of Lloydminster

Your Community Minded Realtors

Contact Us Anytime

Office: 780-808-2700
Toll Free: 866-666-2700

RE/MAX Of Lloydminster
5726 - 44 Street
Lloydminster, AB
T9V 0B6

"each office independently owned and operated"

Financing Your First Home

A lot of emotions are involved when preparing to apply for your first mortgage, including excitement, apprehension, joy, and dread. If you do the necessary preparation before diving into the home-buying process, you will experience less stress and fewer concerns. Things have changed since your parents bought their first home, and it's important for the current generation of buyers to perform the necessary groundwork for a great buying experience.

Financing Your First Home

Your credit report plays an important role. The moment the phrase "our own home" drifts through your mind is the time to start preparing. Unless you have perfect credit, the first step in the process is improvement. You are entitled to receive one free credit report annually from the major credit agencies. Requesting one report every four months allows you to monitor your credit all year. The following suggestions provide ways to clean up your credit history.

  • Stop applying for new credit, and keep balances low and current on any credit cards you have. Be sure all payments are made on time.
  • If you have store cards, charge small purchases only when necessary, make payments on time, and pay the full balance each month. Late payments and accounts turned over for collection have a negative impact on your credit score.
  • Get rid of small "nuisance" balances spread over several cards. One of the considerations when your score is determined is the number of cards with balances. Pay off all the small balances, and just use one or two cards for all your credit purchases.
  • Don't worry about good "old" credit on your report. It's beneficial for a potential lender to see good payment habits are practiced.
  • Don't miss a single payment, and don't increase the amount you normally charge. Lenders like consistency, and they look at frequent habit changes as risky.

Get pre-approval before you go househunting. Talking with a mortgage broker to find out how much you can afford before you go househunting will keep you focused on shopping for homes within your price range.

If you follow these suggestions and prepare before you apply for a mortgage, buying a home for the first time doesn't have to be scary.

No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Please note, your email will not be shown publicly
Your Email (will not be published): *
Comment: *
Please type the text as it appears above:
The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.