The Boston2.com Real Estate Blog

Buying a Home in Massachusetts Can Be Scary… Until you know the facts!

Hi, I am Jeff Chubb and I wanted to share with you some truth’s when it comes to buying a Massachusetts home. There are many myths out there that are keeping our friends and family from buying a home…

“I need 20% down in order to buy a home” – This is the most common myth we hear. Potential Massachusetts home buyers are constantly being told they need 20% down in order to buy a home. This just simply is not the case. 71% of buyers who purchased homes put down 20% OR LESS. And today you can buy a home for as little as 3.5% down. If you are a Veteran then can even qualify for VA programs with 0% down. Consider this, the average down payment is 6%. AND down payments can even be gifted. (Thanks Mom and Dad!).

“I need an 800 Credit Score” This is the 2^nd biggest myth when buying a home in Massachusetts. In September, the average credit score for approved loans was 737. But there are FHA programs that will give a borrower a mortgage with a credit score of 580 or higher. Financing is complex which is why it always makes sense to speak with a mortgage banker. 

“Getting approved for a mortgage is hard when buying Real Estate in Massachusetts” – Last month 78.1% of loan applications were approved. I think it is important to remember that a bank isn’t trying to turn someone down, but they are cutting some pretty large checks and need to verify everything is in order. This can be a frustrating part of the process, but the good news is… They don’t ask for a blood sample AND you the light at the end of the tunnel results in a set of keys and owning a piece of the American Dream.

“Interest Rates are high” – Historically speaking...

Bye Bye FICO Scores? And What It Means to You.

I am Jeff Chubb and I wanted to share with you the news that the Federal Housing Finance Agency is now allowing Fannie Mae & Freddie Mac to use an alternative credit scoring model, Vantage Score. And what this means for you and your friends and family when buying a home.

The FICO scoring model was introduced in 1989 and is used by 90% of lenders.

Compared to VantageScore which was introduced in 2006. It’s developers say this model is a more predictive scoring model that is easier to understand and apply.

Many banks are using a combination of FICOs and VantageScore models for mortgages, however until now this was not the case for mortgages secured by a government entity. How much does this matter? In 2017, government backed mortgages accounted for nearly 70% of all mortgages originated in the U.S.

Are we surprised that our Government Backed Mortgage agencies were late to the party?

So what are the differences, how does Vantage Score Group Credit Information?

-        Payment history
-        Age & type of credit
-        Percentage of credit limit used
-        Total balances and debt
-        Recent credit behavior and inquiries
-        Available Credit

Compared to the 5 categories that FICO uses:

-        Payment history
-        Amounts owed
-        Length of credit history
-        New Credit
-        Credit...

Closing Cost Credits and How to save $Thousands at the closing table when buying a ? home

I wanted to share with you what a closing cost credit is and how you can use them to help save you a LOT of money ? at the closing table.

- What is a Closing Cost Credit
- When Should you talk to your agent about closing costs?
- How to confirm amount of closing cost credits
- What happens if you ask for a larger credit then you use?
- Why a Seller May Say no

If you would like to learn more about the current market conditions whether buying or selling a home throughout Massachusetts, email ? at [email protected], or give us a call ☎️ at 617-480-2600 or visit us online.

We look forward to being your real estate resource.