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Just approved Dave Stambone Banker restores credit, approves buyers for new home

April 1, 2019 GMT

Mortgage banker: Dave Stambone

Property type: Single-family home purchase in Ridgefield

Home value: $475,000

Loan amount: $458,375

Loan terms: Federal Housing Administration, 30-year fixed, 4.375 percent, no points

Backstory: A couple was referred to Stambone by their attorney to obtain a mortgage pre-approval for a home purchase. A mortgage pre-approval allows a prospective buyer to place an offer in confidence knowing they may obtain a mortgage.

A pre-approval also communicates a buyer’s credibility to the seller when evaluating an offer.

The buyers were unable to obtain a mortgage pre-approval from their local bank as their credit profile did not fit the bank’s lending parameters.

The house they wanted had just come on the market and they were anxious to see if there were any alternative financing solutions available to them.

In the interest of time, Stambone arranged an evening appointment to discuss the buyer’s credit report in detail. With more than 18 years of experience processing, analyzing and originating mortgage loans, Stambone noticed an opportunity for the buyers to qualify.

Stambone and his bank offer a credit simulator and rapid rescoring service that allows them to run hypothetical scenarios to see what would happen to credit scores if certain accounts are paid down or off.

This is beneficial because if a buyer were to simply pay debt down on their own, scores may take up to 90 days to be updated by all three credit bureaus. Further, there is no telling how high scores may move (or not) to benefit their situation.

Consequently, the couple had several credit card balances approaching the limit to each account.

Stambone noticed that if the borrowers were to pay the accounts to zero, their credit scores could increase by more than 30 points where they would then qualify.

While the simulator is not always 100 percent accurate, it offers a very good idea of the potential results.

Finally, the buyers agreed to pay off each account and provided evidence that the balances were paid in full. Stambone forwarded the information to his credit agency for a rapid review update.

The results arrived a week later and the buyers’ credit scores improved to meet the requirements for a loan approval.

They closed on their home purchase 21 days later and are loving life in their new home.

Dave Stambone,

Total Mortgage Services,