A credit score will affect many of your decisions regarding your financial life and influence how banks and other financial institutions view you.
Step 2: Find a good lawyer. Ask around. Check them out on the Web. Make sure you at least talk to them on the phone and ask them how much they charge: this should be a fixed fee. Ask as many questions as you can, but you probably away won’t get more than 5-10 minutes. Lawyers bill by the hour, so they don’t like to give time for free. You’re looking for someone who is honest, direct and takes the time to explain things. If you need a good attorney a free home buyer seminar at First Choice Realty is a good place to meet attorneys.
Step 3: Find out what houses are selling for in your area. Search First Choice Realty.com which has a live MLS feed of every home for sale in Massachusetts.
Step 4: Speak to a few lenders about what options you will have. In Massachusetts there are several programs that offer as little as 3% down for home buyers. There are also Down payment Assistance Programs that help home owners get down payments for homes.
A good lender will help you find and apply for these programs. There are also the differences between Portfolio lenders that keep your loan in house and banks that sell your loan to a Fannie Mae or Freddie Mac. There are benefits to both. A good Real Estate agent can help you find a good lender.
Know your closing costs. Have a lender explain exactly what the closing costs will be.
There are so many factors to consider besides the rate.
Get it in writing and lock the rate as long as possible. There should not be a charge for this.
Step 5: Find an agent. There are plenty of good agents out there. A good agent will be able to help you find a lender, and an attorney. They can also help you find where your money will go the farthest. You may be looking for a 2 bed 2 bath home near to work. A real estate agent familiar with your area can show you where your budget gets you the best location, schools and more. First Choice Realty has been in Greater Boston since 1999 and we have a boutique office that specializes in helping individuals like you.
Step 6: When the time comes, don’t fall in love with the house. You may not get it. Based on the other houses you’ve seen and recent sales of comparables, make a reasonable offer. Your agent will find out all the particulars of the seller’s situation and the recent sales. This will help us get you the best price possible. Our agents have negotiation training that makes you happy thy are on your side.
Step 7: After you make an offer. The seller will counter and we go to work. This can be a stress filled part of the process if you are not well informed. At this point your agent will be in touch sometimes every hour to make sure you know every email, call or fax sent or received. This will help you know exactly what is happening and what your next move will be. This can go on for a few days. Usually it lasts less than 24 hours.
Step 8: Congratulations you got the home!Now we get to let the attorney and bank do their work. We will schedule a home inspection and get the attorneys working on the paperwork. The bank now has a green light to finalize the financing necessary. Again this can be a long or short process depending on the financing. 60 days is normal in today’s market.
Step 9: Call your lawyer. Sellers always want the closing date to be soon. For us the date can be later the better. You need time to get your mortgage approved and get your home ready for the move.
Step 10: You give the down payment check to your lawyer – but they don’t get to keep it. Your money goes into escrow – neither you nor the seller own it until the deal closes. If the sale is canceled because one of your contingencies wasn’t met, you should get it back.