Buying a home is a life-changing decision that can seem complicated at times.  Whether you are a first time home buyer or an expert, at Century 21 Shoreland we are committed to making your home buying experience as seamless as possible. 

There are many advantages to owning your own home.  Interest paid on your mortgage and property taxes are both tax deductible, while rental payments are not.  Over time, you will build equity in your home, instead of a landlord’s.  Home ownership also provides you with more control in your living situation.

In the following section, steps for buying a home will be broken down and include some helpful tips. 

• Is buying your own home right for you?
• What size mortgage can I afford?
• Consulting a mortgage lender for a loan
• Home buying programs available to you
• Finding a home
• Making an offer
• Home Inspections
• Homeowners Insurance
• Things to know about closing

Is buying your own home right for you?

• Making sure you are financially and mentally ready to own your own home is the first step.  You may have to ask yourself a few questions before deciding that owning your own home is the right choice for you:
• Am I financially stable? 
• Do I have a good credit rating? 
• Is my savings substantial enough to cover closing costs and a down payment? 
• Am I ready to be responsible for the upkeep of my own home?
•  If you have decided that owning your own home is the right choice for you then let’s move onto the next step.

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What size mortgage can I afford?

• Congratulations on making the decision to own your own home!  In the next step you will need to figure out the mortgage amount you can afford.
• Income, credit score, monthly expenses, and current interest rates will all be considered when calculating how much you can afford.
• Mortgage Lenders are available to help you through the pre-approval process. When complete, you’ll know approximately what your monthly payment might be, and you’ll be able to determine the correct price range of homes to look at.
• Having a pre-approval letter from a lender strengthens any offer you might make on the purchase of a property.  It shows the seller you are ready, willing, and able to complete the deal!
• One important thing to remember is that just because you are pre-approved for a certain amount, it does not mean you have to spend the entire amount.  See if the monthly payment will fit into your budget, leaving you enough money for life’s incidental expenses.

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Consulting a mortgage lender for a loan

• Mortgage lenders will be able to provide you with accurate information based on your financial status and needs.
• Shop around for the best possible deal that suits you.  There are many types of loans and the type of loan will vary among borrowers.
• Factors that will play a role in the type of loan you need are things such as the amount of money you want to use as a down payment, how long you plan to stay in the house, and credit scores.

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Home buying programs available to you

Feel free to contact your local Century 21 Shoreland office to inquire about our detailed First Time Homebuyers Seminar.  This complimentary course is open to all as a first time homebuyer or as a refresher course.

Register for the First Time Homebuyers Seminar

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Finding a home

• What price home can you afford?
• What type of home are you looking for: Single Family, Condominium, Townhouse, etc.?
• What style home are you looking for: Ranch, Colonial, Cape, Victorian, etc.?
• How many bedrooms do you need?
• Make a list of things you need in a home, and things you want:
  • Open floor plan
  • Close to town
  • Walking distance to school
  • Type of neighborhood (child friendly, busy roads, proximity to beaches, grocery store)
  • Ground floor master bedroom
  • Fireplace
  • Garage(s)
  • Handicap accessible

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Working with a Real Estate Agent

The relationship between a homebuyer and his or her buyer's agent must be based on trust, mutual goals, and understanding. The homebuyer entrusts the buyer's agent to always keep his or her interests first and foremost.

What to look for in an agent:

• An understanding of your needs
• A willingness to work with you until your needs are fulfilled
• Professionalism
• A familiarity with the neighborhoods you like
• Experience with the price range in which you have an interest
• Professional designations: for example, GRI, Graduate of the REALTORS® Institute or ABR, Accredited Buyer’s Agent
• Strong references from previous buyers
• College degree or higher education

Some questions to ask a prospective buyer's agent:

• How long have you been in real estate?
• Are you a full-time agent?
• Are you familiar with the area in which we want to look?
• How many home sales did you participate in last year?
• What is the average sold price of the homes you sold last year?
• Do you normally work with sellers or buyers?
• How many buyers are you presently working with? How many sellers?
• Where do you feel your strengths lie?
• Can you give me three buyer references?
• Will you be present at closing?
• Will you work with me personally or will I also work with an assistant or associate?
• Will you be representing me, the seller, or both?
• How familiar are you with searching for homes on the Internet?
• How will you be compensated on the transaction?

Massachusetts law requires that at the first face to face meeting with a customer/client about a specific property, an agent must present for signature a Mandatory Licensee-Consumer Relationship Disclosure. This form is merely a disclosure, and does not obligate the customer/client in any way. You may decline to sign it, but the agent must present it.

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Making an Offer

• What is included in the offer given to the seller?
  • The projected selling price
  • Any items that you would like the seller to include in the sale of the home – appliances, furniture, wood/coal stoves
  • All contingencies including but not limited to home inspections, mortgage commitment/financial, and the sale of your current home
  • Down payment information
• What happens if my offer is rejected?
  • A counter offer can be made by the seller and buyer until an offer is accepted

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Home Inspections

• Home inspections consist of a top to bottom inspection that uncovers possible problems within the home.  It will potentially save the buyer from purchasing a home with major plumbing and/or electrical problems.  The home inspection, if a contingency in the written offer, gives the buyer an out if serious problems are discovered.  It also gives the buyer the ability to negotiate with the seller to either fix the problems that are detected or to adjust the price to allow for repairs.
• Home inspectors are paid professionals that scan the home for safety, structural, or major issues that need addressing either immediately or within the near future.  The home inspectors are not responsible for appraising the home for its current value or market price.

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Homeowner’s Insurance

• Homeowner’s insurance protects the owners of a home against disasters.  Homeowner’s insurance policies will vary from state to state and depends on the individual home and location.  Standard policies generally cover your home and your possessions.  Additional coverage can be added to policies such as wind and flood. 

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Things to Know About Closing

Closing costs are additional fees that are above and beyond the selling price of the home in question.  The additional fees can include things such as escrow fees, property taxes, and title insurance.  These costs are absorbed by the buyer, seller, or both. 

Prior to closing day, all utilities should be notified so a final reading can be made and services can be switched over.  If the home has oil, the buyer will have to provide the seller a payment for the amount of fuel left in the tank.

On closing day you will need a form of personal identification, such as a driver’s license.

All papers will be signed.

Keys will be transferred.

Enjoy your new home!

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