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Tag Archive for: mortgage

The State of the Massachusetts Housing Market

May 11, 2022/in Housing /by Cara Chatellier

I’m getting a lot of questions about what’s going on with the market. And it’s a great question, with no one specific answer! The drastic increase in home prices we saw last year has had a great many impacts on the process of buying and selling, including the frequency of bidding wars and the amount of cash offers over the asking price. Though the high demand and low inventory remain heavily in play, the Massachusetts housing market is not expected to be as intense as last year’s.

For Buyers:

If you’re a buyer, it’s important to note that interest rates are inching up, and they will probably continue to inch up this year. The average 30-year fixed mortgage rate is now at 5.11%—the highest level since 2010. So what you could have afforded last fall or last summer is likely going to be different than what you can afford now. This means it is important to check in with your lender, get an updated preapproval, and know what you can afford. On a more positive note for buyers, the increase in interest rates has led to a decrease in homebuyer competition for the first time in six months. This will probably, in some cases, lower the amount of multiple offers and over asking bids we’ve been seeing. 

 

According to Redfin, “The drop in homebuyer competition is one sign that the housing market is starting to slow down. Mortgage applications, home tours, and online housing searches are also declining, and more sellers are lowering their asking prices after putting their homes up for sale.”

 

Home Inspections:

Another trend I am seeing, which is good for you buyers, is an uptick in home inspections. I had a property in Salem a few weeks ago which got four offers; three of which had home inspections. Many people chose to waive home inspections in 2021 in order to get an upper hand in buying property, due to the immense competition they were facing from their fellow buyers. Getting a home inspection can protect a buyer not only from costly repairs, but from potentially major structural or safety issues hidden within a property. It is reassuring to see more home inspections being performed, as they can significantly benefit a prospective buyer. You can read more about the benefits of home inspections here. 

For Sellers: 

If you are looking to sell, it is important to note that pricing is still very competitive. Though the large imbalance of supply versus demand is starting to improve, we still have a shortage of housing up here on the North Shore. If a house is being priced appropriately relative to the market, sellers are continuing to get plenty of appropriate offers, many of them over asking. But, just like I said for buyers, that trend may be coming to a slowdown as interest rates tick up. If you’ve been on the fence, this may be the year to strongly consider selling your home while the market is still strongly in your favor. 

Massachusetts Housing Market- In Summary

Although these tips are based on research and my personal experience as a realtor, we don’t know what interest rates will be next year, and we don’t know how inflation is going to impact this market. It is impossible to predict the housing market’s future with 100% accuracy, so it’s most important to base your decisions on your own financial state and needs. 

Whether you are looking to buy or sell, getting in contact with a professional is a great first step. Please reach out with any questions you may have on the housing market, I’m happy to answer them to the best of my ability. 

https://mauraallardandcompany.com/wp-content/uploads/2021/05/Maura-Allard-Realty-NorthShore-MA-1.png 804 1534 Cara Chatellier https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Cara Chatellier2022-05-11 20:22:512022-05-11 20:22:51The State of the Massachusetts Housing Market

Understanding the Closing Process on Your New Home

June 9, 2021/2 Comments/in Loans & Mortgage, Resources, Uncategorized /by Cara Chatellier

If you are looking into details on what exactly the closing process entails on your new home, you’re likely in the final stages of the process to homeownership, so, congratulations! Although the journey may feel like a long one, each step in the process is imperative to protect you, the sellers, and your new property. Your offer was just accepted and now closing is upon you. Typically closings take anywhere between 30 and 60 days, but in some instances, they can be longer or shorter depending on the terms set forth in your original offer as discussed with your agent. 

When it comes to closing on a home, whether your first or tenth, there are various steps that you will need to take to ensure full confidence and satisfaction in your purchase. These 10 steps are the exact route you need to take to reach your final destination as a homeowner.

1. Choose your escrow agent

The escrow, or closing, agent will be your primary point of contact when it comes to closing on your new property. They verify that all documents are completed and signed by both parties, all terms and conditions of the offer and loan are met and that closing happens in a timely manner. The escrow agent works closely with your realtor to coordinate all required paperwork throughout the process. Typically the escrow agent is a neutral third party in the transaction, acting on behalf of both parties to ensure a smooth transition of ownership for the home. 

2. Purchase homeowners insurance

Homeowner’s insurance is required for the purchase of any home. The insurance must be purchased prior to closing and proof of coverage must be presented during the closing stage. You can usually work with your current insurance company to provide a new quote on your property. Homeowners insurance, just like car insurance, varies greatly based on location, size of property, your insurance history and other factors. The average cost of homeowners insurance in the US is about $1,200 a year. 

3. Invest in title insurance

Title insurance is a one-time expense that you pay prior to closing on your home. Title insurance, although not required in every state, is added protection for you and your home. Title insurance protects you in the event that someone, at any time in the future, stakes a claim on your property claiming it as theirs. If you opt-out of a title insurance policy for you, you could potentially lose your home to a random claim on it in the future. The average cost for title insurance, to the buyer, is about $1,000. 

4. Meet all conditions

Before you can officially close on a home, all conditions of the loan must be met by you, the buyer. All conditions of your loan are clearly stated in your loan document, but typically they include things like income verification, proof of obtained homeowner’s insurance, down payment details, final appraisal that is at or below the amount of the loan and any other specifically negotiated terms. If you have any questions or concerns about meeting all of your loan condition requirements talk to your lender and realtor as soon as possible to avoid any snags in the process. 

5. Get ready for your move

Whether you currently own your home or are living in a rental property, now is the time to get ready for your move. Schedule movers, sort through rooms and storage spaces and plan out exactly how you plan to move your things from one spot to another. If you’re downsizing you may want to consider holding a yard sale to get rid of extra items you no longer need or donating any excess to a local charity. If you’re moving to a bigger place, consider planning out your furniture and appliances purchases now so that they are ready to go on move-in day. Don’t forget to schedule time off from work, if needed, to get your place in order.

6. Obtain the ever-important closing disclosure

This nationally recognized form is the most critical and comprehensive form in your closing process. Within this disclosure, the loan requirements are outlined in their entirety, including an itemized list of closing costs by party. This form should be delivered to you at least three business days before the closing date to ensure you have enough time to review it. If the details within are mismatched from the original loan agreement, talk to your lender as soon as possible to reconcile in an efficient manner.

7. Complete a final walkthrough of your new place

The final walkthrough is an important final step in your closing process. It is typically scheduled about 12-24 hours before your final closing timeline. This in-person review gives you, the buyer, the opportunity to walk throughout the property and ensure that the seller left the home in the condition that you agreed to at the time of offer acceptance. This is also a time to review any repairs that were requested of the seller and to make sure they are fully moved out in time for you to move in. If things don’t look as they should, your realtor will work with the sellers to ensure things are aligned promptly. If major repairs need to be made, the closing can be delayed.

8. Finalize your documents

At closing, the escrow agent will request a list of documents that they require of you and your co-borrower. Organize your documents ahead of time so that you are fully prepared for the meeting. Typically they require documents such as photo identification, income verification, a list of home addresses over the last 5-10 years and a money order or bank certified check to cover the closing costs for “cash at close” requirements. Verify required documents with your realtor and lender prior to meeting with them. 

9. Legally obtain your home and your new set of keys

The last step in the process between you and the seller is to legally transfer the property from their name to yours. At this step final signatures are obtained and cash, if applicable, is exchanged. Once this is completed the home belongs to you and you get the keys to your new home! A best practice is to change out the locks on your home once you have keys in hand to maintain the highest level of security at your new property. 

10. File a declaration of homestead

A declaration of homestead varies by state, but is a good idea to obtain based on protections it can provide at both state and federal levels. In some states throughout the country, a declaration of homestead is automatically added at the time of home purchase, but some states require that you obtain one on your own. In short, a declaration of homestead can protect you in the case of bankruptcy filing, loss of a spouse or exempt you from certain taxes based on residence. A declaration of homestead registers you at state and federal levels, showing exactly where your primary residence is located. Check with your state government, lender or realtor to verify how your state handles this declaration.

Getting an accepted offer on a home you love is a great feeling, but it is only the first step in the home buying process. Once both the seller and buyer agree to all terms and conditions of the offer, the closing stage begins. It is important to stay on top of the steps required to successfully close on a home so that you are as prepared as possible during this new season in your life. If you are in search of a new home or considering putting your home on the market, contact me, we would love to help you through the realty process, no matter what side you find yourself on.

https://mauraallardandcompany.com/wp-content/uploads/2021/06/Understanding-the-Closing-Process-on-Your-New-Home-Maura-Allard-Realty-Gloucester.png 1208 1824 Cara Chatellier https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Cara Chatellier2021-06-09 02:05:072021-06-09 02:05:07Understanding the Closing Process on Your New Home

Understanding a Mortgage Pre-Approval

May 10, 2021/in Loans & Mortgage /by Cara Chatellier

 

When it comes to purchasing a home, a mortgage pre-approval is often the first step in your process. It is nearly impossible to begin your home search without understanding the amount of money you qualify for. No matter the type of loan you decide to use, from VA to conventional or FHA, all mortgage lenders can (and should!) provide you with a pre-approval to use as the basis in your home purchase search. With this in hand, you can confidently work with a realtor to scope out and secure the home of your dreams. 

A mortgage pre-approval dictates your purchasing power. 

In short, a mortgage pre-approval is an official letter that you receive from a lender that advises the max amount of money you can borrow for the purchase of a home. It shows realtors and sellers that you have been vetted and are pre-approved for a home loan. This provides security for all parties involved. Most lenders use the terms, “preapproval” and “prequalification” interchangeably when it comes to a borrower’s purchasing power, but there may be a slight difference that you want to look into. Typically, pre-approvals require a more in-depth review of a borrower’s credit history and financial health. With prequalifications, some lenders don’t require a full credit review prior to providing you with their prequalification letter. It is best practice to stick to one that reviews your financial health to set you up for the best home purchase success once you decide on a home to put an offer in on. 

Mortgage pre-approvals require personal information.

In order for lenders to make a reasonable decision on your pre-approval request, personal information must be provided and reviewed securely by your lending institution.

Some of the most standard and requested information includes:

  • Credit history 
  • Proof of income
  • W2’s for the last two to three years
  • Pay stubs
  • A copy of your identification (license or state ID card)
  • Bank statements
  • Social security card
  • Asset list
  • Debts to determine your debt to income ratio

Pre-approvals are not indefinite in their timeframe.

Although pre-approvals are the best way to secure your stance in the real estate market as a buyer, they don’t last forever. Going into the purchasing process knowing what you want in a home is important to beginning the search, even prior to your pre-approval receipt. Once you decide on purchasing a home sit down and make a checklist of what you need prior to seeking outside assistance from a lender and realtor. Include a pre-approval on your list of must-haves along with your dream home needs. Remember that it’s also important to have all documentation ready to go prior to meeting with your lender. This keeps things moving and keeps everyone involved more organized. As you search for your home, be concise in your decisions while keeping your pre-approval letter in mind. Typically, pre-approval letters are good for 60 to 90 days from issuance, but it varies by state. Check with your lender to ensure the exact timeframe on your pre-approval and request what additional steps need to be taken if you go past that timeframe without securing a home. 

There are many factors to consider when deciding to purchase a home. Whether it’s your first home or your tenth, a mortgage pre-approval is key to your leverage and security in the purchasing process. If you think now is the time for you to buy the home of your dreams, let’s work together and start your pre-approval process and home buying checklist today.

https://mauraallardandcompany.com/wp-content/uploads/2021/05/Maura-Allard-Realtor-NorthShore.png 1048 1992 Cara Chatellier https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Cara Chatellier2021-05-10 23:11:212021-05-10 23:11:21Understanding a Mortgage Pre-Approval

How to Leverage Your Home Equity

November 18, 2019/in Housing, Loans & Mortgage /by Maura Allard

Top Tips to get the most from your Investment

The North Shore real estate market is red hot! This year, we are seeing home sales consistently above asking price. This has caused regional pockets of significant appreciation and quick equity for the homes surrounding these sales.

Many potential sellers would love to trade up from their existing homes, but they’re nervous about finding a home and getting an offer accepted in this market. Don’t worry, there are still opportunities in this climate!  Working with an experienced Realtor who is knowledgeable about the market is critical.

I work closely with people like Stephen Lewis, a Licensed Mortgage Originator and Branch Manager at Drew Mortgage Associates. He offers a proprietary solution to access the equity in your home for up to 95% of its value, meaning that he can give you cash-out up to 95% of your home’s value provided that your credit and income profile meet certain guidelines.

This equity can be used for anything, including home improvements, additions, debt consolidation, personal investment, or higher education. If you’re interested in this program, Stephen’s contact information is below.

Stephen J. Lewis

Licensed Mortgage Originator/Branch Manager, NMLS# 25620

C : (781) 706-1145

O: (978) 750-1080 X 105

[email protected]

Check out my other posts about homeownership!

Prepping Your Home for Cold Weather • Easy Renovations • Energy Conservation at Home

0 0 Maura Allard https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Maura Allard2019-11-18 19:56:212020-06-23 13:24:02How to Leverage Your Home Equity

Homebuying and Preapproval

April 3, 2018/in Community, For Sale, Housing, Open House /by Maura Allard

What you need to Know

Your lease renewal is coming up and you have decided you are tired of paying someone else’s mortgage. The time has come to buy your first home.  Whether it is a studio, condo or single-family — the first step in the home buying process is to get pre-approved.  While it is oh-so-very tempting to just log on to the computer and fill a form out, I strongly advise finding a local, reputable mortgage company with a loan officer who will spend the time with you.

It is important that the loan officer pulls your credit and reviews your taxes and pay-stubs. They should take the time to explain how the mortgage process works, and review closing costs and escrow accounts with you.  Your loan officer should make themselves available to you to run numbers with you on houses that interest you.  Feeling comfortable with your monthly mortgage payment is VERY important and it should be foremost in the mind of you, your Realtor and your loan officer.

If you are ready to start looking at homes and need a recommendation for a loan officer, please feel free to reach out to me directly.  I would be happy to provide you with some names.

0 0 Maura Allard https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Maura Allard2018-04-03 19:53:552020-06-23 13:14:05Homebuying and Preapproval

How to Sell your Home when Fear sets In

March 19, 2018/in Community, For Sale, Housing /by Maura Allard

If I could coin one phrase I have been hearing repeatedly for the last two years is “I’m afraid we will be homeless”.  Many people are ready to sell their home and either purchase a larger home, downsize to a smaller home or condo or just relocate to another area.  What is stopping them from pulling the trigger on the listing?  FEAR!  Fear of their home selling days upon listing it and not being able to secure a new property to move to.  

This is a real fear and a justified one, because in this busy market with low inventory securing a new home with a home sale contingency can be challenging.  When I work sellers I encourage them to list their home with the contingency for the seller to find suitable housing.  This will buy you some time, but there will be an end date so a plan B will be necessary.  Sellers need to have a backup plan.  Renting on a month to month basis and a storage unit should be your plan B.  Nobody likes to move twice but moving twice may be better than feeling pressured to buy a home you don’t really LOVE and you should LOVE your home.

Thinking of selling, but scared where you’ll go?  Let’s start talking!

0 0 Maura Allard https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Maura Allard2018-03-19 19:50:482020-06-23 13:14:05How to Sell your Home when Fear sets In

New to the Market this Week! Multi-Family in Haverhill with Water Views

March 12, 2018/in Community, For Sale, Housing /by Maura Allard

Coming Soon in Haverhill!

Mint condition Multi-Family with water-views of the Merrimack River! Here you can enjoy the pleasures of a newer heating system, hot water heaters, roof, and windows. The first and second floor boasts 2 bedrooms as well as a large eat-in kitchen.

Move-in for Spring to enjoy the sunsets from your great fenced in yard!

https://www.facebook.com/MauraAllardRealtor/?hc_ref=ARSeWiuHuAfEmD9qNZNBSpG6mgBIJd24wggQvbabhmCOn9tr7LUzYBk28_L4YnGYdQU
0 0 Maura Allard https://mauraallardandcompany.com/wp-content/uploads/2023/01/Untitled-340-×-156-px-3-1-300x147.png Maura Allard2018-03-12 19:48:512020-06-23 13:14:05New to the Market this Week! Multi-Family in Haverhill with Water Views

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