Alex, a client who recently began a career in the tech industry, approached J.P. Morgan Private Bank to secure a mortgage for their first home purchase. With high earning potential and a promising career trajectory, the bank was eager to assist in making Alex's homeownership dream a reality.
To initiate the pre-approval process, Alex was required to provide basic financial documents related to income and assets.
After reviewing these documents, J.P. Morgan Private Bank issued a pre-approval for a mortgage amount that aligned with Alex's current financial standing and the initial property price range under consideration.
During the home search, Alex found a property priced higher than the initial pre-approval amount. Recognizing the importance of this opportunity, Alex reached out to their mortgage specialist at J.P. Morgan Private Bank to explore options for securing the higher purchase price.
The mortgage specialist promptly collaborated with the underwriting team to rework the underwriting analysis based on the higher purchase price. It became evident that Alex did not have sufficient liquidity to meet the requirements for the larger loan amount, primarily due to the recent career start.
To address the liquidity hurdle and ensure qualification for the loan, it was recommended that a co-borrower be added to the loan application. Alex's parent, who has a strong financial profile and substantial liquidity, agreed to join as a co-borrower. This strategic move significantly strengthened the loan application and provided the necessary financial backing.
With the addition of the co-borrower, the underwriting team at J.P. Morgan Private Bank was able to approve the higher purchase price. Alex successfully placed an offer on the desired property and is now in the final stages of closing the mortgage. Alex is thrilled to be moving into the new home, and J.P. Morgan Private Bank is proud to have played a pivotal role in making this milestone possible.
By beginning the pre-approval process prior to submitting offers on homes, Alex was able to confidently assess the homebuying budget and partner with the mortgage specialist to best position themselves in a competitive real estate market.
All case studies are shown for illustrative purposes only and are hypothetical. Any name referenced is fictional and may not be representative of other individual experiences. Information is not a guarantee of future results.
