Buying a home or rental property is a substantial investment.

In today's buying and borrowing environment, please ensure that your Realty Purchase Contract contain Subject to Satisfactory Financing, Appraisal and Inspection by ..... such and such a date ....( 10 or more working days ), clauses.

Appraisal [ - by Lender approved company ], and Inspection costs are very small in comparison to your hundreds of thousands, million, and multi-million dollar Purchase.

Once all these clauses are removed as satisfied, then it is pretty much a done deal.

Tip: Lending Value is based on the LOWER of Purchase Price or Appraised Value.  Lenders are not obligated to fund any shortfall if Appraised Value comes in below Purchase Price.  A lower Appraised Value results in a higher Loan-to-Value; and beyond certain thresholds may require approval from a Mortgage Default Insurer, and a premium payable.  

An Inspection could uncover defects and needed repairs which could be costly to fix.  Uncovering these ahead of time gives you the opportunity to negotiate a lower price with the Seller to cover all or some of the costs.

Your extra effort in getting all documentation together [ Notices of Assessment, T4s, T1 Generals, details of other existing properties owned, etc., as required.. ] for Lender approval is a good investment of your time when making such a big ticket purchase.

Being methodical about the process will help make the ownership of new real estate a very rewarding experience : )

Small reminder: Buying well means having to borrow less.

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