Wednesday, October 1, 2014

Boston, MA – 3 Steps to Getting a Mortgage

mortgage application
Shopping for a mortgage is one of the first steps toward owning your own home in Boston, MA. It can be especially daunting if you are not prepared. There are dozens of loan types and hundreds of loan programs available through even more mortgage brokers, bankers, lenders, and credit unions. Contrary to popular belief, finding a mortgage doesn't begin with an application. First you must educate yourself on the vast number of mortgages available. The three steps outlined below will help you get that application process and then eventually to the closing table to purchase your Boston, MA dream home!

Step 1: Examine your finances
Start by determining how much mortgage you can afford. Lenders may have a heavy hand when it comes to what you are approved for. Do the math to figure out what sort of payment you will be comfortable with. Don't forget to include insurance, taxes, any homeowner dues, and other costs associated with the payment.

Step 2: Shopping for a loan
When shopping for a loan there are two “stores” you can shop at – direct lenders and mortgage brokers. When borrowing from a direct lender they are the ones lending the money to you and have the final decision on your application. Brokers are intermediaries who have lenders to choose from, just like you. Direct lenders may have only a few in-house loans available while a broker can shop many lenders and their store of loans.

Make an educated choice and don't just go with the lowest interest rate. There are many factors that affect the true cost of your loan, including fees, points, penalties, loan term, application fee, appraisal, and more.

Step 3: Apply for a loan
Now that you've done all the work the easy part is next – filling out the application. You will need several documents to prove income, debt, and job status but other than that it is just a bit of paperwork. Once you submit the paperwork your lender will run your credit score and verify the numbers that you submitted. If they deem you creditworthy they will likely hire an appraiser to check the value of the Boston, MA home you want to buy. After that you will be well on your way to the closing table!

And above all, make sure you are working with a qualified professional! A Boston Real Estate agent who has the experience to help you compose the perfect offer to get that Boston, MA home of your dreams and the skills to negotiate you straight to the closing table. Please contact a Boston Real Estate agent when you are ready, I cannot wait to earn your business!

Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com

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