First Time Home Buyer Checklist - Boston

✓ Check Your Credit Score

Target: 680+ (720+ for best rates)

• Get free reports at annualcreditreport.com
• Fix errors immediately (can take 60-90 days)
• Pay down credit cards to under 30% utilization
• Don't open new credit accounts

✓ Save for Down Payment + Closing Costs

Minimum needed: $30,000-45,000 for a $600K home

• Down payment: 3-5% ($18K-30K for $600K home)
• Closing costs: 2-3% ($12K-18K)
• Emergency reserve: $10K-15K (lenders want to see reserves)

✓ Research First-Time Buyer Programs

Massachusetts has EXCELLENT programs:

• MassHousing: 3% down, competitive rates, no income limits in many towns
• ONE Mortgage: 3% down, NO PMI (saves $200-400/month)
• City of Boston First-Time Buyer: Income-restricted, but great for qualifying buyers
• MassSave: Down payment assistance grants (up to $15K)

✓ Get Pre-Approved (Not Just Pre-Qualified)

Pre-approval is MANDATORY in Boston's competitive market

• Gather: 2 years tax returns, 2 months bank statements, paystubs, W2s
• Shop 3-5 lenders to compare rates
• Get pre-approval letter stating exact amount
• Ask lender about first-time buyer programs

✓ Determine Your REAL Budget

Lenders will approve you for more than you should spend

• Use 28% rule: Monthly housing ≤ 28% of gross income
• $100K income → ~$2,300/month max housing payment
• Remember: Property taxes in MA are HIGH ($500-1,000/month)
• Add: Condo fees ($300-800/month), utilities ($200-300/month)

✓ Choose Your Neighborhoods

Focus on 2-3 neighborhoods that fit your budget AND lifestyle

• Commute time to work (test during rush hour)
• School quality (if you have/want kids)
• Walkability & access to T
• Nightlife, restaurants, community feel

✓ Find a Buyer's Agent (Free to You!)

Seller pays agent fees, so use one!

• Interview 2-3 agents who specialize in your neighborhoods
• Ask: "How many first-time buyers have you worked with?"
• Good agents will educate you, not just show houses

✓ Set Up Property Analysis System

Don't rely on memory—use tools to compare properties

• Use FindMyHome.Online to track properties and match scores
• Create spreadsheet with: address, price, pros, cons, commute
• Take photos/videos at open houses
• Research comparable sales in the neighborhood

✓ Do Your Due Diligence BEFORE Offering

In Boston's competitive market, you need info fast:

• Check property history on Zillow/Redfin (price changes, DOM)
• Review condo docs (if condo): budget, reserves, special assessments
• Drive by at night and on weekends (noise, parking, activity)
• Check flood zones and school ratings

✓ Write a Competitive Offer

Boston often sees bidding wars. Your agent will advise, but generally:

• Offer at or above asking if it's priced fairly
• Include escalation clause (up to $X over highest offer)
• Keep contingencies (inspection, financing) but short timelines
• Write personal letter to seller (surprisingly effective)
• Offer flexibility on closing date

✓ Get Home Inspection

Non-negotiable. Costs $400-700, could save you $50,000

• Attend the inspection in person
• Ask inspector to explain EVERYTHING
• Get quotes for any major repairs found
• Decide: renegotiate, ask for credit, or walk away?

✓ Finalize Mortgage

Lock your rate and provide final documents

• Don't change jobs or make major purchases
• Respond to lender requests immediately
• Get final loan estimate and compare to initial quote

✓ Get Home Insurance

Required by lender. Shop 3+ companies

• Costs vary WILDLY in Boston: $800-2,500/year
• Check if you need flood insurance (extra $1,000-3,000/year)
• Bundle with auto insurance for discount

✓ Final Walk-Through

24-48 hours before closing

• Verify all repairs were completed
• Test all appliances, faucets, lights
• Check nothing was removed that should stay
• Bring your agent—they'll know what to check

✓ Review Closing Disclosure

Receive 3 days before closing. READ IT CAREFULLY

• Compare to Loan Estimate—numbers should match
• Question any unexpected fees
• Verify your name/address is spelled correctly

✓ Bring to Closing

• Photo ID
• Cashier's check or proof of wire transfer
• Proof of homeowner's insurance
• Your agent (for support and to review docs)