From Mortgage Emergency To Happy Homeowner
You know that your credit score is a key part of your mortgage application. But what would you do if there was a mistake on your credit report? Would you have the support you need to get things corrected in order to secure the home you want to buy?
When Shelley called us, she had a mortgage emergency! Her subject removal on the condo she wanted to buy was only a few days away, and the broker she had been working with stopped returning her calls. She knew that she had to get financing in place asap or risk losing the property to another buyer.
Although emergencies aren't ideal, our team understands how important deadlines are in a real estate transaction and so can usually push through to secure a lender. However, Shelley had an extra challenge to overcome: her credit score was unusually low because of inaccuracies on the report.
Since we ask for all the paperwork up front in order to properly assess a file, we were able to piece together the story of what had happened. Shelley had gone through a consumer proposal several years earlier, but those payments had never been reported; the outstanding debts were still showing on her credit report and negatively impacting her score even though they had been settled.
With this information, our brokers were able to approach a lender for an exception to the minimum credit requirements. This plan worked, as Shelley had a significant down payment and strong, verifiable income to support her application. We were able to secure a mortgage for Shelley with a short term so that she would be able to renew at a lower rate when her credit report was corrected and the score increased. More importantly, we were able to meet the deadline for subject removal so that she could go ahead with the purchase of her condo!
Shelley was the only one who could have the inaccurate information taken off her credit report, but our team supported her through the process with our experience and knowledge of the documents she would need to provide in order to have everything corrected. She has continued to reestablish her credit score, and is on track to renew with an 'A' lender.
Working with Shelley, we found opportunity in her challenges, and ultimately helped her to achieve her home ownership goals.