Preparing to Buy Your First Home
Are you ready to buy your first home? This is an essential question that you must ask yourself while deciding to buy a home. So, to help you, the following are some signs to know if you are ready to buy your first home:
- You already have a place in mind where you see yourself living for the long term.
- You have an idea of what your future looks like and how your lifestyle might change in the future.
- You are financially stable and can manage long-term debt without affecting your retirement plans.
- You are okay to take on the extra costs that come with owning a home.
- You feel that paying a mortgage is much better than paying rent every month.
Things to Decide When Buying Your First Home
Once you know you are prepared to buy your home, the next step is narrowing down your options and understanding what kind of home you want to buy. Here are a few things to consider when buying your first home in Alberta:
- Decide whether you want to buy a condominium or a house.
- Decide whether you want to buy an existing home or build a new one.
- Determine the right neighborhood for your home that fits your lifestyle and budget.
- Decide whether you want to buy the house with or without a mortgage loan.
Saving for a Mortgage Down Payment
If you are taking the mortgage route, you need to start saving up for the down payment. Usually, we recommend paying a down payment of at least CAD 5,000 for a home that costs over CAD 250,000, and the higher the house price, the more your down payment should be. And if you can save more, it is always a good idea as it brings down your mortgage amount and monthly installments. Here are a few tips to save up for a down payment:
- Prioritize your spending
- Make adjustments to your current lifestyle to save up for your down payment
- Earn some extra income to offset your expenses
- Pay off your credit card debts and prepare your credit score to get better interest rates
- Use the Government of Canada’s Home Buyers’ Plan (HBP)
Process of Buying the House
To help you get acquainted with the process, the following is a checklist that you must ideally follow when buying a home:
- Free 30 Minute Consultation with Sohil Lakhani to evaluate your requirements
- Shortlist best options and start viewing the homes
- Make a conditional offer on the Home you liked the most
- Reach out to a lawyer to verify the documents and legality of the process
- Get the final approval for the mortgage
- Transfer the initial deposit to the seller’s brokerage
- Get a property appraisal and inspection
- Transfer the additional deposit to the seller’s brokerage
- Share the documents with the lawyer
- Buy title insurance for your home"