Steps you will take to find and close the home of your dreams:
Obtain pre-approval for financing:
Tme frame: 24-48 Hrs
Knowing how much you can spend on your investment is critical. Condominiums require at least 10%-20% down; single family homes generally require at least 20% down. Commercial property may require 25%-30% down payment.
Find an apartment or house:
Time frame: 3-6 months
Depending on the type and style of home you are looking for, the length of your search will vary greatly. The average home buyer looks at 20-30 residences and makes offers on one or two before making a deal. Buyers with access to the Internet save time by using our daily email alert service. Typically clients using our Internet search services find their home in approximately one third to half the time and inspect 10 homes before making a deal.
Negotiations for the Contract to Purchase:
Time frame: 3-10 days
Everything is negotiable so inquire about assessments, fixtures, air conditioners, appliances, fireplaces, washers and dryers, etc. You will make an initial Earnest Money deposit at the time you make an offer, typically $1,000, it will be held in Escrow for you by the licensed broker representing the seller until the closing. All deposits you make are refundable to you as long as you fulfill certain obligations of the Contract to Purchase. Your new home will be delivered 'broom clean' on the day of your closing.
Home Inspection
Time frame: 10-14 days from the date of your signed contract.
During this time your choice of Massachusetts licensed home inspector will visit the property and with your input inspect and investigate it's structural and mechanical condition. The home inspection report is generally available within 12-24 hrs. Potentially another round of negotiation takes place if hidden defects are substantive and or the home inspector's report indicates repairs are necessary.
Applying for a mortgage:
Time frame: 11-14 days from the date of your signed contract.
Mortgage applications cannot be processed without an executed contract. If your purchase is being financed, the seller will require a commitment letter from a lender. These letters are generally the last items to be completed prior to closing.
Signing the Purchase and Sale Agreement:
Time frame: 14-21 days from the date of your signed contract.
Generally, in a sales transaction, a Massachusetts real estate attorney represents each buyer and seller. The seller's attorney or broker draws up the Purchase and Sales Agreement for the buyer's attorney; the buyer's attorney does 'due diligence'. The buyers sign the contract and forwards originals along with a 5%-10% certified deposit; the sellers then execute the contract. Possible contingencies include: Financing, Condo Board Approval and closing dates.
Receive a Commitment Letter from the Lender:
Time frame: 30-45 days from the date of your signed contract. This is the final contingency, get ready to close, move and settle in to your new home.
Closing:
Time frame: 45-60 days from the date of your signed contract.
Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times.
