Good news for Boston condo buyers: despite the recent and much-anticipated federal interest rate hike, actual mortgage interest rates have barely budged.

That’s good news for buyers, who can expect to ride this low interest rate train for a while to come, til rates up sometime in 2019.

Just because rates are low doesn’t mean Boston condos buyers shouldn’t scrutinize everything about their loan! As a real estate buyers’ agent, I always advise my clients to avoid these common pitfalls.

1. Get your acronyms in order.

There are a few tools that home buyers can use to comparison shop for mortgages, and they may look like alphabet soup at first. A Good Faith Estimate (GFE) includes basic information such as the lender name and address, sales price, loan amount, interest rate, and type of loan. Then there’s the TIL (Truth in Lending) disclosure, which provides more details, and most importantly, APR. This little number is far more useful than the mortgage rate itself, because it includes points and fees. When you compare loans from lender to lender, be sure you’re comparing the APR and not just the interest rate!

2. Ask for a recommendation.

As a downtown Boston real estate agent overseeing a hundred plus sales each year, I get to know a lot of mortgage companies and mortgage brokers. I have excellent recommendations waiting for you, just ask!

3. Get pre-approved

. Most home sellers will not even look at your offer unless you are sending an up-to-date pre-approval letter along with it. A pre-approval is easy, an approval is a lot harder.

4. Be ready to apply and get approved quickly

Once you have an accepted offer, you’ll want to make sure you can meet the closing date on time. Do do that, your lender has to get you through the approval process quickly. Know ahead of time what papers you’ll need to apply for that loan. Most lenders require, at the minimum, bank statements, tax returns, W-2 statements and recent pay stubs to prove your income and assets, however, your lender will know the specific paperwork they’ll need based on your financial situation. 

5. Lock down that rate!

While variable interest loans may have their advantages for some buyers, with interest rates as low as they are right now, it makes sense to ask your lender if they can lock it in for the lifetime of the loan. You will only have a short period of time to do this, and the nature of mortgage rates is to fluctuate from day to day. Bankrate.com’s advice is to not overthink it. “Pick a rate that you can be happy with, and when it hits, lock the rate. The key is to be happy with the rate you were able to get and not look back.”

Use your real estate agent. After closing on hundreds of homes, I know the tricks as well as the hazards of applying for and obtaining a mortgage. Your loan officer and your real estate agent are both part of your team in making these decisions and ultimately, buying your Boston Seaport District condo at a price you can afford in the long term!

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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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