June 19, 2023
June 19, 2023
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Securing a mortgage for your dream home is an exciting milestone. However, for those who just started a new job there may be some apprehension about whether they can get approved for a mortgage. The good news is that it’s possible with a few considerations.
Here’s what you need to know if you’re in this situation.
Employment History Matters
Lenders are looking for stability and consistency in your employment history to ensure that you have a steady income to make mortgage payments. If you’re new to your current job, don’t worry. Having a strong employment history with previous employers can still work in your favor.
In general, lenders prefer to see at least two years of employment history with no gaps longer than six months. But, we understand that every borrower’s situation is unique, and we can work with you to find a lender that suits your needs. – That’s what we are good at! Finding unique solutions for individuals in unique situations.
Your income is a crucial factor that lenders consider when approving a mortgage application. If you’ve just started a new job, your income may not be as high as it will be in the future. This may lead to some hesitation from lenders if they feel your income is too low to cover mortgage payments.
However, suppose you’re in a high-demand field with a good salary. In that case, lenders may be more willing to overlook your lack of employment history with your current employer. We can help you find a lender that is willing to work with you based on your unique financial situation.
Credit History Matters
Your credit history is another crucial factor that lenders consider when approving a mortgage application. It demonstrates your ability to make payments on time and the amount of outstanding debt you have.
If you have a good credit score and a history of making payments on time, this can offset the lack of employment history with your current employer. However, suppose you have a poor credit score or a lot of outstanding debt. In that case, it may be more challenging to get approved for a mortgage.
Improving Your Chances of Getting a Mortgage
If you’re worried about getting approved for a mortgage because you’ve just started a new job, there are several ways to improve your chances.
Working with a mortgage broker, like us at Everything Mortgages, can help you understand your options and connect you with lenders who are more willing to work with borrowers with unique circumstances. Applying for a mortgage with a co-borrower, such as a spouse, partner, or family member, can also improve your chances of approval.
Lastly, having all your financial documentation in order, such as pay stubs, tax returns, and bank statements, can give lenders the confidence to approve your mortgage.
At Everything Mortgages, we believe that every Canadian deserves a chance at their dream home. While getting approved for a mortgage when starting a new job may seem daunting, it’s possible with the right preparation and support. Contact us today to start the journey towards your dream home.
Note: This article is intended for informational purposes only and does not constitute financial advice. Please consult a financial advisor or mortgage professional before making decisions about your mortgage.
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