If you’re considering buying a Greater Boston home this year; you’ve probably started looking online at the current homes available in Brookline, Boston, Newton or the other surrounding areas.  It can be an exciting time as you dream of your ideal home and anticipate finding a beautiful and perfectly priced home in Greater Boston.


The current climate in today’s housing market is ideal for buyers as the historically low mortgage rates and home prices are exactly what potential home owners want!  However, before you jump right in and venture out to open houses, there are a few things you’ll want to know about the home buying process.


As a Greater Boston Real Estate agent, my goal is to provide you with pertinent information about the Greater Boston Real Estate market that you need to know!  For instance, there are a few changes that have been made this year that have affected the home buying experience; one of which is qualifying for a home loan.


We’re all aware that the national housing market over the past few years has seemed to hit rock bottom.  As the nation continues to strengthen its weak knees in recovery, lenders have tightened the reins on those who are able to qualify for a loan.  They’ve seen the severity of people borrowing beyond their limit and are attempting to help heal the housing market by keeping a close eye on those who are able to buy homes.


Now, this doesn’t mean that you have to give up your dream of buying the Greater Boston home you’ve had your eye on; it just means you have to be more prepared than ever and have your financing in order.  Below are four tips I feel will be helpful as you begin the process of qualifying for a home loan.


-  Have the right credit score- Credit scores are moving to the forefront of being approved for a Greater Boston home loan.  Most lenders are expecting a credit score of 600+ even for FHA loans.  A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.


-  Shop around- The interest rate is important, but there are other costs to consider such as discount points and even the type of mortgage loan. When shopping for best rates, compare various combinations of discount points and loan types. Your Greater Boston Real Estate agent can help you decide on the best option. 


-  Know your borrowing limit- If you’re not sure how much you want to borrow, a good rule of thumb is to look at the Federal Housing Administration requirements.  FHA will limit mortgage payments at 31% of gross monthly income before taxes for most buyers.  This can help ensure that you’re not getting in too far over your head.  If we’ve learned anything over the past few years, it’s to play it safe in the housing market.  


-  Consider a No-Closing-Cost Loan- If you have positive equity, but are lower on cash up front, you do have an option to choose a no-closing cost loan.  This simply means that you’ll have a slightly higher rate, but the closing costs will be paid over time instead of up front. 


Qualifying for a home loan is the first step in successfully buying a Greater Boston home, and I hope these tips help prepare you for this important process!  If you have further questions about qualifying for a Greater Boston home loan, the Greater Boston Real Estate market or are ready to begin your search; please let me know!  


I’d be happy to meet with you, answer your questions and help you along each step of buying one of the beautiful homes or condos that Greater Boston has to offer.  I look forward to hearing from you!



Eric Glassoff

Greater Boston Real Estate Expert


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