07 December 2022/General
Buying Your First Home in Alberta: All You Need to Know
Alberta is one of the most beautiful places on earth, with beautiful landscapes and spectacular views. The region offers diversity in terms of people, culture, and history.
Buying a house in Alberta means that you have completed all the necessary paperwork and financial dealings. However, the entire process of buying your home in Alberta requires a long-term plan which may include saving your down payments to going through various mortgage demands. For this reason, buying a house is always a significant investment.
Here are our 8 things you need to know when buying your first home in Alberta:
1. Deciding whether you are ready to buy a house
The first step of your house-buying process should be whether you are ready to buy a house for yourself, as it is one of the most significant financial decisions you will ever make. There are certain signs that you should take into account before ruling out that you are ready to become a property holder. The first sign will be that you have a specific locality or an area in your mind for a very long time, and you see yourself settling there. You should have a clear idea about how your life is going to change over the next ten to fifteen years at least. You should be financially settled enough to manage the mortgage payments, and debts and save up for your retirement. You should be comfortable enough to pay the mortgage instead of rent. Lastly, you should have this sense of awareness that your present house is not coinciding with your vision and needs.
2. Compiling a checklist to decide whether you are ready to make a purchase
Before opting for such a huge purchase, compile a checklist to decide whether you can afford the cost of living or not. For starters, your checklist must include your income, your debt-to-income ratio, your down payment, and your credit score. Just keep in mind that if you have a current loan going on, for instance, for a car, it can affect your credit score. Secondly, calculate how much you can afford to buy the right property in Alberta. Lastly, save for your closing cost, down payment, and fee.
3. Saving up for the down payment
You should be able to decide how much you can save up for the down payment while maintaining your lifestyle. You can do this by prioritizing your spending by maintaining a balance between your wants and your needs. You do not need to spend a hefty amount on material goods and learn to practice the art of minimalism. You can also save for the down payment by opting for a side hustle and earn an extra income. Before investing in a property, it is crucial to clear all of your credit card payments, so they do not end up piling up. You can also save up for the down payment by applying for a government-approved home buyers’ plan.
4. Deciding the right type of mortgage rate and term
Once you have decided on your down payment, the next step is to look around for a mortgage lender who can provide you with suitable rates and terms. Make sure that you read all the terms, rates, and conditions properly before finally deciding to work with them. A smart move would be to hire a lawyer who is an expert in these issues so he can help you understand all the terms properly and make a mark on all the dubious clauses.
5. Starting your hunt for the house
After settling down all of your financial requirements, terms, and needs, it is time to begin your house hunting. To start your house hunt, begin by looking around the different neighbourhoods to decide which one will suit you the best. A perfect neighbourhood should include a school, a park, proximity to family and friends, and some shops. After compiling the list of all the services your desired neighbourhood has to offer, start your search. If you are having trouble ticking all the boxes, it is recommended to expand your search. The most popular cities to live in Alberta are; Calgary, Edmonton, Lacombe, Red Deer, St. Albert, and Bonnyville.
6. Making an offer on the house
After you have decided on your perfect neighbourhood and the house you would like to buy, the settlement process may begin to pick up speed. You should first and foremost make an offer on the house that you are interested in purchasing. Opt for both conditional and unconditional offers. Remember to request for property appraisal as well. Once the offer has been approved, quickly move to finalize your mortgage plan.
7. Requesting an inspection
After the house you want to live in has been decided, request a home inspection before making the final payment. The inspection will help you in changing the final price of the house depending on the findings during the process. Once that has been done, bring your real estate lawyer into the picture to make the down payment and transfer the title of ownership. The entire process will take no more than two months.
If this is your first time buying a house, there may be a few challenges you will end up facing. The governments of Canada, both federal and provincial, have developed certain plans to ease the process of house buying for first-timers. If you are buying a house for the first time in Alberta, the government has made you eligible for the following programs:
Home buyer’s plan
The home program
First-time house buyer incentive
If you have not organized your house-buying process properly, then purchasing a new property can become extremely difficult. Educating yourself on various terminologies related to real estate is essential so you can understand the entire process and proceedings thoroughly.
8. Choose a Secure and Affordable Self-Storage Service
There is no better feeling than receiving keys to your first home ever! That challenging journey is all worth the wait and struggle. Now that you’ve sorted everything and are ready to move, U•STORE•IT is here to help you. How can we do it? Just let us know the stuff to move, and we will take care of the rest. Contact us now and reserve your self-storage today at reasonable rates.