Buying your first home can be an experience filled with both excitement and anxiety. Sometimes time can be an overwhelming and intimidating process. But it doesn't have to be. If you do your research, you can alleviate some of those first-time home buyer fears and make the process go more quickly and smoothly.

Most people prefer to have a mortgage specialist to guide them every step of the way, to answer all their questions and to offer them practical advice.

You have to determine how much you can afford, how you can get into the market with a low down payment and how to possibly use your RRSP as a part your down payment.

Few tips before you apply

Don't build yourself a mortgage mountain.

It's fine to want the best home you can afford, but be certain that it is comfortable affordability. Although we may find certain mortgage lenders who will stretch your qualification ratios (the ratio of your total mortgage payment to your total income), the traditional ratios--the mortgage payment as 28% of your income and the total of your mortgage payment plus your monthly debt payments as 36% of your income - are good basic guidelines.

Get your budget under control.

Spending some time reviewing your budget (or developing one if you don't already have it) and sharpening your money saving skills can bring big rewards later. A coordinated budget allows you to get the most home for your money without strapping yourself while eliminating wasteful spending.

Prepare to pay off small debts.

Having 3 credit card balances, for example, one with a $125 balance, a second with a $165 balance and a third with $275 balance will only cloud the picture. Even though the total is only $565, all 3 will have minimum payments, credit lines, etc. If possible, prepare to pay them down to $0 balances.

Begin to gather documentation.

It is not necessary that you have all items on hand before you apply, but there are a number of documents you will need eventually and the approval process will go much smoother if you begin to gather them now. Examples: income tax returns from the last few years (especially if you are self-employed), copies of pay stubs, a copy of your credit report (you can get a free copy of your credit report), records of any child support or alimony (either going out or coming in) and bank statements for all accounts (checking and saving) for the last several months.

Don't forget about closing costs.

In addition to your down payment, you will need to reserve funds for closing costs. Depending on the type of loan and your location, these costs can range from 2-5% of the mortgage amount, will be paid in cash at the closing and cannot be borrowed funds. One of our lenders offers with your mortgage application no fee Credit Card (with 1% cash back) and let you use 50% of your limit to pay for closing costs.

Compare.

There are lots of sources and options for mortgage funds. At the First Swiss we shop for the best solution among more than 40 banks and lending institutions and make comparisons of equal terms. We are available in Toronto, Mississauga, Brampton, Oakville all GTA, Ontario and across Canada. Located at 4576 Yonge Street 2nd Floor just North of Hwy 401.