With loan volumes in the business already declining, lenders are looking for new ways to meet their growth targets. Several opportunities are available for lenders that focus on credit, especially early in the mortgage origination cycle, all across the consumer credit range, without exception from the lowest to the highest credit bands.

For credit applicants, the percentage of those who could improve their credit score in the lower bands was almost identical to the percentage of those who could improve their score in the upper bands. Data reveals that 71% of loan applicants with scores below 760 have a good chance of improving their score by at least one 20-point band in the next 30 days.

In any market, a lender’s ability to approve more of the applicants who walk through the door is a win, but it’s more true in a buy money market where volumes are declining. As a result, it is critical to understand if an application can improve their score and qualify from the start.

Applicants seek a lender they can trust, and according to data, half of them will apply to three or more lenders in the hopes of finding the appropriate one, with the number increasing for first-time homebuyers. Originators who focus on the applicant’s credit to obtain a better deal on their new loan are a wonderful method to earn the applicant’s trust and keep them from going to another lender. Putting the customer’s credit first is a terrific method to seal the transaction.

Lenders implement a Credit First strategy, which encourages loan officers to discuss credit with new applicants right at the start of the relationship, stressing possibilities to improve their mortgage credit score. To read more on this, click here.


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