First time home buyers? Tips to protect Yourself!

Zoltan PadarNews

Buying a home is a dream for many. Getting the right house with the hard earned salary requires proper planning and guidance. One has to be really careful in making sure that they get the house for the money’s worth and has to finish many formalities in order to finalise the deal on the house. There are many forms of contingencies and disclosures that have to be in order to make sure that you do not spend money than it should be spent.

All the first time home buyers need to be extra cautious about the deals and the transactions. They are generally advised to get the help of the professionals who have some experience in the field. Since this deals with a lot of money, it is always better to get the help of some experienced person who would be able to guide you in finalising the deal after making sure that you do not face any threat from the disclosures or the contingencies that follows.

 

What are the contingencies and disclosures?

 

Contingencies are the set of deals that are struck between a buyer and a seller. This is called as the “If-Then” deals. For instances, the buyer would have a deal with the seller of the house that, “If” I am able to sell my current property, “then” I would buy the property from you. These are included in the purchase contract and some can be controlled and the others cannot be. Some common contingencies that have to be in order are:

  • Finances: This deals with the scenario where the buyer has to take steps to obtain finances for purchasing the property. If he/she fails to do so, then the buyer cannot be penalised in any way for being unsuccessful in qualifying for the home loan.
  • Home inspection: The seller might fix a price in the deal for the house, but the buyer must get the home inspected by a qualified home inspector to make sure that the deal is set right. All the repairs and remodelling the house needs would be verified here. 
  • Selling the current house: This contingency state that, the deal can be finalised based on the sale of the current house that the buyer has possession over. If the deal is unsuccessful, the seller can back out from the deal.

The Disclosures deal with the defects and the environmental hazards that the house might potentially have. The buyer must be thoroughly informed about the same before negotiating the deal.
Some common disclosures are:

  • Standard disclosures: In this, the seller provides a list of the items that might be missing from the house like the mechanical parts and other such major issues. The buyer must verify the whole list completely. 
  • Hazard zones: Few properties might have been built on zones that are prone to earthquakes, fires, floods and other natural calamities. The buyer must get the area checked for such cases.
  • Paint used: Seller must give the full detail about the composition of the paint that has been used. The buyer must be given a time of 10 days to conduct tests to check the lead composition in the paint.

These contingencies and disclosures are to be followed closely since a small mistake can lead to the loss of huge amounts of money.

The experienced mortgage brokers of MortgagePRO Ltd. have access both institutional and private lender funds for the leading edge in home financing and refinancing.
Call Us: 403-253-2022 or Email Us: zoli@mymortgagepros.com