Boston Condo Due Dilig...

Steps to a Successful Boston Homebuying Process

Boston homebuyingYouve finally found the Boston home or condo of your dreams. You've made an offer and the seller has accepted it. Great! Now what?There are still a few more steps to complete the process before that final desired resultthe closing.When you made your initial offer, it laid out the following terms: The price you were offering; the amount you'll be getting financing for; when youwished to take possession of the property; and contingencies that affected your desire or ability to buy it.When youroffer has beenaccepted, expect to put down a deposit known asa binder. Typically, this is a check for $1,000. The check goes to the listing brokerage to be held in an escrow account upon agreement and written execution by both parties.The next milestone in the processis to signthe "Purchase & Sale"contract, often referred to asthe P&S, and this is where the basic terms are spelled out. In the roughly 10 days from when your offer is signed until you'll sign the Purchase & Sale, be preparedto do your due diligence: Schedule a home inspection Review the condo association's documents and financial statementsSpeak with the condo association's management or trustees to learn about current or upcoming building issues or concerns Prepareto put down at least 5% of the sales price at the P&S signing.For your home inspection, your buyer agent can provide you with a list of reputable, experienced inspectors. Plan on paying about $350-$500 for the inspection fee.Look atthe association documents with a Boston real estate attorney.Then comes the closing. Here'swhat you will needfor the closing.The entire transaction, from the acceptance of your offer to the final closing, is likely to take about 6 weeks. Cash transactions, and even some financed transactions, cango faster, but in general it's not unusual for banks to take about 6 weeks to complete everything.Lastly, but importantly, an experienced realtor is an invaluable asset in your homebuying process. From negotiating your offer toguiding you as smoothly as possible through each step of the buying process, this important relationship can helpsee your purchase through to the best possible conclusion. I always strive to give my buyer clients all the tools to make informed decisions, and to guide them through the potential pitfalls that can derail a real estate transaction in Boston.Thinking about whichBoston neighborhoodsyou'd like to live in?Do you have questions about the Boston buying or selling process? Please feel free to call me at617-584-9790 or email me viathe blue button below. Boston real estate 

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Buying a Boston Condo: Condo Association Due Diligence

condo association due diligenceI haven't written on the topic ofcondo associations in a while, so I decided torevisitthis important topic for those in the market to buyaBoston condo.Whether my client is buying into a small, self-managed association or a large, professionally managed one, I always encourage them to speak with the management company and/or a trustee of the building. I want my clientsto have all the information they need to make a fully informed purchase. This is what I callcondo association due diligence.As noted above, there are a few ways that a condo association mightbe managed. Larger associations frequently will use a property management company to provide services such as cleaning and maintenance of common areas maintenance, garbage and recycling management, and snow removal. These companies will have knowledge of, and access to, the physical property and the financial information. Smaller associations tend to be self-managed, with at least one trustee withthe access and knowledge that a management company would otherwise have. Trustees can bea good resource for information because they are also residents of the building, and they often have a greater context of understanding that includes the experience of living there.In a smaller association, you may even want to speak with one of the association neighbors to learn more.There'san excellent articlecalled 10 Questions To Ask Before Buying A Massachusetts Condominium Unitwritten by Massachusetts real estate attorney Richard Vetstein of The Vetstein Law Group. As the article emphasizes, your purchase is about more than just your own living space. You are also entering into an association.A fewof the questions Attorney Vetsteinrecommends beingsure toask include:

What Does The Master Insurance Policy Cover?How many units are owner occupied?What is the monthly condominium fee and what does it pay for?

Youll also want to knowabout special assessments, so ask whetherthe association has plansto make improvements or repairs that arent covered by their reserves. Lenders will want to see that the association you want to buy into is putting 10% of condo fees into reserves. Ifyou're buying into have, for example, a four unit association with condo fees of $250 per month each, this means that lenders will want to seethat the association is budgeting $100 per month ($1200 per year) to its reserves fund.Do you have pets? If yes, thenyoull want to askwhether there are restrictions on having pets, or on the size or the number of them. Some associations may limit pet-keeping toa maximum of two dogs or two cats, or they may have restrictions prohibiting exotics such as reptiles.You should also ask ifyour condo ownership will includeexclusive access to parking, storage or decks.Review all 10 recommended questionsin the full article.Its important to me that my clientslearn about the physical and financial aspects of the association, in addition towhat its like living there.My Boston real estate buyer primerreviews relevant due diligence questions with regard to condo purchases.Lastly, it helps to go in with an experienced agent. Ive been helping buyers for 25years, so if you have any questions about buying or selling property in Boston, please feel free to please call me at617-584-9790. Or email me via theQuestions button below. Boston real estate 

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Boston Real Estate: The Mortgage Commitment Process

Boston real estate#BostonRealEstate #BostonCondosAs an experienced broker, I am always there to give my clients sound guidance through their entire real estate transaction. Helping my clients be well-informed throughout the process of buying or selling a property is a top priority.One of the most important things forhomebuyers to understand, if theyare having theirpurchase financed, is the mortgage commitment process. Financing is one thing you really don't want to go wrong.An understanding of what is required of the buyer, and when, goes a long way toward making yourhomebuying experience go smoothly.Canner Law, a Massachusetts real estate law firm, has a well written, informative blog with a postthat explains how the process will unfold.Heres their post, called Mortgage Commitment FAQs:

Understanding a Mortgage Commitment: FAQ's

When financing a purchase transaction, the mortgage financing date is the single most important pre-closing event after the Purchase and Sale Agreement is signed.
How Long is the Mortgage Financing Timeline?
The mortgage financing date typically occurs three to four weeks after the P&S is signed. For a condominium purchase, four weeks is recommended.
What is the Purpose of a Mortgage Commitment?
When financing a loan, a lender undertakes a lengthy review of the borrower prior to approving financing. The borrower and the property must meet detailed Fannie Mae guidelines. Thus, a mortgage financing date allows a Purchase and Sale Agreement to be signed before a borrower is approved.
What if a Borrower is Not Approved?
Occasionally, a borrower's financing is not approved. If this occurs, the lender issues a "denial" letter, and provided the request is timely, the borrower is refunded the full P&S deposit (typically 5% of the purchase price in Massachusetts). A skilled loan officer should be able to make an early determination that a borrower is qualified for a loan. Moreover, the process creates an implied incentive to ensure that a borrower is an ideal candidate to receive a loan: the lender, other real estate professionals and seller certainly want to avoid a scenario where a borrower is denied a loan and the transaction is terminated 4-6 weeks into the pendency of a deal.
What Does a Lender's Underwriter Review?
A lender's underwriter engages in a thorough review of the borrower's ability to repay a loan, including reviewing credit, employment, and assets. (Note, if a borrower has commission or bonus based income, it may take longer to analyze).
The lender also reviews the appraisal to ensure the property appraises at or above the purchase price. Finally, if the borrower is purchasing a condominium unit, the lender conducts a detailed condominium project review. The review including ensuring the condominium questionnaire, the condominium documents and financials meet Fannie Mae guidelines.
What if the Lender Does Not Have A Commitment Ready on the Mortgage Financing Date?
On occasion, a commitment can be delayed due to issues beyond a lender's control such as problems with the appraisal process or obtaining and reviewing financials (e.g., bank statements and brokerage accounts). In this scenario, the buyer's attorney will request an extension. A seller is incentivized to grant an extension, because if the seller refuses to extend, they must refund the buyer's full deposit and then put the property back on the market. Thus, the buyer typically can obtain one to two extension(s). However, many deals are on tight timelines, and if a seller is purchasing, they need the certainty of the commitment in a timely manner.
How Should A Borrower Read a Mortgage Commitment?
Once the lender issues the mortgage commitment, it is important for the borrower to thoroughly review the commitment with their loan officer and/or attorney. The commitment will contain a few outstanding conditions. Most are boilerplate that apply to all loans and are easily satisfied in the days prior to closing. They include verification of employment, a final credit check, a final inspection (if new construction), or final review of bank statements.
Conditions that should be "red-flagged" as requiring an additional extension of the mortgage financing date in order to satisfy underwriting guidelines include when a loan is "subject to" an outstanding appraisal condition, a loss of employment, or condominium project approval.
Should A Borrower Show the Commitment to the Listing Agent?
The lender sends the mortgage commitment directly to the borrower. A borrower is not required to disclose their mortgage commitment to any party in the transaction. Often, the commitment contains personal and private information, such as bank accounts, financials and employment. A borrower simply can let the mortgage commitment date pass when proceeding forward. Often, a buyer's agent will verbally notify a listing agent that the borrower has a mortgage commitment.
You can see the article at the Canner Law blog.

Doyou have questions about buying or selling Boston condos or homes? In my 24+ years in the Boston real estate market, I havehelpedhundreds of people buy and sell Boston condos and homes. If you need assistance, pleasecall meat617-584-9790, or email me via the linkbelow. Boston real estate 

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Boston Real Estate: What You Should Know About Closing on Your New Home

Closing on your new home#BostonRealEstate #BostonCondosIf yourebuying your firstBoston condo orhome, or even if you're not a first time buyer but don't have a clear recollection of the process, you probablyhave questions about the closing.Canner Law, a Massachusetts real estate law firm, has a well-written andinformative blogwith a post that spells out the closing steps in detail.Heres an excerpt from their post, called "The Closing":

You are finally at the finish line and about to close on your new home or condominium unit. Naturally, you wonder "What are the final amount of funds to bring to closing and is there anything else I need to close?"If you are financing the transaction, the lender is required to provide you with a "Closing Disclosure" ("CD") at least three days prior to closing. The CD will provide the final amount of funds needed to close. If you have a cash purchase, the closing attorney will provide the "Settlement Statement" which will similarly provide the final amount of funds to bring to the closing table.You can bring the final funds by a certified bank check or send via a wire transfer.If bringing a certified bank check, it should be made payable to yourself. Moreover, your lender may "source" the funds, meaning the bank check must be drawn from a bank account "sourced" (i.e., approved) by the lender. Thus, you should confirm the bank account with the lender before obtaining the bank check.If wiring the proceeds, you should obtain the wiring instructions from the closing attorney in advance of the closing. If wiring from a brokerage account, you should send the wire two days in advance to allow for enough lead time. If wiring from an institutional bank account, you should give yourself one day lead time.Additionally, you should bring two forms of identification to the closing, including a valid driver's license with a photo. A passport is a good back-up form of identification. A social security card also is acceptable. Credit cards are not acceptable forms of identification.You should schedule the "final walk-through" with your realtor in advance of the closing. The actual closing takes approximately one hour.At closing, our office provides pens, water, and/ or coffee. We also will give you the important documents to take with you, and email you a copy of the signed closing package as an encrypted PDF file for your records.The listing agent or the sellers attorney typically provides the keys at closing.

You can see the article in its entirety at the Canner Law blog.

Doyou have questions about buying or selling Boston condos or homes? In my 24+ years in the Boston real estate market, I havehelpedhundreds of people buy and sell Boston condos and homes. If you need assistance, pleasecall meat617-584-9790, or email me via the linkbelow. Boston real estate 

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