Buying a home can feel complicated, especially if it’s your first time.
There are mortgages, showings, offers, conditions, inspections, lawyers, possession dates and plenty of unfamiliar terminology along the way.
But once you understand the basic steps, the process becomes much easier to navigate.
If you’re thinking about buying in Spruce Grove, Stony Plain, Parkland County or elsewhere in the Edmonton region, here’s what the home-buying process generally looks like from beginning to end.
Watch: The Home Buying Process Explained
Prefer to watch rather than read? In this video, I walk through the basic home-buying process, from getting pre-approved to receiving the keys to your new home.
1. Start With a Mortgage Pre-Approval
Before you begin seriously looking at homes, one of the best things you can do is speak with a mortgage professional.
A pre-approval helps you understand:
- Approximately how much you may be able to borrow
- What monthly payment may be comfortable for you
- How your down payment affects your options
- What price range makes sense for your search
This isn’t just about finding out the maximum amount a lender may approve.
Your personal budget matters too.
There can be a big difference between what you can borrow and what you’re comfortable paying every month.
If you’re worried that you need a 20% down payment before buying, that isn’t always the case. Depending on the purchase price and your circumstances, insured mortgage options may allow eligible buyers to purchase with a smaller down payment.
A qualified mortgage professional can explain the financing options available to you.
2. Decide What Actually Matters to You
Once you understand your budget, the next step is figuring out what you’re looking for.
That includes the obvious things:
- Price range
- Number of bedrooms
- Number of bathrooms
- Home style
- Garage
- Yard size
But I also encourage buyers to think beyond the house itself.
Consider:
- Your commute
- Schools
- Recreation
- Shopping
- Neighbourhood style
- Future family needs
- How long you expect to live there
- Maintenance you’re comfortable taking on
Sometimes buyers begin their search convinced they want one neighbourhood or type of home and discover that something completely different fits their lifestyle better.
If you’re comparing communities west of Edmonton, my Spruce Grove vs. Stony Plain: Which Community Is Better for You? guide can help you think through some of those differences.
3. Start Looking at Homes
Now the fun part begins.
We’ll start reviewing listings that match your priorities and arrange showings for the homes that make sense.
Online listings are useful, but they don’t tell you everything.
Once you’re inside a home, pay attention to things such as:
- Layout and room sizes
- Natural light
- Storage
- Overall condition
- Noise
- Parking
- Yard and exterior
- Neighbouring properties
- How the location feels
A house can look fantastic in photographs and feel completely different in person.
The opposite can happen too.
Try not to judge a property entirely from the listing photos.
4. Make an Offer
When you find a home you want to purchase, the next step is preparing an offer.
An offer involves more than simply deciding how much you’re willing to pay.
It can include:
- Purchase price
- Deposit
- Possession date
- Included or excluded items
- Financing condition
- Home inspection condition
- Other terms specific to the property or transaction
The seller can accept your offer, reject it or make a counteroffer.
This is where having good information about the property, comparable sales and current market conditions becomes important.
The goal isn’t simply to “win” the negotiation.
It’s to reach an agreement that you’re comfortable with and that makes sense for the property you’re buying.
5. Work Through Your Conditions
If your accepted offer contains conditions, you’ll have a set period of time to satisfy them.
Two common conditions are financing and home inspection.
Your mortgage professional will work through the financing details and confirm whether the property and mortgage meet the lender’s requirements.
A professional home inspection can help you better understand the condition of the property and identify issues that may require attention.
Depending on what you learn during the conditional period, there may be additional questions or decisions to make before proceeding.
Don’t feel pressured to remove conditions before you’re comfortable doing so.
6. The Sale Becomes Firm
Once all conditions have been satisfied and removed, the sale generally becomes firm.
At this stage, you’ve committed to purchasing the property according to the terms of the agreement.
There is still work happening behind the scenes, but the uncertainty of the conditional period is over.
Your REALTOR®, mortgage professional and lawyer each have different responsibilities as the transaction moves toward possession.
7. Your Lawyer Handles the Legal Transfer
Before possession, you’ll meet with your lawyer to complete the legal side of the purchase.
Your lawyer will typically deal with matters such as:
- Reviewing the purchase documents
- Mortgage documentation
- Transferring funds
- Title and registration
- Property tax adjustments
- Other closing requirements
Your lawyer will tell you what documents, identification and funds you need to provide before closing.
It’s a good idea to deal with these requirements early rather than waiting until the last minute.
8. Prepare for Possession Day
As possession approaches, there are several practical things to organize.
These may include:
- Home insurance
- Utility accounts
- Internet and other services
- Moving arrangements
- Address changes
- Planning for keys and access
You’ll also want to make sure you understand exactly when possession occurs.
The possession date doesn’t necessarily mean you’ll receive the keys first thing in the morning. The legal transfer and release of keys need to occur according to the terms of the transaction.
9. Do the Final Walk-Through
Before possession, we’ll normally complete a final walk-through of the home.
This isn’t another home inspection.
It’s an opportunity to confirm that the property is generally in the condition expected and that agreed-upon items remain with the home.
If something unexpected appears, we can determine what needs to happen next.
10. Get the Keys
Then comes the part everyone has been waiting for.
Once the legal requirements are complete and possession has been released, you receive the keys.
The home is yours.
There may still be boxes everywhere and a long list of things to organize, but you’ve made it through the buying process.
You Don’t Have to Know Everything Before You Start
One of the biggest misconceptions I see with first-time buyers is the feeling that they need to understand the entire process before speaking with anyone.
You don’t.
That’s part of what your REALTOR®, mortgage professional, lawyer and other professionals are there to help with.
Your job is to ask questions, understand the decisions you’re making and make sure you’re comfortable before moving forward.
My job is to keep you informed,