Buying your first home is one of the most exciting times of your life. Probably as exciting as getting your first car. Well, just like buying a car you want to shop around and how you do this will make a huge difference. A wonderful opportunity can very quickly turn into money out the door. Your front door to be exact.

Before you even start looking a homes you need to be prepared. This is done in several ways. First take a look at your credit. Equifax Canada and Transunion are two reporting agencies that lenders use to see your credit history. They want to see what kind of credit risk you are and they will look at your payment history, the type of credit you use and how much of it you use and all this determines your credit score.

A credit report in your name is established once you are given credit. It contains your personal information and your own credit score – kind of like a “credit” report card. It is highly confidential and the contents need to be protected to prevent you from identity theft.

Want to know your score – go to www.equifax.ca or www.transunion.ca and pay for a report that will show your score. Also make sure all your personal information is correct including where you have applied for credit. The other thing you can do is find an Accredited Mortgage Professional. We receive specialized training in this area so we can help you with this as well.

In the mean time my advise to you is to pay your bills on time and never charge more than 60% of your credit limit. Your credit score is like gold and needs to be treated with respect. If you are late paying the minimum payment on a $2000 visa bill why should a lender give you $200,000 for a mortgage? Makes sense when you look at it that way.

“Getting ready to buy your First Home” tips will continue next week. Look for it!

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