I’m taking you on a Home Buying Process from Start to Finish in Massachusetts. This journey is a typical Ma Real Estate Timeline, when buying MA home. Make sure you stay until the end because I have a huge tip that will save you thousands of dollars.
I’ve met with the buyers in an initial meeting, and at that meeting I explained what I do and my buyers and basically are checking me out to see if we will be able to work together. It’s really important to have a good working relationship.
Fortunately for me, my buyers chose me and I passed the test, so we’re off to look at homes. We’ve looked at several homes and we did not get them, as I really need to be mindful of their budget.
We found a house! The buyers called and they want to submit an offer on the house, so it’s time for me to get working. I ran the comps, and we’ve decided what we will offer, the timeline, the mandatory disclosure’s signed, I have the pre-approval letter and some other special things.
Great news! Our buyers’ offer was accepted. I’m super exited for them, and now they’re off to schedule their home inspection. The home inspection is usually scheduled within 10 days of the offer day.
I have a list of inspectors, but always another resource is the state of Massachusetts where they have a licensed list of inspectors. This is a day for buyers and sellers where they really get very nervous, but don’t worry because everything in the house can be repaired. The purpose of a home inspection is to look at the house from a structural standpoint to make sure the safety standards are met and the new homeowners are safe living in the house. Today is not a day to discount the house based on cosmetics, such as flooring, paints, and cabinetry. Home inspection is not complete without a stop to Town Hall to pull the files that are in the public record, including but not limited to zoning, building permits, and the Board of Health if the house is surfaced on a septic system. It’s been 48 hours and the buyers have reviewed the home inspection report, and I’m here to pick up the radon test.
We have successfully negotiated some of the repair items for this home purchase and the attorneys have been contacted to draft the purchase in sale. The buyers signed the Purchase & Sale, and have given their second deposit for a total of 5% of the purchase price. The Purchase & Sale is the document that triggers the bank to open the file and start processing the loan. The bank orders a third party, independent property appraisal, and the attorneys order the title report to make sure it is a clean title on the day of closing. They buyers start packing and they’re getting ready for closing. We’re about a month out. It’s important for the buyers not to open or close any credit lines and make any huge purchases like furniture or appliances.
The mortgage commitment letter has been issued through the buyer for the loan on this specific piece of property. And we’re about 10 days away from closing. It’s time to start calling for home insurance. A one year premium needs to be paid in full prior to closing, and the home insurance company will send the binder over to the attorney as part of the closing package.
The buyer can now call and order utilities in their name and change their address. It’s three days before closing and the attorney has distributed the closing disclosure that delineates all the charges. In this document is a final amount of money the buyer needs to bring to closing. It also needs to be in the form of a cashiers check, so plan to go to the bank the day before. It can take an hour or so for the bank to process the check.
It’s closing day and the buyers are meeting me here are the property for a final walkthrough. This is done to make sure the house is in to the manner to which they expect, and it’s also to make sure a tree hasn’t fallen in the house, there’s not a broken window, or a water pipe burst because the sellers moved out.
We’re at the closing and the buyers have brought two forms of picture ID, the money required to purchase the house, and a pen, in exchange for signing all the paperwork, they’ll get their keys to their new home.
Now, as I promised, here’s a tip. Banks are paid in arrears as opposed to rent when you pay up front. So you have a one month reprieve when buying a home. The thing to do is when the first mortgage payment comes due, pay it in full, then make another half month mortgage payment on the 16th or 17th. Then, go ahead on the first, make the rest of the half of the mortgage payment. And you will reduce over time the amount of interest that you will pay the bank in total because the interest is compounded daily. You could probably just set that as automatic pay from your bank account.
If you are ready to start building wealth, I would love to help you. As always here in Hottel Real Estate, we treat you the way we would want to be treated, buying and selling every house as it is our own. Make it a great day.
Here is my email: JulieMarion@HottelRealEstate.com My # 978-877-2873