Getting pre-approved for mortgage financing falls under the category of boring but necessary. I like to revisit this topic now and then, however, because I believe the single most important thing you can do beforebeginningyour home search is to get a pre-approval letter from a lender. If you plan on buying a Boston area condo or home, and you are not paying cash, you should get pre-approved for a loan.Having a pre-approval letter minimizes unwelcome surprises further along in the homebuying process. It's possible you think you know how muchyou can afford to buy, but the pre-approvalprocess clarifies that.It also has the benefit of showing sellers that you have homebuying credential. A pre-approval letter states that the lender will commit, in advance, to approving you for a certain loan amount. This is provided that youve given accurate information, and it is contingent upon certain aspects of the property you intend to purchase. Without seeing a copy of your pre-approval letter, sellerswon't want to take their property off the market and miss out on other potential buyers. Boston homebuyers are in high competition because of the tight inventory of properties, soI recommend submiting your pre-approval letter with your offer to purchase. Its important to give the seller the security ofknowing you have been pre-approved for financing.Time is of the essenceif other buyers bidon the same property, having this key piece of informationready forthe seller gives you a distinct advantage over buyerswhohavent taken the time to be prepared.Once you make an offer on a home, you are under no obligation to work with the lender who pre-approved you.You canstill shop around with otherlenders. I encourage you to do that, in fact, as ithelps you to become familiar with concepts and options of such things as closing costs, mortgage rates and programs, and pre-payment penalties. But those are not decisions you need to make immediately, as long as you get your pre-approval letter in hand for your home search.I know ofseveral good local lenders who can quickly pre-approve you, as well as having goodservice and rates, and an understanding of the local market. If youd like to know more, click the blue Questions? Get in touch! button at the endof this post.Here are other thingsyou should know whenpurchasing a property in Boston.Are you pondering which neighborhoods best suit you and your needs? Heresinformation aboutBoston neighborhoods.To learn more about the Boston real estate market, call me at617-584-9790 or click the button below.In my 25 years in the Boston real estate market, I have helped hundreds of people buy and sell Boston condos.I am committed to providing my clients with all the information necessary to make gooddecisions.   

Boston Real Estate Headlines:

• Alexandria Launches Life Science Startup Platform at One Kendall Square in Cambridge
• Heres How Fast Homes are Selling in the Boston Metro Area
• Building Boston: A Chat with Robert Verrier of the Architectural Team, Inc.

Featured Boston Real Estate:

• 35 Fay Street, #609, South End $550,000
• 25 Channel Street, #PH-102, Seaport $2,529,000
• 80 Broad Street, #PH-1102, Waterfront $1,799,000

 

If youre selling your Boston area home or condo, and using the proceeds from the sale to purchase a new home or condo, you probablyhave questions about how to make the whole process work. Canner Law, a Massachusetts real estate law firm, has a well-written andinformative blog(quoted below) that explains how it can work:

Most clients who experience a smooth piggyback transaction attribute it to having good communication and coordination between the lender, attorney and real estate broker.

I couldn't agree more. I can't emphasize enough the value of having a competent and attentive team working for you.Back to back transactions often begin with a morning sale closing and an afternoon purchase closing:

This allows time for the sale closing attorney to conduct the closing, go to record (meaning recording the deed and mortgage with the appropriate county Registry of Deeds), and then wire the net proceeds to the purchase closing attorney. Once the purchase closing attorney has conducted their closing and received all funds, then they can go to record as well, completing the transaction.

Piggybacking of transactions happens more than you might imagine. To read more about how it works, here's Canner Law's full article.Having expert transaction management through selling and purchasing activities and during the closing process is invaluable. I have over 25 years experience helping people buy and sell Boston homes and condos, and I am committed to providing my clients with the best service and all the information necessary to make good decisions.If youhavequestions about buying or selling Boston real estate, please call me at617-584-9790, orsend me an email via the linkbelow.  

Boston Real Estate Headlines:

• Are Empty Offices in Boston a Sign the Fall is Here?
• MITs Volpe Center Redevelopment Likely to Include Cambridges Tallest Building
• Condos Eyed at Site of Dorchester Funeral Home

Featured Boston Real Estate:

• 572 Freeport Street, #304, Dorchesters Neponset $625,000
• 416 Comonwealth Avenue, #220, Back Bay $1,499,000
• 28 Concord Street, #3, Charlestown $799,000

 

Youve 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 Headlines:

• Slow Start to Greater Boston Industrial Sector Not Indicative of Overall Market Strength
• Bostons Real Estate Market is Poised for a Boom
• $7.85M Spent to Build Boston Penthouse

Featured Boston Real Estate:

• 301 Berkeley Street, #1B, Back Bay $1,998,000
• 1-3 Nearen Row, #1, Charlestown $799,000
• 416 Marlborough Street, #201, Back Bay $1,295,000