So you’re dreaming of buying a home but you don’t know where to start. You can view homes for sale all day and night online, but how do you really start the process of finding a home. Well, first you need to know what you can afford. You can save and save but the mortgage broker determines how much you can borrow. Before you meet with a mortgage broker, a good thing to know is your credit score. If you are couple, then there are two credit scores that you will need to get. This score can affect how much of a mortgage loan you will receive. The bank will be looking at your paper profile up and down before they deem you responsible and financially secure enough to own a home and pay a mortgage. So, find out your credit score so that you are feeling more confident when you walk into the meeting.
Some experts say that a free credit report always comes with a hassle and to get a secure report you will most likely pay $7–$16. Be mindful of signing up for accounts that may have hidden reoccurring fees. Best, to get your score from multiple places as well because if multiple agencies show no errors or “all goods” you are in the safe zone.
A useful site is annualcreditreport.com. At that site, you’ll be able to get a report three times a year – one each from Equifax, Experion and TransUnion. The report is free, but to get your actual credit score you will pay a fee.
There is a proposed new law, that you’ll be able to get a free score only if you’re turned down for an insurance policy or a loan, or given a higher premium for insurance or higher interest rate on a loan based on your credit. The score you’ll get is the raw score with no backup data. There was too much lobbying against free scores to everyone for such a proposal to become law.
While this information is written to be helpful and personal opinion everyone’s mortgage hunting experience is unique. You can contact Jen Colahan for more information.