Buying Your Boston Home with a VA Loan

There are several myths and misconceptions surrounding VA home loans. Many Boston, MA home-buyers are not aware of eligibility, multiple purchase rules, and safety of these 0% down loans. As a military veteran, don't let outdated or bad information keep you from exploring your hard-earned home loan benefits. In honor of yesterday's Veteran's day here are a list of four VA Loan myths. Don't let them hold you back!

Myth #1: VA loans cost more.

In reality, the interest rates, upfront expenses and closing costs aren't inherently more with VA loans. Rates tend to be competitive with conventional loans, if not below. When you also consider the no down payment requirement and no need for mortgage insurance a VA loan is very comparable to conventional loans and quite “cheaper” than FHA loans, both which require minimum down payments and mortgage insurance.

Myth #2: You can only use the benefit once.

Qualified borrowers can use the VA loan program over and over again. It is also not a benefit exclusively for veterans, a small percentage of VA loans went to active-duty military in the last year.

Myth #3: Your purchasing power is limited.

Qualified borrowers in most of the country can purchase up to $417,000 without a down payment. In Boston, MA the VA loan limit is a bit higher at $598,000. Please note, this doesn't restrict how much home you can buy in Boston, MA, but, limits how much you can borrow before having to figure in a down-payment.

Myth #4: VA loans are risky loans.

VA loans have the lowest foreclosure rate of any loan on the market, for nearly all of the last six years. Whether this stability is due to common-sense underwriting or the VA's commitment to keeping veterans in their homes, you can feel secure taking out that VA loan.

When you are ready to purchase your dream home contact an experienced Boston Real Estate agent. I'm committed to providing you with the highest quality buyer service. I am always here should you have a question on a Boston, MA neighborhood such as South End, Fenway, Beacon Hill, or any other. I hope to speak with you soon!

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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New Year’s Eve Brunch in Boston, MA

A time honored tradition for many is to start off the New Year in Boston, MA with a delicious brunch to rehash last night's goings on and to help ease recovery from the New Year’s Eve festivities. Boston, MA is a great foodie town for this tradition with so many great restaurants to choose from. There are plenty of options from the sweet to the savory, along with the perfect drinks to help you recuperate. Here are a few standouts from the brunch bunch.

Bostonia. Bring on the new year with Bostonia's Brunch. Their extensive Bloody Mary bar will help you recover from last night's fun and the food is great too. Brunch from 10am – 3pm, 131 State Street, Boston. 617-948-9800

Cafe Fleuri. Located in The Langham, Cafe Fleuri's New Year's Eve Recovery Brunch is just what the doctor ordered. An extensive menu featuring traditional breakfast items, carving and pasta stations. $91 for adults and $45 for children 5-12. 11:30am – 2pm, 250 Franklin Street, Boston. 617-451-1900

The Butcher Shop. Don't plan on being up in time for breakfast? No problem, the late brunch at The Butcher Shop is just what you need, serving from noon – 4:30pm. Offering both breakfast and lunch type items all taste buds will be satisfied. 552 Tremont Street, Boston. 617-423-4800

Looking for more options? Eater Boston has a list of the hottest brunches in Boston, MA.

I hope that your New Year’s Eve and New Year’s Day are memorable and that you enjoy celebrating with your friends and family. If you have any Boston, MA real estate needs, please contact a Boston, MA real estate agent. I look forward to hearing from you soon!

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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How Much Can You Afford in a Boston Home?

If you are a first-time home buyer in Boston, MA you must consider how much loan you can afford before you go shopping for that dream house. Excess debt can affect your ability to own a home or to keep a home so it's important to know what your financial “wallet” looks like. Before you go shopping for a mortgage make sure to calculate how much home you can afford.

Debt-to-Income Ratio. A good place to start is with your debt-to-income ratio. Lenders will use this ratio to see how much you qualify for. You can do a quick calculation yourself by dividing the total of your fixed expenses - such as rent, car loans, and credit cards – by your gross monthly income. This isn't a full picture but is a good starting point. Depending on if your loan is qualified or not your debt-to-income ratio will have a cap of 43%, meaning your mortgage payment can't exceed 43% of your monthly income. If you have a high level of debt you may need to reduce it before you can qualify for the mortgage you want.

What can you afford? Even if you qualify for a high-dollar mortgage you likely should not borrow the full amount. When you add in closing costs with the down payment much of your savings can be depleted. Consider taking on a smaller mortgage, therefore a smaller down payment, so you can keep some money in the bank for emergencies. A Boston, MA home affordability calculator can help you see what your mortgage and monthly expenses may look like.

Test out your mortgage in your wallet. Before taking out a mortgage and officially adding it to your wallet give it a test. Pretend to make a monthly mortgage payment by setting aside the additional amount you would pay each month. Live this way for a few months and see if it leaves you comfortable with your new spending. If the additional payment leaves you stressed or unable to live within your means than you should scale back that Boston, MA dream home.

When you are ready to purchase a home in Boston, MA look to an experienced Boston Real Estate Agent. I'm committed to providing you with the highest quality buyer service. When making the type of investment that buying a home requires, you deserve to have all the latest market information and the very best advice, both of which I can provide you with. I am always here should you have a question on a Boston, MA neighborhood such as South End, Fenway, Beacon Hill, or any other. I hope to speak with you soon!

Lucas Garofalo

Keller Williams Realty

(617) 861-3631

Lucas@LucasBostonHomes.com

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