From Mass Housing
Applying for a mortgage
Once you've made a successful offer, it's time to address the financing. There are numerous options for financing the purchase of your new home. So how do you decide which is the best for you? Knowledge is power, and with the right information in hand, you'll be sure to make a good decision.

Here are a few resources to help you through the mortgage application process:

• Mortgage Application Checklist — Necessary steps and documentation required to obtain a mortgage
• Mortgage Application Process Flowchart — Follow the path your application will take.

What are the terms of a Mortgage Loan?

When shopping for a mortgage loan these are some terms ,or factors, to compare among lenders:

  • The interest rate offered by the lender
  • Whether the rate is fixed or adjustable
  • Whether the rate can be locked in when you apply for the mortgage. For how long? At what cost?
  • The closing costs
  • Other fees charged by the lender. Find out how those fees compare with the fees of other lenders.
To obtain a MassHousing loan, you must go through a participating lender. Lenders approved to make MassHousing loans vary depending upon the program in which you are interested. Lenders are listed by program on the MassHousing website. You may also obtain a list of lenders by calling MassHousing's consumer line at 888.843.6432.

Obtaining a Mortgage

The Mortgage application process is filled with uncertainty by the first-time home buyer. Questions such as "What do lenders focus on when I submit my application?" and "What is the right type of mortgage for me?" often add confusion and intimidation to this step of the process. But your questions and concerns are by no means rare. In fact, many of the questions you're asking may have already been answered.

• Questions and Answers for the First-time Home Buyer

Shopping for a Loan

A major part of the home buying process is shopping for a loan. Even if you have been pre-qualified by a lender, you are not required to select one of their mortgage products. An educated home buyer will compare the terms of the different loan options that various lenders offer, and will then make an educated decision on which program is best for them.

Pre-Qualification vs. Pre-Approval

During your search for a home, you will undoubtedly hear the terms pre-qualified and pre-approved for a mortgage loan. The term pre-qualified means that a lender has determined that, based on the information you have provided, you would qualify for a mortgage loan...

Pre-qualified, however, does not guarantee you a loan, nor does it guarantee the rate at which the lender will lend you the money. Pre-approved, on the other hand, guarantees (typically for a period of 30 to 45 days) a mortgage loan at a specified rate. Pre-qualification does give the property seller confidence that the prospective buyer will be able to obtain a mortgage. This confidence can greatly affect the seller's decision to accept an Offer to Purchase Real Estate. As a smart consumer, you should shop wisely for the mortgage loan that offers you the best terms available for your particular circumstances.

• Get Pre-Qualified by MassHousing

Resources

One place to begin shopping is in a local newspaper, such as the Boston Sunday Globe Real Estate Section. Every Sunday, the Globe lists 50 to 55 lenders across the state along with their mortgage interest rates. Because the list is revolving, every lender in Massachusetts shows up about once a month. Although you may have a lender in mind, or you may even be pre-qualified (remember, you are not obligated to borrow from a lender who has pre-qualified you), competitive shopping can save you a lot of money over the life of the mortgage.

Other information sources are:

  • Mortgage companies
  • Savings and loan institutions
  • Federal credit unions
  • Other financial institutions
Another good resource is your real estate agent. They usually know area lenders and what programs they are offering.

Finding the best rate and terms may require numerous phone calls and a significant amount of time, but the effort will be well worth it in the end.