How to qualify for a brand spanking new mortgage

Date Posted: February 17, 2012

Three major factors to keep in mind when applying for a first mortgage are credit, employment and a down payment. For many new graduates, these factors may seem intimidating. Many believe that student debt and a new career can negatively impact the chances of getting approved, but the Globe and Mail reports that this is not always the case.

The first priority is to formulate a realistic budget. Once you start house hunting, it is easy to get caught up in that ideal "dream home". However, this can easily lead to over spending. It is important to know what you can realistically afford.

Once you have a budget in mind, speak to a professional mortgage broker. This will give you viable information regarding what lenders are looking for when you apply. For instance, student debt is often viewed as a negative when, in reality, if you are making your payments in full and on time, this has a positive impact on your credit rating. Employment is also important. It is recommended to be able to show at least a year of steady employment in your new career to prove stability.

Purchasing your first home is an exciting endeavor. This article is an excellent summary of very important points to get you started.