What to Know About First-Time Home Buying in Edmonton

Posted by EdmontonRealEstate.ca Team on Wednesday, November 7th, 2018 at 9:15am.

Buying a Home in Edmonton as a First-Time Home BuyerStarter homes are usually the first home that a person or family is able to afford to buy with either savings and a mortgage or just a mortgage. These homes are typically 1-2 bedroom homes, are often older homes and are ideal for singles, newlyweds and young families. Starter homes are usually affordable because they are priced at or below the median price on the local market.

Many first-time homeowners will choose a starter home as their first home so that it will appreciate in value or at least hold its value so they can sell it down the road and have enough equity for their next home.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Several Things for You to Consider When Looking For a New Home

There are a few things you want to take into consideration when looking for the perfect starter home. First, you want to make sure it has enough space for your current needs but also has a bit of growing room in case you are planning to have kids in the immediate future. You should also be sure that you understand that this is a starter home and not your dream home. It is for this reason that you don’t want a home that is above what you can afford.

Edmonton is the capital of Alberta, a province in Canada with a 2012 census population of 877,926 residents. Edmonton is the 2nd largest city in Alberta and the 5th largest city throughout Canada. You will often hear Edmonton residents being referred to as Edmontonians. The city is well-known for not only its large-scale mining operations but also its large-scale oil sands projects.

Edmonton is the educational, governmental and cultural centers of Canada and is home to Canada’s biggest living history museum called Fort Edmonton Park and is also home to North America’s biggest mall called the West Edmonton Mall. Edmonton is often a popular choice to live because of its ideal humid contential climate with low precipitation and mild winters.

Should you buy a Newly Built Home if you're a First-Time Home Buyer?

Since buying a home is one of the biggest decisions you will ever make, you need to be prepared. One of the decisions you will face is whether you should choose a newly built home or a pre-owned home. This can be a difficult decision and there's no cut and dry answer.

Consider Your Finances

The decision always starts with the money. After you go see the local mortgage lender you plan to use and get your pre-approval, you will have a better idea of what you will be able to afford. However, just because the mortgage company pre-approves you for a specific amount doesn't mean you should use it all.

What Type of Home Do You Need?

After you know how much you can afford, the next decision is the type of home you need. Single family homes are often found in subdivisions and provide a large living space. You can also choose between condominiums, duplexes and town homes. These are all a bit different and it's important to weigh the pros and cons of each for your situation.

Why Buy a New Home?

If you think buying a newly built home may before you, it's important to understand the benefits. The home will be very new with a newer design, wiring, plumbing and more. This usually means less maintenance and newer appliances.

Why Buy a Pre-Owned Home?

Pre-owned has plenty of advantages, as well. With a pre-owned home, you will probably start with more equity since the appraised value has already been established. You may also be able to do some renovations, depending on your situation. A pre-owned home tends to be in a more established neighbourhood, as well.

Whether you buy pre-owned or new, as a first-time home buyer it's important to take your time and make sure you get the right choice for your situation. A skilled real estate agent can help answer any questions you may have about the process.

Which Financial Errors are Most Common with First-Time Home Buyers?

When you are a first-time home buyer, you don't want to make a mistake that will hurt your finances. It's common to make a few mistakes, but you can certainly keep them to a minimum. Here are a few of the top mistakes to make sure you avoid.

Mortgage Max Out

It may seem like a good idea, but it's not. You don't want to max out your mortgage as a first-time home buyer. This is dangerous and can make it hard to keep up with the payments.

Make sure you only take what you need for a mortgage and buy a home with a payment you can afford. Just because the bank qualifies you for a certain amount doesn't mean you have to take it all.

Choosing the Wrong Type of Mortgage

The wrong type of mortgage can make owning a home harder on you than it needs to be. Mortgages are not one-size-fits-all and the right type of mortgage can make a huge difference.

A 30-year-fixed-rate mortgage may seem perfect, but it may not be the right choice for you. It depends on your cash flow and your goals. Make sure you work with a trusted mortgage broker or lender willing to help you get the right mortgage for your needs.

Choosing the Wrong Home or Neighbourhood

Another common mistake first-time homebuyers make isn't completely financial, is choosing the wrong home or neighbourhood. This may not seem financial, but if you choose a home in need of repairs, it could quickly become financial for you. The wrong neighbourhood could also mean you spend more to get to and from work and to and from other places you need to go.

Make sure you know what you are getting into and make sure you get a home inspection done. This will help you to avoid any major repairs you cannot afford. It's also important to choose the right location for your new Edmonton home.

Enjoy the Purchase Of Your First Home

These are just a few things first-time home buyers should know. Work with a professional real estate agent and you will be equipped for all the experiences first-time home buyers can expect.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

By Justin Havre

 

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