- who: First time home buyer
- real estate goals: $475-500k condo
- issues: Low credit score
Sharon, a first time home buyer in Victoria, British Columbia, wasn’t happy with the pre-approval amount from her bank. After reviewing her finances, Perch was able to pre-approve her for an amount 4x higher and get Sharon into the real estate market faster.
To buy a $500k property, Sharon only needed to put a 5% down payment even though she had enough money saved for 10% down. Her main obstacle was the low credit score.
With the extra 5% that was initially part of her down payment, we directed her to pay down some of her credit card debt.
After paying down the debts, Sharon’s credit score increased from 580 to 630. She now had the credit score required to buy with mortgage insurance and we pre-approved her up to a $490k purchase price.
Less than a month later, she had an accepted offer on a condo within her budget.
With the help of the Perch platform and leveraging our analytics and senior mortgage advisors, we were able to find a creative solution that helped qualify her for roughly 4x what her bank would have done.
Not only were we able to qualify her for what she wanted, our rate was roughly 0.60% lower as well with a prime lender. The client has already generated a substantial amount of home equity since getting into her home.
Pre-approvals aren’t equal and every client’s situation is different. Many times when a bank or mortgage advisor says it’s impossible, it may just be because they don’t have the knowledge or product that you need. Seek out at least 2-3 opinions when getting advice on financing your home.
In the end, Sharon was happy she could enter the Victoria, British Columbia real estate market sooner than expected as a first time home buyer. She was able to purchase a condo within her budget and start building equity.
The clients were super happy we could make it happen and referred a friend to us!
*Please note that names have been changed in this story to protect the privacy and identity of individuals.