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Getting your first mortgage in Massachusetts

Posted by  on Apr 16, 2009
 
You may be in the market for a first home with a mortgage in Massachusetts, or you may be relocating from another state and purchasing in this state for the first time. Either way, there are several things you should know about getting a mortgage in Massachusetts. It’s important to be educated on current laws concerning home ownership and mortgages in Massachusetts, so you are not surprised by what you find while navigating the real estate and home loan markets here.

It’s important to know what other people are spending, so you know whether you’re getting a good deal or not. The median home in Massachusetts has a price tag of about $185,700. Unfortunately, the values of Massachusetts homes have not been appreciating at the same rate as homes in other states. In many parts of the state incomes are still rising slower than home values are. This means that fewer and fewer people can purchase a home with a traditional mortgage loan.

The cost of a home loan in Massachusetts also depends on the area you live in. In Marion, Massachusetts the median-priced home cost about $700,000 in 2005, which is high above the median home price for the whole state. That same year the median price for a home in Rochester Massachusetts was $450,000 and in Acushnet, Massachusetts it was $350,000.

It is a good idea for a prospective home buyer to shop around in different zip codes to see where the best location for their home and mortgage budget is. Different lenders will also have different mortgage interest rates and incentives, so you must shop around for that, too. It is important to remain flexible in regards to location and such, but also consider the rate at which homes values are appreciating in your destination of choice. If the value of your home doesn’t go up over the years, it’ll make paying off your mortgage a lot less pleasant.

There are a few laws home buyers should be aware of as well, prior to shopping for homes and mortgage rates. First of all, Massachusetts prohibits the issuance of balloon payments in mortgage loans. The state also requires all properties with individual sewage disposal systems to be inspected by a state-approved assessor. A home loan cannot be closed on any property that has not had the necessary repairs completed to pass inspection.

Now that you know a little more about buying a home with a mortgage loan in Massachusetts, it’s time to start shopping. Many different lenders are available to suit your needs, whether you have a small budget or a large one. First time home buyers often have more mortgage options than they think.

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