The Steps to Buying Your First Home

What Can You Afford?

Before you can start building, you need to know exactly how much you can afford to spend. Getting a mortgage pre-approval will let you know exactly how much you can borrow from your bank or mortgage lender, so you’ll be able to accurately set your budget and avoid any nasty financial surprises down the road.



Set your budget

Once you know just how much you can borrow, it’s time to determine your budget. Naturally, this will vary from person to person, and it’s important to keep in mind that there will be extra closing costs once you’ve bought your home. 



Know Your Credit Score

Your credit score is extremely important in determining how much your mortgage lender is willing to loan you. Ideally, you should work on getting your credit score as high as possible before you start looking for a mortgage, which includes lowering your debts as much as possible. 



Budget For Extra Costs

The cost of the home and the closing costs aren’t the only things you’ll have to budget for – you’ll also need to be aware of a few extra budget items. Some of them are one-time costs and some are ongoing, so make sure you have enough cash flow to cover them and look into setting up an emergency fund. 



Think About What You Need

Before you start looking for a community, you should know what you want from your neighbourhood. Do you need to be close to work? Would being close to your kids’ school make your life easier? Are you looking for the peace and quiet of the suburbs, or plenty of green space?



See What’s Available

Once you know what you’re looking for, the first thing you should do when choosing a community to live in is to see which areas your chosen builder is currently building in. 



Consider Amenities

Different Neighbourhoods will have different amenities and services to offer, so it’s important to consider which features are essential to your lifestyle. Having shops or services you use frequently right on your doorstep can be a huge advantage. 



Check Out Available Models and Floor Plans

Now that you know where you want to live, it’s time to start thinking about the home itself. At Sterling, we build a huge range of models and floor plans for all needs, so you’re bound to find something that’s the right fit for you and your lifestyle.

Choose a Design That’s Right For You

As a first-time homebuyer, you’ll probably have different needs from, say, a multigenerational family or a property investor. You don’t want to end up with a house that’s too big or too expensive when you’re starting out, so consider your wants and needs carefully.

Familiarize Yourself With The Terms

Once you’ve found your perfect home, you’ll need to start thinking about the financing, before you begin, it’s helpful to familiarize yourself with some of the terms and concepts you’re likely to run into. 



Get Your Down Payment in Order

The first stage of financing your home is putting down your down payment. The amount you’ll need can vary depending on the price of your home and how much you want to spend upfront – the minimum is 5% of the cost of your home, but you can put down 10% or even 20% if you wish.



Help Is Available For First Time Buyers

There are a number of government programs available designed to help first-time buyers, so consider looking into these to see if they’re right for you.



Speak To Your Mortgage Lender

Once your down payment is on order, it’s time to speak to your lender to begin the mortgage approval process. This will let you know exactly how much you’ll be able to borrow so you’ll be able to finalize your plans. 



Pick Your Colours and Finishes

At certain points during construction, you’ll be able to make some decisions about the design and layout of your home. You can take a look at our colour board visualizer for choosing the look of your home, and you’ll be able to visit our DesignQ workshop to browse a huge selection of finishes and decorations, such as blinds, draperies, and wall features. 



Building Your Brand-New Home

Once the finances are taken care of and design choices are made, construction can finally begin! The process for building a brand-new home can take several months (especially in Edmonton, where winter weather can be a big factor).



Accessing Your Mortgage

Depending on the type of mortgage you opt for, at certain milestones during construction your builder may require access to certain funds. There are distinct advantages and disadvantages to draw and completion mortgages, so make sure you do your research into which is the best option for you.
 


Regular Check-Ins

As your home is being built, your New Home Advisor will be in contact regularly to update you on the progress of the construction, schedule walkthroughs and provide video updates so you’ll know everything’s on track.



Arrange Your Move

Once the construction process is finished, you’re ready to move in! The next step is to organize movers and begin enjoying your brand-new home. 



After You’ve Moved In

Once you’re moved in, your Home Care Specialist will be in touch regularly to ensure you’re satisfied with your new home, and you’ll be able to rest easy knowing that your home will be covered for up to 10 years with a New Home Warrant in case there are any issues.