Whether you are buying a new home or refinancing your existing one, applying for a mortgage is a much more thorough process than it used to be. Here are some simple steps to make things easier on yourself and to help ensure you close on your dream home:

• Find a great lender – An excellent lender is worth his or her weight in gold. The lender will find the most suitable loan program for you, spot problems early on (and work with you to help correct them), and know what you will qualify for and what you won’t. 

• Know where you stand – Pull your credit history as soon as you start thinking about making a home purchase. If anything questionable is in the report you can potentially address it before applying for the mortgage, and if your credit score is on the low side, you will have some time to work on improving it. Ask your mortgage lender for tips on how to improve your score and for other guidance to improve your borrowing position.

• Get organized – As part of your loan application, you are going to need to supply W2s and tax returns, recent paystubs and bank statements. Gathering them together now will prevent scrambling later. Also, if you cannot find your tax returns, you will have time to order them from the IRS.

• Be upfront and forthcoming – Are you delinquent in filing your taxes? Have you been sent to collection for unpaid bills? Is there something else looming that could impact your ability to get financing? The more forthcoming you can be with your lender about any financial skeletons in your closet, the more likely it is that you’ll be able to find a solution to address these matters in a proactive versus reactive manner. It’s better to be upfront from the get-go than keep something hidden in the hopes it won’t be discovered later.

• Choose your home wisely – To successfully get a mortgage, remember that it’s not just about whether you qualify – it’s also about whether or not the property passes muster in the eyes of the lender. If it’s a condo, the lender may want to see an association budget, the condo’s bank statements and the amount held in reserves. They may also need a condo questionnaire completed by one of the trustees, and the building may need to have an owner occupancy minimum or meet other requirements. The property will also be examined to make sure it has no pending litigation or liens against it. Bottom line: Make sure to ask questions about these items when you visit a property. Your real estate broker can also help you obtain this information.

• Prepare for closing costs – Your lender will provide you with your approximate closing cost figures so you can prepare ahead of time. Some lenders also want to see that you have enough funds set aside to cover your future mortgage payments for a specific period of time. Check with your lender on what their criteria is so you aren’t blindsided later.

• Remember it’s not over until it’s over – The lender will contact your employer a couple of days before the closing to verify your employment and salary one last time. Additionally, your credit will be pulled again to make sure you haven’t taken out any additional loans or made other purchases that could potentially impact your ability to pay your mortgage. Applying for new credit cards or other accounts could also have an adverse effect on your credit score. Speak with your lender on what you safely can -- and cannot -- do.

​Author: Donna Charpentier

Getting ready to sell your home? Preparation is critical to getting an offer and can have a big impact on how high (or low) that offer is.

Here are some tips to help you prepare:

• Locate condo documents – If you’re selling a condo, get all of your association’s condo documents in order. These typically need to be furnished within just a couple of days of an accepted offer. Find and file them now, so it isn’t a mad scramble later.
• Clean – The importance of cleaning cannot be underestimated. Everyone wants to move into a clean and tidy home, and they may never get the first impression of your less-than-fresh house out of their heads.
• De-clutter – You want every room in your home to look as spacious as possible. Clear kitchen and bathroom counters, shelves and other surfaces of anything that isn’t essential. Find a temporary home for extraneous or bulky furniture. Clean out and organize your closets and cabinets.
• Stage if needed – Buyers have a hard time imaging the space when it's vacant and rooms that are empty tend to appear smaller. Staging is not an expensive as you may think and homes that are staged often sell faster or at a higher price than those that aren’t. 
• Make repairs – Never fixed the broken garbage disposal? Have a hand rail that’s loose on the staircase? These items may sound minor, but if you have enough of them, potential buyers tend to see nothing but mounting dollar signs. It’s not uncommon for buyers to walk from a deal after an inspection reveals one-too-many issues. Address everything now to help ensure a smooth transaction.
• Require professional photography – Hire a real estate agent who pays for a professional photographer and doesn't cheap-out by taking their own photos. End of discussion. 
• Choose a real estate agent – Hiring the right real estate agent is the most important decision you will make. Interview a variety of agents and ask them pointedly what marketing they will do. A good broker should also have the knowledge and skills to expertly manage the transaction from start to finish.

​Author: Donna Charpentier

When purchasing a condominium, it’s very important that you ask questions to understand how the condo association is run. Unlike a single family where the owner has total control of its use, a condominium has conditions, covenants, restrictions and often additional rules that govern how the individual unit owners are to share the common areas or facilities. Common areas may include hallways, stairways, elevators, exterior areas, lobbies and even utilities such as the heating system.

To help home buyers better understand how a condominium association works, real estate law firm Gilmartin Magence LLP has put together a helpful list of questions that home buyers should ask. 

Here is a sampling:

• Is the association professionally managed or self-managed?
• What are the current monthly condominium fees for the unit? What is included in the fees?
• Are there any special assessments currently outstanding, approved or anticipated? If so, what is it for, how much is it and when is it due?
• How much does the association have in reserves? Does the monthly condo fee include a line item for reserves?
• Are there any problems or situations I should be aware of?
• Is there any outstanding or threatened litigation involving the condominium association?
• How many units are owner occupied? Is there a limit as to how many units in the building can be rented?

In addition to these questions, it’s also a good idea to ask how often the association meets (monthly, quarterly, annually) and to request a copy of the meeting minutes for the past year or so. Note that not all condo associations write formal minutes; in just a three-unit building, for instance, it is unlikely to have minutes.
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Additionally, you and your attorney should review the association budget and the condominium documents – typically the master deed, unit deed, declaration of trust and the rules and regulations for the building, if any.

​Author: Donna Charpentier

​© 2020 DONNA CHARPENTIER. ALL RIGHTS RESERVED.

The home inspection is one of the most important steps in the purchase of a home. It’s the buyer’s opportunity to learn as much as he or she can about the property from a licensed and objective professional before committing fully to the purchase.

We’ve seen inspections run anywhere from one to four hours, and by the end, the buyers’ eyes have usually glazed over from the amount of information they’ve just been given. The information can be confusing to even an experienced home owner. 

So, what exactly is the home inspection and what can you expect?

For starters, let’s first address what the home inspection is not. The home inspection is not intended to point out every small problem or cosmetic flaw in a home. Having said that, there is inevitably the buyer who presents the seller with a punch list of cosmetic or minor items in an attempt to negotiate a lower selling price. Most often, we see this tactic insulting the seller and backfiring on the buyer. We don’t encourage our clients to pursue this route and instead, we have them focus on what the home inspection is really for: to identify any structural, mechanical or other serious defects.

Much like getting a physical exam by a doctor, a home inspector does the same for your house. He or she will review the condition of the readily-accessible portions of the structure of the home, such as the roof, walls, ceilings, floors, windows, doors, basement and foundation. Additionally, an inspector will examine the heating, air conditioning, plumbing and electrical systems to make sure they are all working properly.

Given the importance of the home inspection, some thought and time should be spent on hiring the right person for the job. In addition to someone who is Iicensed and insured, we recommend choosing someone who is experienced in your immediate area, as there may be conditions that are exclusive to your specific neighborhood. As with any service professional, getting a recommendation from someone you know and trust is important. Your REALTOR® should be able to give you the names of reputable home inspectors. On average, in the Boston area, you can expect to pay about $500-$700 for a standard inspection depending on the size of the home. Additional inspections, such as to test for radon or lead paint, are an extra charge.

Taking your own notes or photos during the inspection can be helpful, although in Massachusetts it’s required that the home inspector provide a written report to you. It isn’t mandatory that the home buyer attend the inspection, but it’s certainly advisable. The inspection is a great opportunity to learn about your future home and also to ask questions.

Once the buyer has had a chance to review the report, he or she can withdraw the offer on the property if the inspection reveals more issues than the buyer would like to take on. Most often, the buyer goes forward with the purchase on the condition that the seller address any major items that need repair. The seller is under no obligation to do this, but often a deal is struck that works for both parties. Your real estate agent can provide guidance here on what is appropriate and negotiate the inspection items on your behalf.
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While it can be overwhelming, the home inspection is not something to be overlooked when purchasing a home. The money spent will be well worth it, and will help ensure your purchase is a sound one.

Author: Donna Charpentier

© 2020 DONNA CHARPENTIER. ALL RIGHTS RESERVED.