Advice for First Time Home Buyers

About Meadows Of Morinville | September 12th, 2018

Our homes are really attractive for buyers in the Edmonton marketplace and it is a great time to buy! Our attractiveness isn’t just because we have great homes in a beautiful neighborhood, but also because the house prices, down payments and overall monthly costs are significantly lower than what you might pay elsewhere.

Getting into home ownership is probably easier than you think. Here are a few of our recommendations just to get you started:

  • You can never start saving soon enough. Your parents have probably been telling you that for years – they’re not wrong. Save as much as you can and start as early as you can. Other sources of down payments could be a gift from your parents, an existing line of credit or you can borrow the down payment from your RRSPs.
  • Get pre-approved. Online mortgage calculators will never take the place of a professional Mortgage Specialist and it’s not enough that you think you know what you qualify for. Avoid disappointment and determine what your actual budget is right from the get go. We have some terrific lenders that will work with you to get you into home ownership, at our preferred builder rates.
  • Avoid New Debt. Surprisingly, this is less obvious than you might think. Hold off buying anything you don’t need or can’t pay cash for without depleting your savings. Specifically, try to avoid big vehicle payments, they’ve dashed more than one person’s dreams of home ownership.

 

  • Understand the process. In very simple form – here are the steps:
    • Save for your down payment (typically you will need 5% down)
    • Get pre-approved, then go shop for your house
    • Write the contract for your house, conditional to getting your financing approved
    • We’ll send the contract to your banker who will then submit it for final approval
    • Bank approves the financing
    • Remove conditions on the contract and provide us with your down payment
    • Sign paperwork with banker & lawyer
    • Organize utilities, movers and house insurance
    • Possession day – move all your stuff in
    • Live happily ever after
  • Have an Emergency Fund/Closing Costs. You will have closing costs. You may have emergencies, it’s best to be prepared for both. Closing costs are the extras that won’t be included in your mortgage (the money  you are borrowing to buy the house).
    If you buy in Meadows of Morinville, closing costs are quite minimal. Closing costs would include things like lawyer’s fees (our lawyer offers $550 flat rate for legal fees), adjustment for property taxes (you will owe the seller for your share of the taxes, which would be from the possession day until December 31st) and an adjustment for the monthly lease rate.

Want to know more? We’re happy to help! Just give us a call at 780.572.0800, or text 780.984.6009 or email sales@meadowsofmorinville.com

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