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Are you looking at buying a home in the Edmonton area, but not quite sure how to get started? No worries! I’m here to help. Here’s a general overview on how to buy a home in Edmonton.
Step 1 – Prepare Your Finances
I know you’re probably watching HGTV and dreaming of that giant island in your kitchen and a spa like bathroom, but before you get going too far it’s important to sit down and budget – I know, HGTV dreaming is much more fun. Start with understanding your monthly expenses. Maybe budgeting isn’t your strong suit and that’s ok! Leave it to the pros! A mortgage broker can help determine if you’re financially ready to purchase a home.
Mortgage brokers and banks will look at things like
- your income (before taxes)
- your expenses (including utilities and living costs)
- the amount you’re borrowing
- your debts
- your credit report and score
- the amortization period
In general, your total monthly housing costs should not be more than 35% of your gross household income.
Don’t forget to budget in items like your down payment, which is minimum 5%, your deposit, and closing costs.
Step 2 – Choose Your Realtor
Now that you’ve prepared your finances you should have a better understanding of what you’re able to purchase, so it’s time to find an agent!
It’s ok to interview a few different agents to make sure they are the right fit for you. You are purchasing a huge investment in your life, it’s important to have someone that is in your corner!
Step 3 – Start Shopping
It’s a great idea to make a list of your wants and needs in a home – truly think about how you live. Your realtor will likely have questions for you to gain a better understanding of your needs as well. Once you have your list, it’s time to book some showings! Be sure that your realtor sets you up on a search based on your criteria, that way you’ll be notified immediately if there’s a new match! You don’t want to miss out!
Step 4 – Making an Offer
Before getting too serious on a property, it’s always a good idea to look at the details like:
- Real Property Report: this will show property boundaries, improvements, and evidence of municipal compliance.
- Pulling Title: this will show who owns the property, as well as any encumbrances, easements or right of ways.
- Historical Listing Search: this will show the listing history of the property.
- Address Search: an internet search of the address to find out if there are any stigmas associated with the property.
Once you’re ready to make the offer, make sure to put in all the terms and conditions that you’ll need – things likes subject to a property inspection and financing.
Depending on the market at the time, the level of negotiations will fluctuate.
Step 5 – Waiving Conditions
If your offer had conditions, now is the time to get those resolved. Common conditions are financing and property inspections. You’ll have a certain timeframe that was agreed to in order to satisfy the conditions. Once you’re confident and satisfied with the results, then you can move forward with removing the conditions. Once you’ve removed conditions, you have officially bought the home.
Step 6 – Possession Day
Yay, it’s the time you’ve been waiting for, possession day! We’ll do a final walk through of the home to ensure the property’s condition.
If you’re looking for more information, or a more indepth look at some of the things that were mentioned, be sure to check out my Buyer’s Guide. Also, feel free to send me a message, I’m always happy to help!