The Complete Guide to Buying Your First Home in Fredericton, NB
Buying your first home is exciting, but if you’ve never been through the process before, it can also feel like there’s a lot to figure out. How much do you need for a down payment? When should you get pre-approved? What happens after your offer is accepted? And how do you know if you’re making the right decision?
The good news is that you don’t need to know everything before you start. Having the right people in your corner and understanding the basic steps can make the process much easier.
If you're thinking about buying your first home in Fredericton or the surrounding areas, here's what you can expect from start to finish.
Step 1: Start With a Mortgage Pre-Approval
Before you start scrolling through listings and booking showings, one of your first steps should be speaking with a mortgage professional.
A mortgage pre-approval helps you understand approximately how much you can afford and what your monthly payments could look like. It also allows you to focus your home search on properties that realistically fit your budget.
Keep in mind that the maximum amount you're approved for doesn't necessarily have to be the amount you spend. Think about what monthly payment feels comfortable for your lifestyle and leave room in your budget for the other costs that come with homeownership.
If you don't already have a mortgage professional, I have a list of trusted local mortgage advisors I recommend and can help connect you with someone to get the process started.
Step 2: Know How Much Money You'll Need
Your down payment isn't the only upfront expense to plan for when buying your first home.
Depending on your purchase, you'll also want to budget for expenses such as:
Your deposit when making an offer
Home inspection
Legal fees
Property tax adjustments
Moving expenses
Home insurance
Other applicable closing costs
There are also programs and incentives that may be available to qualifying first-time home buyers. Your mortgage professional and REALTOR® can help point you in the right direction based on your situation.
Knowing these costs ahead of time means fewer surprises as you get closer to closing day.
Step 3: Find a REALTOR® You Trust
As a buyer, your REALTOR® is there to guide you through the entire process, not just open doors for showings.
When I start working with a first-time buyer, I like to go over the buying process before we start seriously looking at homes. That way, when the right property comes along, you already understand what an offer looks like, what conditions may be included and what happens if your offer is accepted.
I also provide my buyers with a Home Buyer's Guide that they can refer back to throughout the process. It breaks down the different stages of buying a home and gives you something to reference when questions come up along the way.
Your REALTOR® can also help you understand recent sales, evaluate a property's asking price, identify potential concerns and create a strategy when it's time to make an offer.
Don't be afraid to ask questions. You're not expected to know how all of this works, that's what we're here for.
Step 4: Decide What You're Actually Looking For
This is the fun part!
Before starting your search, think about your wants VS your needs.
Consider things like:
Location
Number of bedrooms and bathrooms
Yard size
Commute to work
Finished or unfinished basement
Garage or parking
Renovated vs. something you can improve over time
Proximity to schools, trails, shopping and other amenities
You may find that your priorities change once you start viewing homes in person, and that's completely normal.
Step 5: Start Viewing Homes
Once you're pre-approved and know what you're looking for, it's time to start touring properties.
Online photos are great for narrowing down your options, but they don't always tell the whole story. Seeing a home in person gives you a much better understanding of the layout, condition, neighbourhood and overall feel.
When we're viewing a property, I'm not just looking at whether you like the kitchen or the paint colours. We're also paying attention to the bigger picture, the condition of the home, potential resale considerations and anything that may need further investigation.
And don't worry if you don't fall in love with the first few homes you see. Sometimes seeing what you don't want makes it much easier to recognize the right home when it comes along.
Step 6: Making an Offer
You've found a house you love. Now what?
Your REALTOR® will help you put together an Agreement of Purchase and Sale and discuss the different parts of your offer.
An offer can include things like:
Purchase price
Deposit
Closing date
Included items
Financing condition
Inspection condition
Other conditions specific to the property
There isn't one offer strategy that works for every house. The right approach depends on the property, recent comparable sales, current market conditions and whether you're competing with other buyers.
I'll walk you through your options so you can make an informed decision without feeling pressured into offering something you're uncomfortable with.
Step 7: Your Offer Is Accepted — Now What?
Getting the call that your first offer has been accepted is one of the best parts of the process!
But there are usually still a few things to complete before the sale becomes firm.
If your offer includes conditions, this is when you'll work through them. That could include finalizing your financing, completing a home inspection or satisfying another condition included in your agreement.
A home inspection is particularly important. Your inspector will take a closer look at the home's major systems and components and help you better understand the property you're purchasing.
Depending on the home, there may also be additional considerations involving things like a well, septic system, wood stove or other property specific features.
If you aren't sure who to call for an inspection, I can help with that too. I keep a list of trusted professionals that I recommend to my buyers, including home inspectors, mortgage advisors, lawyers and other professionals you may need throughout your purchase.
You always have the choice of who you work with, but having a list of trusted local contacts can make finding the right professionals much easier, especially when it's your first time going through the process.
Once all conditions have been satisfied and removed, the sale becomes firm.
Step 8: Getting Ready for Closing Day
Once your purchase is firm, you'll work with your lawyer and mortgage professional to get everything ready for closing.
You'll arrange your home insurance, complete the necessary paperwork and make sure the funds required for closing are ready.
We'll also complete a final walkthrough of the property before closing to make sure it's in the expected condition.
Then comes the moment you've been waiting for: getting the keys to your first home!
You Don't Have to Figure It Out Alone
Buying your first home is a huge milestone, and it should be something you're excited about, not something you feel like you have to navigate on your own.
My approach with first-time buyers is education first. I want you to understand what you're signing, why we're making certain decisions and what to expect at every stage of the process.
Whether you're hoping to buy in the next few months or you're just starting to think about homeownership, it's never too early to start asking questions and putting a plan together.
Ready to Start Your Home Search?
If you’re thinking about buying your first home, I’d love to help. Let’s chat about your goals and get you one step closer to homeownership.
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