Home Inspection Ensures Peace of Mind

Home inspections are a small price to pay for the peace of mind of knowing you made the right choice when purchasing a home.

Generally, the home inspection should include an inspection and report on the home’s foundation, roof, exterior, interior, attic, insulation, windows, plumbing, heating, and electrical. The purpose of the home inspection is to describe the condition of the house from a professional and objective point of view. The report should identify any problems that exist at the time of the inspection, as well as identify potential problem areas in the future.

There’s no question that the services the home inspector provides can be invaluable. They provide home buyers with the tools to make an informed decision regarding the purchase of the home, and future cost estimates for the repair of the home. Minor flaws, such as chipped paint and nail pops, are typically not included in the home inspection. These tiny defects should be visible and apparent to the buyer and involve little maintenance or repair. Home inspections are intended to identify any major defects, system inadequacies, or safety hazards at the time of the purchase so that the home buyer is not surprised with any unpleasant problems or financial burdens after the purchase.

Determining How Much You Can Afford

Potential purchasers can save valuable time and energy when searching for a home by knowing what they can afford well in advance.

Generally, the rule of thumb when purchasing a home is to ensure that your monthly housing costs do not exceed 32 per cent of your gross monthly income, but many factors come into affect when financing a home.

The most important considerations when buying a home are your gross household income, your credit rating, your down payment and the current mortgage interest rate. Although the CMHC (Canada Mortgage and Housing Corporation) will insure mortgages with as little as five per cent down, most buyers contribute a down payment of 25 per cent of the total purchase price. Most lending institutions finance up to 75% of the purchase price in a conventional mortgage.

To determine the price of the home you will be able to purchase, there is a relatively simple formula to follow. Calculate your maximum down payment and multiply it by four. For instance if your down payment on a property is $40,000, you will be able to purchase a home priced up to $160,000.