# First time home buyer - Help (mortgage)



## 12345666 (Nov 20, 2014)

Hi there, I am strongly considering buying a condo (withing my budget) but I may not be in the best situation financially (although I have the downpayment, some in cash) since I am a recent graduate and currently unemployed (no doubt that I will be getting a job real soon). I understand the different types of mortgaged however when it comes to the actual process of buying a home including qualifying for a mortgage etc I am a beginner, so here are a few questions:

1-After how long can I qualify for a mortgage after getting a job? Iv heard anywhere from 6 months to 2 years. I am pretty sure that I wouldn't qualify for a mortgage right after getting a job, I was wondering how long after can I qualify for one?

2-As for the down payment, I know for a fact that the down payment funds should stay in your bank account for a specific period of time before being qualified for a mortgage (you cant just deposit all your down payment and qualify for a mortgage the next day). How long is that exactly? Again, Ive heard many answers to this from 60 days to 6 months, but I am not sure which one is correct.

Thank you!


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## none (Jan 15, 2013)

If you don't have a job you have no business buying a condo. Full stop.


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## 12345666 (Nov 20, 2014)

none said:


> If you don't have a job you have no business buying a condo. Full stop.


I am not going to buy a condo right after I get my job. I am going to buy a condo when I qualify for a mortgage (refer to question #1).


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## lb71 (Apr 3, 2009)

1. I've never heard of this requirement. You would need to provide a letter of employment, which would indicate how long you have been employed with your company, and your current salary. Your mortgage application would have a recent job history. Given you are a recent grad, it would be thin. I don't know the effect this would have on your approval.

2. You need to provide evidence of down payment, but it does not have to be in your bank account. A recent statement of your other accounts would suffice. You would just need to give yourself sufficient time to transfer those funds in time for closing the purchase.

You could contact a mortgage broker or visit your bank to see what you need before qualifying for a mortgage.


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## dougboswell (Oct 25, 2010)

12345666 said:


> Hi there, I am strongly considering buying a condo (withing my budget) but I may not be in the best situation financially (although I have the downpayment, some in cash) since I am a recent graduate and currently unemployed (no doubt that I will be getting a job real soon). I understand the different types of mortgaged however when it comes to the actual process of buying a home including qualifying for a mortgage etc I am a beginner, so here are a few questions:
> 
> 1-After how long can I qualify for a mortgage after getting a job? Iv heard anywhere from 6 months to 2 years. I am pretty sure that I wouldn't qualify for a mortgage right after getting a job, I was wondering how long after can I qualify for one?
> 
> ...


Most lenders are looking for 2 years employment with the same company or in the same field. You cannot be in the probation phase when you apply.
Most lenders want to see 3 months financial statements for the account it is coming from ( this is due to anti-money laundering funds policy) 
You are correct in that there is different types of mortgages but the application process is the same.
They also want to see a record of sound money management. They want to see 2 trade lines ie 2 credit cards with minimum $1500 limits or a credit card and line of credit. These are a couple of things that you can do immediately or as soon as you get a job to build your credit record.


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## none (Jan 15, 2013)

I know this is a bit off topic but why on earth would you want to buy a condo immediately after getting a job? Maybe you'll hate the job? Maybe a better opportunity will come up in the next year or so?

I don't think anyone that is without kids should buy a house or a condo if they are under 25. If they do, (I think) it's a signal that their life is a bit boring. The world is a big and wonderful place and our Country is pretty big too. Leave the option to go and explore it rather than saddle yourself with a massive financial chain around your neck!

I'm going to avoid the 'housing is going to crash soon!" argument because I'm not sure if even I believe it anymore but I think most of us would agree that the amount of money you can make from real estate is not what it was 10 years ago and that the difference between renting + saving is likely at least as good as buying and possibily better. If that's true, why rush out to buy?

Anyway, my morning rant. Good day.


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## Mortgage u/w (Feb 6, 2014)

I am a mortgage underwriter so this source is the most accurate.....

Every lender has basic guidelines - 2 year employment history; 1-2 years credit history with 1-2 credit lines well paid; 90 days savings history. Now there are exceptions to all of that and that's where an underwriter like myself comes in and analyses the risk and your potential to qualify.

From what you described, your employment can be an issue....however if you land a permanent full time job with a fixed salary and considered to be in a good domaine (within your field of study for example), then that can be accepted. 

As for the down-payment, the 90 day requirement is for anti-money laundering laws however exceptions are allowed as well. What we see often is the borrower receives a gift from a family member. We will ask the family memeber to sign a gift letter along with proof of funds and this is acceptable.

I strongly suggest you meet with a mortgage broker (a reputable one) and they will be able to inform you and answer all your questions in relation to your current situation.


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## marina628 (Dec 14, 2010)

Get a job and after a month or two go to speak to the people you bank with now.Seeing your pay going into the account and your savings they can give you an idea on your approvals conditions .Personally I think you should work for a year at the same job before considering a purchase as being mobile is very important when first starting your career.This is advise I would give to my own child too and she graduates in April


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## amitdi (May 31, 2012)

12345666 said:


> Hi there, I am strongly considering buying a condo (withing my budget) but I may not be in the best situation financially (although I have the downpayment, some in cash) since I am a recent graduate and currently unemployed (no doubt that I will be getting a job real soon). I understand the different types of mortgaged however when it comes to the actual process of buying a home including qualifying for a mortgage etc I am a beginner, so here are a few questions:
> 
> 1-After how long can I qualify for a mortgage after getting a job? Iv heard anywhere from 6 months to 2 years. I am pretty sure that I wouldn't qualify for a mortgage right after getting a job, I was wondering how long after can I qualify for one?
> 
> ...


everything is negotiable. but i think 1 year would be a good time to wait anyways, because you want to stabilize in your job and that would also make your decision to buy the condo stronger as you would have thought it out for a year.

Off topic: if you are buying because you think buying is cheaper in the long run and/or renting is throwing money away, please re-consider. if you do some research, you will find ton of information proving one way or the other. just make sure you make an informed decision.

My opinion: if you are not planning to start a family, then you should consider renting+saving to build up an equity. I am in the "renting a right sized apt is cheaper then buying a house when you dont need it. buy it when you need it" camp given today's factors (house price, rent, property taxes, etc).


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## OurBigFatWallet (Jan 20, 2014)

Just curious, why the hurry to buy a condo? And is a condo where you want to be long term? Might be better to rent for a couple years (nothing wrong with renting), save up for something bigger that will last you a longer period and allow you to save on CMHC insurance costs by having a bigger down payment


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## Jay (May 9, 2012)

If you are waiting to 'qualify' for a mortgage, the condo you're going to buy will almost certainly not be within your budget to maintain anywhere near the lifestyle you should be as a recent graduate.

As somoene a few years post-graduation with many friends starting to have kids, I will give you this warning...

A fdew of my friends were thinking the same thing you are (about buying a condo in the past few years). Those friends have shoebox sized apartments in fancy buildings in 'up and coming' parts of town, while they are so awash in debt that they can't afford to eat out or take vacations where/when they want to... a depressing way to spend your pre-kids life. Myself and some of my friends who decided to rent have not-quite-as-fancy apartments in 'currently happening' parts of town, have fat investment accounts for our age, and don't think twice about spending money on any kind of trip or vacation across the world (zero debt!). Our rent is a fraction of the costs the condo owners are paying and our investments (where all that money saved goes) continues to grow at a much better rate of return than our real estate friends who have handcuffed themselves to condos, houses and a massive pile of debt.

All that said, I'm not anti-real estate and probably will buy a place sometime.. but it almost certainly won't be a money-pit of a condo.


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