highlighting that if the borrower follows through on the recommended steps, their score could rise by a specific amount.
Once a borrower finished the steps, with coaching from us, then our team moves the file ahead.
Just a few months into this new venture, 42 borrowers had been placed into the program. 20 of them, or 47 percent, completed the process and increased their scores. Nine closings have resulted, with more expected soon.
The Servion credit improvement process can be a great way for your community bank or credit union to meet the needs of those you would otherwise have to decline. That is great for your institution and great for borrowers – a real win-win.
The only cost for the program is a fee for the credit report, which is paid at closing. Aside from that, there are no other costs to the borrower.
To find out more about the credit score improvement process, please contact your account executive or reach out to Matthew Bartlett, our home buying coordinator, at (651) 746-6420 or firstname.lastname@example.org.