Author Archives: MyClosingCosts

How to Become a Home Inspector in Toronto

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Home Inspector in the Basement

Flickr: whiteknuckled

If you’re a homeowner, you’ve probably dealt with a home inspector or two before. Home inspectors play an important role in the home buying process – they provide buyers with a detailed report on the condition of a home, which can either make or break a deal. While it’s nice to rely on the expertise of a home inspector, have you ever thought of becoming one yourself? If you have an eye for detail, you enjoy fixing things and you’re a people person, home inspection might just be the career for you.

The Home Inspection Industry

With the exception of British Columbia and Alberta, the home inspection industry is unregulated in Canada. You can become a registered home inspector through the Ontario Association of Home Inspectors (OAHI), but it is not a requirement to setup your business. Although Ontario is currently looking at bringing in tougher standards, currently no certification is needed and no mandatory standards have to be met or maintained to call yourself a home inspector. As a result, becoming a home inspector in Toronto is fairly easy. Knowing that, it still pays to have some sort of experience. Whether you used to work in construction, or you have experience buying and selling homes, knowing the ins and outs of how a home works will help you become a reputable home inspector. Continue reading →

What is a Home Appraisal?

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Sold Home in Ontario

Flickr: clvrmnky

An important, but often overlooked, part of buying a home is the appraisal. Unlike a home inspection, which helps you decide if you want to buy a home or not, a home appraisal is a way for lenders to determine the value of your property. Just because you’ve been pre-approved for a mortgage doesn’t mean your lender will approve your purchase, especially if they think you overpaid! Read on to learn more about what a home appraisal is and why it’s required by most lenders.

A Conditional Offer

One of the most common conditions included in an offer to purchase is a financing condition. Once your offer has been accepted by the seller, you’ll want to contact your lender as soon as possible to request a home appraisal. You can shop around for lenders willing to cover the appraisal fee, however, home appraisals typically cost between $250 and $350 – a minimal closing cost, when you think of what it could be worth. Just make sure your lender performs an appraisal before you waive the financing condition.

A Requirement

A mortgage is likely the largest loan you will ever take out, so your lender will want to do its due diligence before approving your mortgage. The home appraisal provides the lender with the reassurance that your property is worth the selling price. Even though you might be willing to pay $550,000 for a house, your lender might say it’s only worth $450,000. Continue reading →

Why You Should Still Get a Home Inspection in Toronto

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A Typical Home in Toronto

Flickr: fachxx00

Real estate markets may be cooling across the country, but that isn’t in the case in Canada’s largest city Toronto. Although the new condo market may be slowing, detached homes remain in high demand. If you’re a homebuyer in the Greater Toronto Area (GTA), you probably know all too well the dreaded bidding war you could be faced with. But if you’re thinking about foregoing a home inspection in Toronto, just to get what seems to be your dream home, it’s important to be aware of the many risks you can face.

A Conditional Offer… or Not

Picture this: You’ve been searching for the perfect house for months and you finally found one you’d like to call home. The only problem is you’re not the only buyer who’s interested. When it comes to multiple offer situations, offer price alone doesn’t necessarily guarantee you’ll be the successful bidder. Conditions on offers can make or break a deal – it isn’t unheard of for sellers to accept a lower offer with fewer conditions, just to get the sale over and done with. While you might consider avoiding a condition on financing, if you’ve been pre-approved for a mortgage, what about the condition of a home inspection? Too many buyers in Toronto are being faced with this decision today.

Added Pressure

Last year’s tightening of mortgage rules – which lowered the maximum amortization period from 30 years to 25 years – may have cooled the condo market, but low-rise houses remain coveted in the GTA. Continue reading →

The Top 5 Problems Found During Home Inspections

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Roof Repair

Flickr: roofing-contractors-raleigh-nc

After months of searching, your hard work has paid off and you’ve finally found your dream house – or so you think. A satisfactory home inspection is one of the most common conditions included by buyers in their offer to purchase, and with good reason. While a home may show well, there are many costly issues and upgrades that can be overlooked. The trained eye of a home inspector can help you uncover any issues, so you can either back out of your offer or negotiate a lower price with the sellers. As a result, a home inspection could be considered one of the most worthwhile closing costs to budget for.

Here are some of the most common problems found during a home inspection:

1. Drainage or Grading Problems in Your Landscaping

Water-related issues are by far the most frequent problem encountered by home inspectors. When viewing a house, look for any signs of water damage; you can usually spot it by finding dark brown spots on the ceiling or along the baseboards. Common drainage and grading problems include: landscaping that slopes towards your house, improper drainage for retaining walls, and downspouts that don’t drain at least six feet from the foundation. Over time, water damage can lead to major expenses – including having to fix a future crack in your foundation – so it’s imperative to fix these issues immediately.

2. Electrical Wiring

DIY home renovations are rising in popularity. Big box retailers, like Home Depot, hold regular classes on home improvement projects, and television shows make these projects look easy. Continue reading →

Why You Should Attend a Home Inspection

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Witness a Home Inspection

Flickr: justinbaeder

One of the most common conditions buyers include in their offer to purchase is a home inspection. A home inspection serves two main purposes: 1) it shows you what condition the home is in, which helps you decide if it’s worth buying or not, and 2) it gives you a rundown of anything that may need to be fixed, should you choose to buy it. Home inspections typically last between two-to-three hours and can add anywhere from $300 to $600 to your closing costs total, depending on the size of your house.

After the inspection is done, the home inspector will leave you with a detailed report of their findings. While this is a great document to keep for the duration of time in which you own your home, reading a report is nothing compared to witnessing a home inspection first-hand. Here are five reasons why you should attend your home inspection.

1. Find Possible Repairs

During a home inspection, your home inspector should give you a tour of your house and show you any major issues they find along the way. Repairs can range from non-urgent tasks, such as weatherstripping, to more urgent and costly repairs, including structural issues and water damage. Make sure you physically see anything that needs to be fixed and understand why it needs to be fixed. Continue reading →