If you are looking to purchase your first-ever home, congratulations! This is both an exciting and thrilling time for you. Because you will be competing with many other homebuyers in Edmonton, it’s important to be familiar with the process of buying a home, and although this article doesn’t cover everything, it will help you get a feel for what you can expect and what you should be prepared for.
Determine your budget.
Before you even begin looking at houses, you need to understand your budget clearly. Understanding your financial situation before being a homeowner is critical, and it sets the foundation for your search, helping you make informed decisions. Assess your income, debt, monthly bills, etc., and figure out what exactly you can afford to spend on your down payment and your mortgage while also budgeting for repairs, maintenance, closing costs, etc. Once you have determined your budget, you can start looking at homes within your price range, saving you time and avoiding falling in love with a house you can’t afford. Establishing your budget upfront allows you to confidently approach the process as a home buyer in Edmonton, helping you focus on properties that are a natural fit for you and your financial situation.
Get pre-approved for a mortgage.
Before you search for your dream home, you will want to get pre-approved for a mortgage; this involves providing your financial information, such as income, debts, and credit history, to the lender, who will then evaluate your eligibility for a mortgage and determine the maximum amount they are willing to lend you. By getting pre-approved, you gain several advantages. First, you know your budget and how much you can comfortably afford to spend on a home, helping narrow your search and saving time by focusing on properties within your price range. Second, pre-approval shows your seriousness as a buyer to sellers, making your offers more competitive. It strengthens your position during negotiations and increases the likelihood of your offer being accepted. Getting pre-approved for a mortgage provides financial clarity and a competitive edge when you are ready to purchase a home.
Take advantage of the First-Time Home Buyer Incentive.
The First-Time Home Buyer Incentive assists first-time homebuyers in reducing their monthly mortgage payments without adding to their financial responsibilities. This incentive is a shared-equity mortgage with the Government of Canada, which offers:
- 5% or 10% for a first-time buyer’s purchase of a newly constructed home
- 5% for a first-time buyer’s purchase of a resale (existing) home
- 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home
You can get more information on the First-Time Home Buyer Incentive here!
Get a home inspection.
Although some homebuyers in Edmonton are tempted to skip the inspection, it is a critical part of the purchase process. A home inspector’s job is to evaluate potential safety concerns, hazards, or property violations, and they will notify you of any red flags that could come up. After that, it’s up to you to decide whether you’d like to move forward with the property. Identifying any potential issues with the property allows you to negotiate repairs with the seller. If your inspector makes you aware of any poor structural designs or leakage in the basement, for example, you can expect to incur high costs later. Investing in a professional to inspect a house may cost you money now, but rest assured that it will save you money in the long run.
Hire an Edmonton REALTOR®.
Working with an Edmonton real estate agent you trust and feel confident in makes all the difference in the world! The job of your REALTOR® is to help you find a home, negotiate on your behalf, and guide you through the entire process, making your life as an Edmonton home buyer much easier. Their guidance is invaluable, as the complex real estate market demands knowledge and experience. The great news about buying is that there are no fees to pay your REALTOR®, as the buying agent splits the commission with the seller’s agent, meaning the seller pays the commission. Realty Unleashed would love to help you find your first-ever home!
Working with Realty Unleashed!
Realty Unleashed is an independent brokerage serving Edmonton and Calgary. We are committed to helping our clients every step of the way, making the homebuying process as seamless and stress-free for you as possible. Our mission from day one has been to change what you expect from your REALTOR®. If you are embarking on the exciting journey of buying your first home and need an Edmonton REALTOR®, we would love to hear from you! Please fill out the form below, and someone from our team will get back to you.