To buy your first home you are required to come up with at least 5% of the principal borrowed amount. You will also need to have roughly 1.5% of the purchase price set aside for your additional closing costs.

If you have successfully saved your down payment; congratulations! It means you have a positive cash flow, which is the first key to your lender viewing you in a positive light.

You have a healthy current credit score and credit history.

Building your credit score takes time, and before lenders will pre-approve you for a mortgage, they want to be shown that you carry a positive history of repaying your existing debts. You should have at least two credit accounts with a minimum of $2000 of borrowing power with a positive repayment history and that will usually be enough to make most lenders happy.

Have you had credit issues in the past? It doesn’t mean that you aren’t ready to be a homeowner, but it may require more planning. Depending on the severity of your credit history, this could cause you to potentially require a co-signer.

You have more than enough income to make your mortgage payments.

When qualifying for a mortgage, the lender needs to know that you can make your payments, plus the interest. In perfect circumstances, you will have a permanent full-time job; where you are your past your probationary period and have more than two years of work history with your current employer. Usually, keeping your mortgage costs within a third of your gross income will leave you with 2/3rds of your income to manage the rest of your finances with ease.

You’ve contacted a mortgage expert to assist you.

Your first mortgage can be quite a complicated process. There is a vast amount of information available on the internet, and that makes it hard to know exactly where to begin. While part of you could feel ready, there are many steps to consider, much more than can be outlined when reading generic articles and information online.

So, now that you believe you are ready to buy your first home, it is always best to start with a financial assessment done by a professional mortgage expert. When it's time to discuss your financial situation; talking through all of your down payment options, assessing your credit score, solidifying your current income and debts, and overall, figuring out what kind of mortgage will best fit you and your future goals. Please give us a call and we will take all the guess work out of the equation. Let us provide you with all the options available that will give you the confidence and motivation to purchase your first home with ease.

Contact us anytime, it would be our pleasure to speak with you and answer any further questions you might have.

We provide expert mortgage advice to both individuals and businesses. With over 20 years of experience we’ll ensure that you’re always getting the best guidance from top experts in the entire industry.