Congratulations! You’re at the beginning of a once-in-a-lifetime experience — buying your first home.

There may be a lot to consider at first, but don’t worry. We have your back.

Learn about mortgage pre-approval, first-time homebuyer discounts in Massachusetts, qualified real estate professionals, and more.

Assemble your dream team — then find your dream home

No, it’s not rocket science, but there is a science to buying your first home. 

That’s where a qualified real estate professional comes in.

REALTORS® know the local area, so they can share neighborhood to neighborhood insights and do things like hook you up with trusted home inspectors. They understand where the best first-time homebuyer financing can be found, how market trends should influence your searches and offers, and how to determine your best offer on a particular home.

Best of all, your REALTOR® is here to act on your behalf and advise you every step of the way. Their support can make all the difference, especially for a first-time homebuyer.

Mortgage pre-approval and other financing tips

It used to be suggested practice, but mortgage pre-approval is more important than ever in today’s competitive Massachusetts real estate market. Simply put, if you’re not ready to make an offer, chances are someone else will be.

When you’re ready to apply, XSELL REALTY mortgage partners, Nick Paleologos at Envoy Mortgage and Eva Kokosinska at Radius Financial, are here to help. But don’t be afraid to shop around. Financial institutions are vying for your business with competitive rates and discounts, and pre-approval is free to you.

Plus, first-time Massachusetts homebuyers are eligible for special discounts and lower down payments:

·      First-time homebuyer discounts: Many banks, credit unions, and mortgage brokers offer special rates and terms for first-time homebuyers. Search individual websites or ask your REALTOR® for guidance.

·      FannieMae & FreddieMac: Under these loan programs, Massachusetts residents can pay a little as 3% down and may include non-traditional income sources.

·      FHA Loan: Find competitive interest rates with flexibility for lower credit scores and debt-to-income ratios through the Federal Housing Administration.

·      MassHousing Loan: Massachusetts residents who are first-time homebuyers can get up to $30,000 in down payment assistance (up to $50,000 in select cities) through MassHousing.

·      VA Loans: Veterans can access loans with as little as 0% down.

·      USDA Loans: Rural Massachusetts residents may qualify for a zero down payment loan through the United States Department of Agriculture.

·      First-time homebuyer grants: Some Massachusetts cities and towns provide first-time homebuyers with financial assistance in the form of grants. Visit your municipality’s website for more information.

Mortgage pre-approval is more than a set of numbers. It will guide your homebuying search as much as any other factor, plus give you a sense of how much money you need, or want, to put down.

Factor in closing costs and other associated expenses

Your mortgage represents your largest financial commitment but it’s not the only piece of the homebuying puzzle.

As you consider how much of your savings to include as a down payment, keep enough on hand for fees such as:

·      Property taxes: As a Massachusetts homebuyer, you are required to pay property taxes from the date of sale through the remainder of the year. Property taxes vary by town, lot size, and other factors.

·      Closing/escrow: A fee of about $2.00 for $1,000 of the purchase price, plus a standard $250 fee, is required.

·      Home inspection: You’ll need about $600 to pay for a licensed Massachusetts home inspector.

·      Title company search: This ensures that no one else has claim to the property you are about to purchase. It will run you anywhere from about $150 to $500.

·      Flood determination: It’ll cost about $20 to determine if the home is in a flood zone. If it is, you’ll want to purchase flood insurance.

Talk to your lender for more information. Lenders are required to disclose an estimate of closing costs within three days of completing your loan application and a disclosure at least three days prior to closing.

Relax and have fun — enjoy the possibilities!

First-time homebuying only happens once. Why not enjoy it?

Take time to dream big. What kind of neighborhood do you want to live in? Which home features would you love to have — how about a modern kitchen, extra storage space, or a home office?

You never know what you’re going to find! There’s something for everyone in Massachusetts.

Looking for a REALTOR® you can trust? Our team combines excellent customer service with local knowledge and expertise. Contact XSELL REALTY today to start your homebuying journey.