Is homebuying a goal? Don’t buy a home without reading this guide first.
BROCKTON — Buying a home can be one of the most exciting but stressful times in a person’s life, especially for a first-time homebuyer.
We’ve talked to experts and put together a list that can combat the buying jitters to help make this process as straightforward as possible.
This guide will help you find resources for grants and loans and what to expect on the journey of buying a home.
We spoke with a local realty group that sells millions of dollars worth of homes annually in the area. And they gave us their best tips and tricks for success in today’s market.
Whether you plan to buy in the future or are ready to buy now, this guide will help you prepare.
So here are 10 steps to becoming a homeowner in Brockton based on our conversations with Emiel Barbosa and Adelino Vicente, real estate brokers from Vicente Realty at101 Torrey St in Brockton:
1. Become Educated, ask lots of questions
Before diving into the homebuying process, educate yourself by talking to a local experienced real estate agent, using online platforms and resources, and attending a first-time homebuyer’s class. This step will help you understand the basics of buying a home. You may also qualify for grants by just attending and getting the certificate and it’s valid for two years.
Always ask questions about anything you don’t understand. All the professionals in this process are supposed to work for you and your best interests.
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2. Get financially prepared
Review your financial situation with your CPA or a tax professional to establish savings for a down payment, closing costs, emergency funds and other expenses that may arise.
Obtain a copy of your credit report, work on improving your credit score if necessary, and aim for a 680 and higher to get the best interest rates.
Work on reducing debt. Don’t buy the dream car first. Buy that after you buy a home. Credit card debt and car debt can hinder your purchasing power. Do not become a co-borrower for others. There is no such a thing as a co-signer. You are financially responsible.
3. Pick the right real estate agent
Research and choose a reputable real estate agent experienced in the area you want to buy in, who will assist you in finding suitable properties, negotiating offers, navigating the process and connecting you with other trustworthy professionals. Always do your due diligence and check for reviews, ask about their experience and interview them. Choosing the right professional is important. Don’t blindly go with anyone. This can cost you. A suitable professional will help uncover good loan programs and connect you with the right home.
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4. Get pre-qualified for a mortgage
Contact a loan officer or mortgage broker to get pre-approved for a mortgage. This is a crucial step as it helps you understand how much you can afford and strengthens your position when making an offer. Only look at homes within your budget.
Sometimes, you may not get approved for the amount you need to buy your desired area, but the loan officer can help guide you in the right direction to be ready to buy or how to get more buying power.
Another helpful tip is to look into various loans and grants available in Massachusetts.
For example, an FHA loan is a low money down payment program with a down payment as low as 3.5% depending on your credit score. This is also an opportunity to look for down payment assistance and grants. A good loan officer and realtor can tell you what offers are in the area you want to buy in.
You should also look into the NACA program; local banks often have grants; and MassHousing can help low to moderate-income buyers.
NACA Housing Program: The Neighborhood Assistance Corporation of America is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership by making it easier financially and teaching buyers how to become a homeowner.
MassDREAMS (Delivering Real Equity and Mortgage Stability): This is a Massachusetts program funded with COVID relief money that provides down payment and closing cost grants to first-time homebuyers who meet the program’s eligibility criteria and who currently live in one of the 29 communities that were disproportionately impacted by the COVID-19 pandemic: Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, Westfield and Worcester.
MassHousing: MassHousing is an independent, quasi-public agency that provides financing for affordable housing in Massachusetts. It offers down payment assistance of $30,000 to $50,000 for eligible homebuyers depending on where you live in Massachusetts.
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5. Once pre-qualified, lets go home shopping!
Make a list of your desired home features and criteria to guide your search then start actively searching for homes with the help of your real estate agent.
Attend open houses, schedule private showings and view potential properties. This is when your agent needs to be proactive to help you.
Make yourself available to look at homes. Your dream home, newly listed, will not wait for you. You’re competing with others. Go during daylight, slowly look everywhere and bring all decision-makers to your first showing.
6. Make an offer, once you fall in love with a home
Once you fall in love with a home make an offer, work with your agent and ask the right questions: How much should I offer? How much is this home worth? Learn and research the area.
Ask for how much comparable homes are selling for in the area. Tell your agent about concerns you may notice.
If you see something you’d like included in the offer — a lawnmower, a piece of furniture, appliances or even a classic car you see in the garage — this is the time to tell your agent.
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Offers will include price, contingencies, type of financing, timing and closing date.
You will also include an EMD (earnest money deposit), typically of $1,000, to go along with your offer to show you’re serious.
Remember the pre-qualification letter, now’s when it will be shared with the seller to show the seller you have taken the necessary financial steps to acquire their home if given the opportunity.
7. Offer is accepted now it’s inspection time
Schedule a professional home inspection to identify all the good, not so good or potentially significant issues with the property, put your phone away, and follow your appraiser everywhere, ask questions. Remember, this is for you and paid by you, and for a large investment you’re about to make.
Review the inspection report and determine if you want to move forward, withdraw your offer, negotiate some repairs, or ask for a lower purchase price. Always remember to act in good faith.
Remember to seek guidance from your agent and your attorney and, most importantly, to buy something you love because you will own it and your loan will be for 30 years and no one should pressure you to make this decision.
It is sometimes necessary to bring additional professionals in if you find some issues and your inspector recommends further inspection.
Vicente Realty has seen situations where structural engineers, plumbers, roofers and contractors are brought in for further inspections and recommendations. Your initial home inspector generally makes this recommendation. Do not ignore them.
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8. If you are satisfied with your find, you can move on to the purchase and sale contract
Sign the “purchase and sales agreement,” a legally binding contract outlining the terms and conditions of the sale, once you are content with everything from the inspection.
This will be reviewed and explained by your real estate attorney. You will also make another deposit at this stage, usually larger.
All deposits are credited to you at closing. Everything is negotiated since the offer needs to be included in this new and more extensive contract, and this will be shared with your financial institution and all parties once signed.
You can breathe a little now, you’ve completed an important stage, but we are not done yet.
9. Now the bank or your lender will do their job to securing financing for you
Finalize your mortgage application and provide the necessary documentation to your lending professional. Sometimes, it might feel like they repeatedly ask you for the same thing: smile, breathe and give it to them.
Pre-qualification is not an approval, and it’s not clear to close. They will work on underwriting the loan. The lender will order an appraisal to determine if you’re not overpaying for the property.
A lender will not lend more money than the value of a property. This is a good protection for you and them. The attorney will conduct a title search to ensure there are no legal claims against the property, and the attorney will purchase title insurance at closing on your behalf to protect your ownership rights and the title on your home.
You will also get quotes from insurance agents to protect your purchase. Select what suits you best. The attorney will make sure the person selling you the home legally can and will also make sure the asset has a clear and marketable title in case you want to sell it in the future. Once the attorney is done with their job, you have provided all your loan officer is looking for and the property value is confirmed by a third-party appraisal accepted by the lender — the next step will be finance commitment and ultimately clear-to-close.
Remember, we talked about breathing earlier. Once you’re given a clear-to-close by your loan officer, you can now breathe a little more. We are almost there.
10. You did it, closing and happy dance time
Work with your real estate agent, attorney and lender to prepare for the closing, ensuring how much the final amount you will need to bring to the closing day, if wired, or in the form of an official bank check. Verify all this on a phone call or in person, never via email due to scams.
Do a final walkthrough to ensure the property’s condition is the same as when you last saw it, if any repairs negotiated have been completed and that kind of thing.
Vicente Realty suggests doing this one to two days in advance. The day before closing, drive by and ensure the home is still standing before you sign the final documents. Attend the closing meeting to sign all required paperwork with your attorney, bring remaining funds, ask questions, and once signed by both seller and buyer and it gets recorded at your county registry of deeds you’re can officially take ownership of the property.
Breathe, smile, dance, celebrate it’s YOURS.
Enterprise staff reporter Alisha Saint-Ciel can be reached by email at stciela@gannett.com You can follow her on Twitter at @alishaspeakss and Instagram at Alishaatv . Support local journalism by purchasing a digital or print subscription to The Enterprise today.
