Buying Your First Home in MA

Buying your first home can be a daunting task with many unanswered questions. We at Palmer Russell Company Realtors are here to help you realize the benefits of owning your own home. The following are a selection of topics that are common questions for of first-time home buyers.

• Why buy instead of rent? Owning a home is an investment and usually a good investment at that. Home values over time increase, whereas when renting, you simply throw your hard earned money down the drain. When you own your home you can deduct the cost of your mortgage loan interest from your federal income taxes and state taxes. You may also deduct the property taxes paid as a homeowner.
• Make your house your home. When you own your place of residence, you may customize it however you wish. You don't have to answer to a landlord and can proudly pour creativity and love into each room.
• Why use a real estate broker? If using a real estate broker didn't provide value to you, Palmer Russell Company Realtors wouldn't be in business. Real estate brokers assist you from start to finish and are a crucial part in determining the best value and negotiation.
• How much money is needed to buy a home? There are many factors that determine this - especially the cost of the home and the mortgage. You need enough money to cover three costs including earnest money (the deposit given to the seller when you make your offer that proves how serious you are), down payment (a percentage of the cost of the home that you must pay when you go to settlement) and closing costs (the costs associated with processing the paperwork to buy a house).
  
  "When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less. Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs." - (Source: http://www.hud.gov)

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