Follow the Money!

So you might need some extra cash to buy your dream house! Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage. The good news is that over the past several years, money has been readily available and cheap (to borrow)!

The foreclosure rate is approximately 2% of all homes owned; hence, the risk to the lender is low. The real issue with real estate financing is not getting a loan; virtually anyone who is qualified to pay the monthly nut can find a mortgage. The idea is to get a loan that is right for you, a mortgage with the lowest cost and best terms.

There are many loan programs available to fit individual needs. Several are geared to first time homebuyers, not only allowing the purchase of a home with no money down, but also underwrite closing costs. A first time homebuyer in Massachusetts is anyone who has not owned a home for two years!

You can start the pre-approval process well before bidding on a home, or for that matter before you start looking. Lenders, the sources of money will meet with you in advance, at no cost, and identify mortgage programs. It is best to go to a lender you know, like your local bank, for pre-approval. You are not however obliged to borrow from them, once we find your dream house; you will have time during your mortgage contingency period to shop for the best deal.

Mortgage financing can be obtained through mortgage brokers, from savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies. We will be able to supply you with a list of local lenders as well as mortgage brokers who are more than interested in financing Berkshire real estate.  Getting pre-approval means you have a very good idea of how much you can borrow, what loan programs will work best in your situation and how much home you can afford. Once pre-approved it will not be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

 Mortgage calculator