5 steps to save up for a Boston condo for sale

Determine How Much You Should Save

 By putting down 20 percent of the purchase price, you increase your chances of getting approved for low-interest financing without private mortgage insurance. The rest of the money goes toward prepaid items such as homeowners insurance and condo association fees. Moreover, you will likely be required to show you have three months of household expenses saved up as cash reserves. By striving to save up this 20 percent, you can close with a loan-to-value ratio higher than 80 percent if market conditions urge you to do so.

Isolate a Savings Account

You are better off setting aside a bank account that serves the sole purpose of keeping the funds you are saving toward your Boston condo purchase. Draft a budget and figure out a way to transfer money directly from your paycheck to this account, which you should not withdraw from unless the mortgage lender instructs you to do so prior to closing.

Earn Interest

The Federal Reserve intends to raise interest rates in 2018, and it may than one increase in 2018. If you have a target date to purchase your Boston condo a few months down the line, you may want to look into a three-month certificate of deposit with a “bump-up” feature that increases your rate of return when the Federal Reserve votes to increase the prime rate of lending.

Cut Down on Expenses

Cutting down on monthly expenses is always easier said than done, but it happens to be very effective. Think about the things you can realistically live without. For example, you could save more than $250 over three months if you eliminate your daily cup of Starbucks. Cooking and eating at home is another strategy that allows you to save up even faster.

Maximize Your Earning Potential

Freelance work and taking on as much overtime as possible can help you reach your financial goals, but you don’t have to be alone in this endeavor. If your partner or one of your relatives will occupy the condo, he or she should also consider maximizing his or her income.

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Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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