How/who should I ask for advice to improve my mortgage approval prospects?


I’m a recent college graduate with a good degree, employed full-time, and a mid-740s credit score. I’m interested in buying a house, mostly because of the expense and hassle of renting. Unfortunately I don’t think I would be approved right now due to short credit/employment histories, lots of student loans, etc. What would be the best way to get specifics of what I should work on, or what milestones to reach before buying?


A good mortgage banker can help you figure out your options. Generally you want to have 2 open and active trade lines, and if you are making payments on student loans that may be sufficient. With your credit score you should have mortgage options (not a jumbo loan though…) as long as your total monthly debts (all loans and credit card payments, any child support, etc) plus the new mortgage payment will not be more than 50% of your gross (before taxes taken out) income – as long as YOU are comfortable with the payment fitting your budget.

Downpayment requirements generally start at 3-3.5% of the purchase price (except for VA and Rural Dev. loans) and ideally you should have reserves (month left over after paying the downpayment) at least equal to 2x what the monthly mortgage payment will be. Because you were in college prior to starting work, the length of time you’ve been on the job shouldn’t be an issue as long as you have been working a couple months and have regular pay check stubs.

There is lots of information out there on a number of web sites such as or one of the mortgage insurance company sites like and there is quite a bit of information if you check out my website. I can lend in most any state when you are ready to move forward, or I can help you find the someone from my company closer to you.

Good luck!

Answered over 4 years ago
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