If you’re about to jump into homeownership, it’s imperative to understand the key things to avoid doing when purchasing a home. Be sure you’re not making these three big mistakes that most first-time homebuyers often make and end up regretting afterward.
Skipping Out on the Home Inspection
With fierce competition in some Canadian markets, sellers want to settle fast. And in many situations, this often means skipping out on the home inspection as part of the conditions. But we must warn you that agreeing to purchase a property without having a professional inspect the house first, more often than not, results in more headaches and frustration down the road. The home inspection can reveal critical information about the condition of the home and what repairs it may need in the short and long term. If red flags come up during the inspection, like hazardous mould growth, illegal installations, unsafe materials, or severe damage that could cost a significant amount of money to repair, it gives the buyer a chance to back out of the deal. Without a home inspection, you could be left footing a hefty bill for repairs right after you purchase.
Going to a Lender Directly
One of the biggest mistakes people make is going to the lender directly instead of talking to a mortgage broker. If you’re considering going to the same lender that your family or friends have recommended – you could end up paying higher fees and entering into an agreement that favours the lender rather than yourself. If you want the best rates, you need to use a mortgage broker who has access to a range of lenders and their products. They’ll shop around for you to find the best rate and conditions based on your lifestyle, income and financial situation.
Relying Solely on Your Agent
Your agent may be a professional in real estate sales and negotiation, but they may not be experts at contract law. In fact, many agents only use a standard contract but rarely is that enough to cover all the clauses and special conditions. And all it takes is one mistake for the contract to be void or for a lengthy and costly legal situation to arise. That’s why it’s essential to hire a lawyer to review all your contracts before you sign on the dotted line. A lawyer can check the title of the property, search for any outstanding mortgages, liens or encumbrances that would impact the deal, ensure that all conditions are met, handle any last-minute disputes, and check that the clauses in your contract are in your best interests (not the sellers). In short, they’ll help you avoid any common problems that could arise and ensure you don’t have to deal with any legal situations that could cost you the home or your hard-earned money.
When purchasing a property, you can’t afford to have your rights put at risk. Our legal team at Accord Law will ensure that you get the protection and legal support you need when purchasing a home. Our team will also work with your budget – we never charge hidden fees or excessive costs – you’ll get honest and transparent service. Contact us today to set up a consultation!