Buying Your First Home
Buying Your First Home
Buying a home is a big decision – and a big financial responsibility. It is probably the single biggest investment that you will make. With such a big investment, it is important to take some time to learn about all aspects of owning a home before making a decision.
Six steps to buying your first home( from GetSmarterAboutMoney. ca)
1. Save for your down payment.
The down payment is the amount of money you deposit when you first buy your home. It must be a minimum of 5 % of the purchase price, but can be more. The down payment will help determine how much you need as a mortgage loan, and whether or not you will have to pay mortgage default insurance, which is required if you have a down payment of less than 20 % of the purchase price.
2. Make sure your credit report is in good shape.
Photo credit jessicafm via VisualHunt. com CC BY-ND
To qualify for a mortgage, you will have to pass a credit check. Order a copy of your credit report and check it for errors.
You can order a copy of your credit report from: Equifax 1-800-465-7166 and TransUnion 1-800-663-9980
Both agencies offer free credit reports by mail. The reports are available online but you will have to pay a fee.
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