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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