Getting Ready

Before You Begin

These essential tasks can be done in any order before you start actively shopping. Being prepared puts you ahead of the competition.

Find a Lender

Secure mortgage pre-approval to know your budget and strengthen your offers

Learn more

Find a Real Estate Agent

Partner with an experienced buyer's agent who knows the Massachusetts market

Learn more

Find a Home Inspector

Research and select a qualified inspector before you need one

Learn more

Find a Closing Attorney

Engage an attorney early—they can review your offer at no extra cost

Learn more
1
Prep Step 1

Find a Lender and Get Pre-Approved

Secure your mortgage pre-approval before you start house hunting

Before you start browsing listings and attending open houses, getting pre-approved for a mortgage should be your first step. A pre-approval letter shows sellers you're a serious, qualified buyer and gives you a clear picture of your budget.

Pre-Approval vs. Pre-Qualification

Pre-qualification is an informal estimate based on self-reported information. Pre-approval involves a thorough review of your finances and credit, resulting in a conditional commitment from a lender. Always aim for full pre-approval.

Why Pre-Approval Matters in Massachusetts

Stronger Offers

Sellers take pre-approved buyers more seriously. In competitive Massachusetts markets, this can make the difference.

Faster Closing

Much of the paperwork is already done, potentially shaving weeks off your closing timeline.

Know Your Budget

Understand exactly what you can afford before falling in love with a home outside your price range.

Documents to Have Ready

While not all documents are required upfront, having these ready can speed up the process. Your lender will let you know exactly what they need based on your situation.

Income Verification

  • •Last 2 years of W-2 forms
  • •Last 2 years of federal tax returns
  • •Recent pay stubs (last 30 days)
  • •If self-employed: profit/loss statements, 1099s, business tax returns

Asset Documentation

  • •Last 2-3 months of bank statements (all pages)
  • •Investment account statements
  • •Retirement account statements (401k, IRA)
  • •Gift letters if receiving down payment assistance

Identification & Credit

  • •Valid government-issued photo ID
  • •Social Security number
  • •Current address and 2-year address history
  • •Authorization to pull credit report

Employment Information

  • •Employer name, address, and phone number
  • •Employment history for the past 2 years
  • •HR contact information for verification
  • •Offer letter if starting a new job

How Long Does Pre-Approval Take?

Most lenders can provide a pre-approval letter within 1-3 business days if you have all your documents ready. The letter is typically valid for 60-90 days. If it expires before you find a home, you'll need to update your documentation and get re-approved.

Choosing a Lender

Shop around and get pre-approved by multiple lenders to compare rates and terms. This won't significantly impact your credit score if done within a 14-45 day window, as multiple mortgage inquiries are typically counted as a single inquiry.

Lender Options to Consider

  • 1.Local Banks & Credit Unions: Often offer competitive rates and personalized service, with knowledge of Massachusetts-specific programs.
  • 2.Mortgage Brokers: Can shop multiple lenders on your behalf, potentially finding better rates.
  • 3.Online Lenders: May offer lower rates due to reduced overhead, but less personal guidance.
  • 4.Your Real Estate Agent's Recommendations: Agents often work with reliable lenders who close on time.

Don't Make Major Financial Changes

Once pre-approved, avoid making large purchases, opening new credit accounts, changing jobs, or moving money between accounts without consulting your lender. These actions can jeopardize your final mortgage approval.
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Prep Step 2

Find a Real Estate Agent

Partner with an experienced buyer's agent who knows the Massachusetts market

A good buyer's agent is your advocate throughout the home buying process. They'll help you find properties, schedule showings, negotiate offers, and guide you through every step from initial search to closing day.

Buyer's Agent Cost

As a buyer, you typically don't pay your agent's commission directly—it's paid by the seller as part of the transaction. This means you get expert representation at no direct cost to you. However, recent changes in real estate commissions mean it's worth discussing this upfront with any agent you interview.

What to Look For

Local Expertise

Deep knowledge of Massachusetts neighborhoods, school districts, and market conditions.

Strong Communication

Responds quickly, keeps you informed, and explains the process clearly.

Proven Track Record

Experience with first-time buyers and a history of successful closings.

Questions to Ask Potential Agents

  • 1.How long have you been working as a buyer's agent in this area?
  • 2.How many first-time home buyers have you worked with?
  • 3.What's your availability for showings, including evenings and weekends?
  • 4.How will you help me compete in a multiple-offer situation?
  • 5.Can you recommend lenders, inspectors, and attorneys?
  • 6.What's the typical timeline from first showing to closing?
  • 7.How do you handle negotiations after inspection?
  • 8.What happens if we don't find a home within a certain timeframe?

Where to Find Agents

  • •Personal Referrals: Ask friends, family, or coworkers who recently bought a home in Massachusetts.
  • •Open Houses: Attend open houses to meet agents in action and see how they interact.
  • •Online Reviews: Check Zillow, Realtor.com, and Google reviews for agent ratings.
  • •Your Lender: Mortgage lenders often work with reliable agents they can recommend.

Interview Multiple Agents

Don't commit to the first agent you meet. Interview at least 2-3 agents to compare their experience, communication style, and approach. You'll be working closely with this person for weeks or months—make sure it's a good fit.

Buyer Representation Agreement

Some agents will ask you to sign a buyer representation agreement. This is becoming more common and may be required. Read it carefully, understand the terms (including duration and exclusivity), and don't hesitate to negotiate terms you're uncomfortable with.
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Prep Step 3

Find a Home Inspector

Research and select a qualified inspector before you need one

Once your offer is accepted, you'll typically have only 7-10 days to complete a home inspection. Having an inspector already selected means you can schedule immediately and avoid losing valuable time in a competitive market.

Why Find One Early?

In a hot market, good inspectors book up quickly. By researching and vetting inspectors before your offer is accepted, you can schedule an inspection within days of acceptance rather than scrambling to find availability.

What to Look For

Licensed & Insured

Massachusetts requires home inspectors to be licensed. Verify their credentials and insurance.

Thorough Reports

Provides detailed written reports with photos within 24-48 hours of inspection.

Available on Short Notice

Can schedule quickly—you'll have a tight window after your offer is accepted.

Questions to Ask Potential Inspectors

  • 1.Are you licensed by the Massachusetts Board of Registration of Home Inspectors?
  • 2.How long have you been inspecting homes?
  • 3.How many inspections do you perform per year?
  • 4.What does your inspection include? What's excluded?
  • 5.Can I attend the inspection?
  • 6.When will I receive the written report?
  • 7.Do you carry errors and omissions insurance?
  • 8.What's your fee, and what factors affect the cost?
  • 9.Do you offer specialty inspections (radon, pest, etc.)?

Typical Inspection Costs

Inspection TypeTypical CostNotes
Standard Home Inspection$400 - $600Varies by home size
Radon Testing$100 - $200Highly recommended in MA
Pest/Termite Inspection$75 - $150Often required by lenders
Mold Air Sampling$150 - $300If you see or smell water damage

Where to Find Inspectors

  • •Your Real Estate Agent: Agents work with inspectors regularly and know who's thorough and responsive.
  • •ASHI or InterNACHI: Professional associations with searchable inspector directories.
  • •Massachusetts Board of Registration: Verify any inspector's active license status.
  • •Personal Referrals: Ask friends or family who recently purchased for recommendations.

Attend the Inspection

Plan to attend your home inspection (typically 2-4 hours). Walking through with the inspector helps you understand the home's systems, ask questions in real-time, and learn about maintenance needs. It's one of the best educational opportunities in the buying process.

Independence Matters

Choose an inspector independently. While your agent's recommendations are helpful, some buyers prefer to find their own inspector to ensure complete independence. The inspector works for you—not the agent or seller.
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Prep Step 4

Find a Closing Attorney

Engage an attorney early—they can review your offer at no extra cost

Massachusetts is one of the few states where attorneys are required at real estate closings. Your closing attorney protects your interests, reviews the Purchase and Sale Agreement, performs the title search, and conducts the closing.

Why Find One Before Making an Offer?

Most real estate attorneys will review your Offer to Purchase at no additional cost as part of their services. Having an attorney in place before you make an offer sets you apart from other buyers and ensures your legally binding offer is reviewed by a professional before you sign.

What Your Attorney Does

Before Closing

  • •Reviews and negotiates the Purchase & Sale Agreement
  • •Performs comprehensive title search
  • •Orders and explains title insurance
  • •Coordinates with lender on closing documents
  • •Reviews condo documents if applicable

At Closing

  • •Conducts the closing ceremony
  • •Explains all documents you're signing
  • •Handles fund disbursement
  • •Records the deed at Registry of Deeds
  • •Provides final title insurance policy

Questions to Ask Potential Attorneys

  • 1.How many residential closings do you handle per month?
  • 2.What is your fee structure? (Flat fee vs. hourly)
  • 3.Will you personally handle my closing or will it be a paralegal?
  • 4.How do you handle communication—email, phone, portal?
  • 5.What's your availability for the proposed closing date?
  • 6.Do you have experience with my type of property (condo, multi-family, etc.)?
  • 7.What does your fee include? Title search? Title insurance?
  • 8.How quickly do you typically turn around P&S reviews?

Understanding Attorney Fees

Attorney fees in Massachusetts typically range from $800 to $1,500 for a straightforward purchase. Here's what you might expect to pay:

ServiceTypical Range
Attorney's Fee (Closing)$800 - $1,500
P&S Review/DraftingOften included
Title Search$200 - $400
Title Insurance (Owner's)$1,000 - $3,000
Title Insurance (Lender's)Required by lender
Recording Fees$200 - $500

Where to Find Attorneys

  • • Ask your real estate agent for recommendations
  • • Get referrals from friends who recently purchased
  • • Massachusetts Bar Association Lawyer Referral Service
  • • Online reviews (Google, Avvo, Yelp)

Your agent likely works with several attorneys regularly and can suggest ones who are responsive and experienced with your type of transaction.

Choose Your Own Attorney

While the seller's attorney can technically represent both parties in Massachusetts (called "dual representation"), this is not recommended. Your attorney should represent only your interests. The fee difference is minimal, and the peace of mind is worth it.
The Process

The Home Buying Timeline

Once you're prepared and find a home you love, follow these 12 steps from making an offer to receiving the keys.

1

Making an Offer

Understanding the offer contract and its significance

2

Offer Acceptance

What happens after your offer is accepted

3

Earnest Money Deposit

How and where to make your escrow payment

4

Home Inspection

What to look for and how to interpret results

5

Purchase & Sale Agreement

Understanding the P&S and negotiating terms

6

P&S Deposit

Making your larger escrow deposit at P&S signing

7

Mortgage Application

Finalizing your loan with full documentation

8

Mortgage Appraisal

Lender-required property value assessment

9

Clear to Close

Final mortgage approval from your lender

10

Closing Disclosure

Review your final loan terms and closing costs

11

Final Steps

Final walkthrough and preparing for closing

12

Closing Day

What to expect and bring to closing

1
Step 1

Making an Offer

Understanding every paragraph of the Massachusetts offer contract

In Massachusetts, the home buying process typically starts with a written offer, often using the Greater Boston Real Estate Board's standard form or a similar template.

The Offer is Legally Binding

Unlike many states where only the Purchase and Sale Agreement is binding, in Massachusetts the Offer to Purchase is a legally binding contract once signed by both parties. Take this document seriously and have your attorney review it before signing.

Massachusetts is an Attorney State

Massachusetts requires that both buyers and sellers have attorneys review and modify the Purchase and Sale Agreement. Your attorney will be your advocate throughout this process.

Understanding Each Contract Paragraph

Click on each section below to understand what it means and why it matters to you as a buyer.

Legend:CriticalImportantStandard

Have your attorney review the offer

This is where knowing the attorney you will be working with sets you apart. Ask if they will review your offer often times for no extra cost.
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Step 2

After Your Offer is Accepted

The critical first two weeks and your path to closing

Congratulations! Your offer was accepted. But the work is just beginning. In Massachusetts, you typically have 7-14 days to sign the Purchase and Sale Agreement, and the period between acceptance and closing is packed with deadlines.

Start Multiple Tasks in Parallel

Don't wait to finish one task before starting another. While your inspection is being scheduled, you should also be contacting attorneys, pushing your lender for pre-approval documentation, and reviewing the P&S draft.

Your First 45 Days Timeline

Day 0

Offer Accepted

  • •Receive signed acceptance from seller
  • •Notify your lender immediately
  • •Schedule home inspection (within 7-10 days)
Days 1-2

Earnest Money Due

  • •Deliver initial deposit to escrow
  • •Get receipt for your records
  • •Confirm deposit amount matches contract
Days 3-10

Inspection Period

  • •Complete general home inspection
  • •Schedule specialty inspections if needed
  • •Review reports and negotiate repairs
Days 7-14

P&S Signing

  • •Attorney reviews Purchase and Sale Agreement
  • •Sign P&S and deliver to seller
  • •Submit larger deposit (typically 5% total)
Days 14-45

Mortgage Process

  • •Complete loan application
  • •Provide all requested documentation
  • •Appraisal ordered by lender
  • •Receive mortgage commitment

Your Team Moving Forward

Real Estate Agent

Coordinates showings, negotiations, and communication between parties. They'll help manage the inspection negotiation process.

Closing Attorney

Reviews/modifies P&S, performs title search, handles closing. Find one early—they're essential in Massachusetts.

Mortgage Lender

Processes your loan, orders appraisal, issues commitment letter. Respond to their requests immediately to avoid delays.

Home Inspector

Evaluates the property's condition. You'll want to be present for the inspection to ask questions and learn about your new home.

Don't Make Big Financial Changes

From offer acceptance until closing, avoid: large purchases, new credit applications, changing jobs, moving money between accounts, or co-signing loans. Lenders re-verify your finances before closing, and changes can jeopardize your mortgage.

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Step 3

Earnest Money Deposit

How and where to make your escrow payment in Massachusetts

The earnest money deposit (EMD), also called the escrow deposit, shows the seller you're serious about purchasing their home. In Massachusetts, there are typically two deposits: one with the offer and a larger one with the P&S.

1

Initial Deposit

  • •Typically $1,000
  • •Due within 24-48 hours of offer acceptance
  • •Held by the listing broker in escrow
2

P&S Deposit

  • •Usually 5% of purchase price total
  • •Due at P&S signing (7-14 days after acceptance)
  • •Held by the listing broker in escrow

Where to Send Your Deposit

The deposit is typically made to:

  1. 1The listing broker's escrow account – Most common
  2. 2Your closing attorney's IOLTA account – Less common
  3. 3The seller's attorney's escrow account – Less common

Payment Methods

Bank Check
Most commonly accepted
Certified Check
Guaranteed funds
Wire Transfer
For larger amounts

Wire Fraud Alert

Wire fraud is increasingly common in real estate. Scammers hack email accounts and send fake wiring instructions. Always verify wire instructions by phone using a number you know is legitimate—never use the number in the email.

Your bank may require 24-48 hours notice for large wire transfers, so plan ahead.

What Happens to Your Deposit?

Your earnest money is held in escrow (not given to the seller) until closing. At closing, it's applied to your down payment and closing costs. If the deal falls through due to a valid contingency, you get it back. If you breach the contract, the seller may keep it.
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Step 4

Home Inspection

What to look for and how to interpret the results

The home inspection is your opportunity to understand exactly what you're buying. A typical inspection takes 2-4 hours and costs $400-700depending on the home's size. You should absolutely attend—this is when you learn how your future home works.

Be Present for the Inspection

Walk through with the inspector. Ask questions about maintenance, expected repairs, and how systems work. A good inspector is also a teacher. Take photos and notes—the report will have details, but your observations matter too.

Key Areas to Examine

Structural & Foundation

  • •Cracks in foundation walls (horizontal cracks are serious)
  • •Signs of water intrusion or staining
  • •Proper drainage away from foundation
  • •Floor levelness and signs of settling

Plumbing

  • •Water pressure and flow at all fixtures
  • •Signs of leaks under sinks and around toilets
  • •Water heater age and condition (15+ years is old)
  • •Pipe material (lead, polybutylene are concerns)

Electrical

  • •Panel capacity and condition (100+ amps preferred)
  • •Grounded outlets, especially in bathrooms/kitchens
  • •Knob-and-tube or aluminum wiring (insurance issues)
  • •GFCI protection in wet areas

HVAC System

  • •Age and condition of furnace/AC (15-20 year lifespan)
  • •Even heating/cooling throughout home
  • •Ductwork condition and insulation
  • •Recent maintenance records

Specialty Inspections to Consider

The general inspection doesn't cover everything. Based on the home's age, location, and features, you may need additional inspections:

InspectionCostWhy It Matters
Radon TestingRecommended
$100-200Massachusetts has significant radon risk. Levels above 4 pCi/L require mitigation.
Mold Air Sampling
$150-300Important if you see water stains, musty smells, or visible mold. Tests air quality and identifies hidden mold.
Well Water Test
$100-400Test for bacteria, nitrates, arsenic, and other contaminants if on private well.
Pest/Termite InspectionRecommended
$75-150Check for wood-destroying insects and rodent activity.
Chimney Inspection
$150-300Essential if you plan to use the fireplace. Looks for creosote buildup and structural issues.

Red Flags That May Warrant Walking Away

  • • Major structural issues (failing foundation, severe settling)
  • • Extensive water damage or active mold problems
  • • Unpermitted major work (additions, electrical, plumbing)
  • • Environmental hazards (asbestos, significant lead, high radon)
  • • Failing septic system (can cost $20,000+ to replace)

After the Inspection

Once you have the inspection report, you typically have three options:

Accept As-Is
Proceed with purchase, understanding the issues
Request Repairs/Credit
Ask seller to fix issues or reduce price
Walk Away
Exercise your contingency and get deposit back

What's Reasonable to Request?

Focus on safety issues, major systems, and things the seller represented as working. Minor cosmetic issues and normal wear are typically not negotiated. Sellers often prefer giving credits over making repairs—this gives you control over the work quality.
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Step 5

Purchase & Sale Agreement

The legally binding contract that governs your purchase

The Purchase and Sale Agreement (P&S) is the comprehensive contract between you and the seller. While the offer is also legally binding in Massachusetts, the P&S contains the detailed terms and conditions. With more money at stake (typically 5% of the purchase price), attorney review is essential.

The P&S vs. The Offer

Both are legally binding in Massachusetts, but the P&S contains the detailed terms.

Offer to Purchase

  • • Legally binding once signed
  • • Basic terms and price
  • • Smaller deposit at risk

P&S Agreement

  • • Detailed legal contract
  • • Comprehensive terms and conditions
  • • Full deposit at risk (typically 5%)

Key Provisions to Understand

Mortgage Contingency Deadline

Critical

The date by which you must secure mortgage commitment. Typically 21-30 days from P&S signing. If you can't get approved, you can back out with your deposit.

Deposit Amount

Critical

Total earnest money, usually 5% of purchase price. The P&S deposit (minus your initial deposit) is due at signing.

Smoke & Carbon Monoxide Compliance

Seller must provide certificate of compliance from fire department at or before closing. Non-negotiable in Massachusetts.

Property Condition

Defines the condition the property must be in at closing. Usually 'broom clean' and same condition as inspection, normal wear excepted.

Extension Provisions

Critical

What happens if closing is delayed? How much does it cost to extend? Who pays for extensions?

Default and Remedies

Critical

What happens if either party breaches? Typically, buyer loses deposit; seller must return deposit and may owe damages.

Personal Property

List of items staying with the house (appliances, fixtures, window treatments). Be specific to avoid disputes.

What Your Attorney Should Negotiate

  • • Adequate time for mortgage contingency (don't let the seller rush you)
  • • Clear language on what's included vs. excluded from sale
  • • Protection if seller doesn't vacate on time (per diem penalties)
  • • Right to conduct final walkthrough within 24 hours of closing
  • • Clear remedies if issues arise between P&S and closing

Typical Timeline

Offer AcceptedDay 0
P&S DraftingDays 1-7
Attorney ReviewDays 7-10
P&S SigningDays 10-14
Mortgage Application FinalizedDays 14-21
Mortgage Commitment DueDays 28-35
ClosingDays 45-60

The Mortgage Contingency Deadline is Critical

If your mortgage isn't approved by the contingency deadline and you don't have an extension, you may be legally required to close anyway—or forfeit your deposit.

Protect yourself: Get pre-approved before making offers. Respond to lender requests immediately. If you're approaching the deadline and aren't approved, have your attorney request an extension in writing before the deadline passes.

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Step 6

P&S Deposit

Making your larger escrow deposit at P&S signing

At the Purchase & Sale signing, you'll make your larger escrow deposit—typically bringing the total to 5% of the purchase price. This deposit demonstrates your commitment and is at risk if you back out without a valid contingency.

Calculating Your P&S Deposit

Total Required
5% of price
Minus Initial Deposit
$1,000 - $5,000
= P&S Deposit
Remaining Balance

Example: For a $500,000 home, 5% is $25,000. If you put $2,000 down with your offer, you'll owe $23,000 at P&S signing.

Where to Send the P&S Deposit

The P&S deposit is typically sent to:

  • •The listing broker's escrow account – Most common
  • •Your closing attorney's IOLTA account – Less common
  • •The seller's attorney's escrow account – Less common

Payment Methods

Bank Check
Most commonly accepted
Certified Check
Guaranteed funds
Wire Transfer
For larger amounts

Wire Fraud Alert

Wire fraud is increasingly common in real estate. Scammers hack email accounts and send fake wiring instructions. Always verify wire instructions by phone using a number you know is legitimate—never use the number in the email.

Your bank may require 24-48 hours notice for large wire transfers, so plan ahead.

This Deposit Is at Risk

Unlike the initial deposit which may be refundable during the inspection period, the P&S deposit is typically at risk after the P&S is signed. If you back out without a valid contingency (like mortgage denial), the seller may be entitled to keep your deposit as damages.

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Step 7

Mortgage Application

Submitting your full loan application after the P&S is signed

After signing the Purchase & Sale Agreement, you'll submit your complete mortgage application. While you were pre-approved earlier, the formal application requires full documentation and triggers the underwriting process. Stay organized and responsive—delays here can jeopardize your closing date.

The Application Process

1
Submit Full Application
Provide all required documents to your lender within 3 days of signing the P&S
2
Loan Processing
Processor reviews documents, orders appraisal, and verifies information
3
Underwriting Review
Underwriter evaluates risk and may request additional documentation
4
Conditional Approval
Loan approved subject to final conditions being satisfied
5
Appraisal
Licensed appraiser confirms property value supports the loan amount

Documents You'll Need

Income Verification

  • Last 2 years of W-2s
  • Last 2 years of tax returns (all pages)
  • Most recent 30 days of pay stubs
  • If self-employed: profit & loss statements, business tax returns

Asset Documentation

  • Last 2 months of bank statements (all pages)
  • Retirement account statements
  • Investment account statements
  • Gift letter if receiving gift funds

Property & Purchase

  • Signed Purchase & Sale Agreement
  • Earnest money deposit receipt
  • Homeowner's insurance quote
  • Condo documents (if applicable)

Personal Information

  • Government-issued ID
  • Social Security card or proof of SSN
  • Divorce decree (if applicable)
  • Bankruptcy discharge papers (if applicable)

Common Underwriting Conditions

Even with a strong application, underwriters often request additional items. Be prepared for:

  • •Explanation letter for large deposits or withdrawals
  • •Updated pay stubs closer to closing
  • •Verification of employment (VOE)
  • •Proof of homeowner's insurance
  • •Title commitment from attorney
  • •Condo questionnaire or HOA certification
  • •Additional bank statements if funds moved

Typical Timeline

The mortgage application to clear-to-close process typically takes 2-4 weeks. The appraisal alone can take 1-2 weeks to schedule and complete. Build in buffer time and submit documents promptly when requested.

Protect Your Approval

During underwriting, your financial profile is under a microscope. Avoid these common mistakes:

  • • Don't make large purchases (cars, furniture, appliances)
  • • Don't open new credit cards or loans
  • • Don't change jobs without consulting your lender
  • • Don't make large cash deposits without documentation
  • • Don't co-sign for anyone else's loan

Stay Responsive

Respond to lender requests within 24 hours if possible. Delayed responses are the #1 cause of closing delays. Keep your phone on, check email frequently, and have your documents organized and accessible.

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Step 8

Mortgage Appraisal

The lender's independent assessment of the property's value

The mortgage appraisal is required by your lender to confirm the home is worth at least what you're paying. The lender won't loan more than the appraised value—this protects them (and you) from overpaying. Your buyer's agent will coordinate scheduling with the seller or seller's agent.

What to Expect

Lender Orders It

Your lender orders the appraisal from a licensed appraiser—you don't choose who does it

You Pay for It

Typically $400-$600, usually rolled into closing costs

Agent Coordinates Access

Your buyer's agent works with the seller/seller's agent to schedule the appointment

The Appraisal Process

  • Appraiser inspects the property interior and exterior
  • Takes photos and measurements of the home
  • Reviews comparable recent sales in the area
  • Evaluates neighborhood and market conditions
  • Prepares a formal report with the appraised value
  • Report is sent to your lender (and shared with you)

Possible Outcomes

Appraised at or Above Purchase Price

Best case scenario—you proceed as planned with no changes needed

Appraised Below Purchase Price

You may need to renegotiate, bring more cash, or walk away

If the Appraisal Comes in Low

A low appraisal doesn't have to kill the deal. You have options:

  • • Negotiate with the seller to lower the price to appraised value
  • • Pay the difference in cash (lender only loans against appraised value)
  • • Challenge the appraisal if there are errors or missing comparables
  • • Walk away if you have an appraisal contingency
  • • Split the difference with the seller

Appraisal Contingency

If your offer included an appraisal contingency, you can walk away with your deposit if the appraisal comes in too low. Without this contingency, you may be obligated to proceed or lose your earnest money.

Typical Timeline

The appraisal typically takes 1-2 weeks from when your lender orders it. The actual property visit takes 30-60 minutes, but the appraiser needs time to research comparable sales and prepare the report. Your lender will share the results with you.

9
Step 9

Clear to Close

The green light from your lender that your mortgage is fully approved

"Clear to Close" is the final mortgage approval from your lender. It means all conditions have been satisfied, your loan is fully approved, and the lender is ready to fund. This is a major milestone—you're almost at the finish line.

What "Clear to Close" Means

Final Approval

Your mortgage application has passed all underwriting requirements and conditions

Documents Verified

All your financial documents, employment, and credit have been fully verified

Funds Ready

The lender is prepared to fund your loan at closing

Common Conditions Before Clear to Close

  • Final verification of employment (VOE) - lender calls your employer
  • Updated pay stubs if requested
  • Explanation letters for any credit inquiries
  • Proof of homeowner's insurance
  • Title insurance commitment
  • Final appraisal review
  • Any outstanding document requests

After You're Clear to Close

Closing Disclosure

You'll receive the Closing Disclosure (CD) at least 3 business days before closing

Final Numbers

Review your exact closing costs, monthly payment, and cash needed to close

Wire Instructions

You'll receive secure wire transfer instructions for your closing funds

Don't Jeopardize Your Closing

Even after receiving clear to close, your lender may do a final credit check before funding. Avoid:

  • • Making large purchases or opening new credit accounts
  • • Changing jobs or employment status
  • • Moving large sums of money between accounts
  • • Co-signing loans for others

Typical Timeline

After receiving clear to close, you'll typically close within 3-7 business days. The 3-day minimum is required by law to give you time to review the Closing Disclosure. Stay in close contact with your lender and be responsive to any last-minute requests.

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Step 10

Closing Disclosure

Your final loan terms delivered at least 3 days before closing

The Closing Disclosure (CD) is a 5-page document that details your final loan terms, monthly payment, and closing costs. Federal law requires you receive it at least 3 business days before closing, giving you time to review everything carefully.

The 3-Day Rule

You must receive your Closing Disclosure at least 3 business days before closing. This waiting period restarts if:

  • •Your APR increases by more than 0.125%
  • •A prepayment penalty is added
  • •Your loan product changes (e.g., fixed to adjustable)

Key Numbers to Review

Loan Amount
The total amount you're borrowing
Interest Rate
Your locked rate and whether it's fixed or adjustable
Monthly Payment
Principal, interest, taxes, insurance (PITI)
Cash to Close
Exact amount you need to bring to closing
Closing Costs
Itemized fees from lender, title, and third parties
Prepaid Items
Taxes, insurance, and interest paid in advance

Compare to Your Loan Estimate

Pull out the Loan Estimate (LE) you received when you applied. Compare these items:

Loan origination fees
Interest rate and APR
Monthly payment amount
Cash to close total
Third-party fees (appraisal, title, etc.)
Prepaid items and escrow amounts

Tolerance Limits

Some fees can't change at all (lender fees), some can increase up to 10% (third-party fees the lender selected), and some have no limit (fees you shopped for yourself). If charges exceed these limits, the lender must refund the difference at closing.

Red Flags to Watch For

  • !Interest rate different from your rate lock
  • !Unexpected fees not disclosed earlier
  • !Cash to close significantly higher than estimated
  • !Loan terms different from what you agreed to
  • !Missing credits or seller concessions
  • !Wrong property address or borrower information

Don't Ignore Discrepancies

If something doesn't look right, speak up immediately. Contact your lender and attorney before closing. Once you sign, it's much harder to correct errors. You have the right to delay closing if issues aren't resolved.

Wire Transfer Instructions

Your Closing Disclosure will include your cash to close amount. You'll receive separate wire instructions from your attorney. Always verify wire instructions by phone using a known number—never trust email alone. Wire fraud is a serious risk.

11
Step 11

Final Steps Before Closing

The final walkthrough and preparing for moving day

The final weeks before closing are busy. You'll complete your mortgage process, prepare for the move, and conduct a crucial final walkthrough of the property. Don't let the excitement make you rush—this is your last chance to catch issues.

The Final Walkthrough

Conducted within 24-48 hours of closing, the final walkthrough ensures the property is in the same condition as when you agreed to buy it. This is notanother inspection—it's a verification.

Walkthrough Checklist

If Something's Wrong at Walkthrough

Don't close if there are significant issues. Options include:

  • • Delay closing until issues are resolved
  • • Negotiate a credit or escrow holdback for repairs
  • • Get written agreement for seller to complete repairs after closing

Once you close, you own the problems. Your leverage disappears at closing.

Moving Preparation Timeline

12-4 Weeks Before

  • •Book movers or reserve moving truck
  • •Start packing non-essentials
  • •Notify current landlord (if renting)
  • •Begin address change notifications

21-2 Weeks Before

  • •Transfer or set up utilities (electric, gas, water, internet)
  • •Update address with USPS, banks, employers
  • •Confirm moving day logistics
  • •Pack most belongings

3Days Before Closing

  • •Confirm wire transfer details with attorney
  • •Prepare certified funds for closing
  • •Pack essentials bag for closing day
  • •Schedule final walkthrough

Utilities to Transfer or Set Up

Electricity
Natural Gas
Water/Sewer
Trash Collection
Internet/Cable
Home Security

Don't Forget These Details

  • • Get homeowner's insurance in place before closing (required by lender)
  • • Confirm closing location, time, and what to bring with your attorney
  • • Have your moving company's contact info and confirmation number handy
  • • Prepare a folder with all important documents (P&S, inspection report, etc.)
  • • Charge your phone—closing involves a lot of waiting and you may need to be reached
12
Step 12

Closing Day

What to expect when you officially become a homeowner

This is it—the day you've been working toward. Closing in Massachusetts typically takes 1-2 hours and involves signing many documents. Your closing attorney will guide you through each one. By the end, you'll have the keys to your new home.

What to Expect

1-2
Hours at closing
50+
Documents to sign
1
Set of keys at the end

What to Bring to Closing

1
Government-issued photo ID
Driver's license or passport for all buyers
2
Certified or cashier's check
For closing costs and down payment (confirm exact amount with attorney)
3
Proof of homeowner's insurance
Policy must be in effect as of closing date
4
Checkbook
For any small adjustments or last-minute fees
5
Social Security number
For tax and recording purposes

Wire Transfer Timing

If wiring your closing funds (common for amounts over $50,000), initiate the transfer at least 24-48 hours before closing. Verify wire instructions by phone using a known number—never trust instructions sent via email alone. Wire fraud is real and devastating.

Documents You'll Sign

DocumentWhat It Does
Promissory NoteYour promise to repay the mortgage loan according to its terms
Mortgage/Deed of TrustGives the lender a security interest in your home
Closing DisclosureFinal accounting of all costs, credits, and cash needed
DeedTransfers ownership from seller to you
Title Insurance PoliciesProtects you and lender against title defects
Settlement StatementDetailed breakdown of how funds are distributed
AffidavitsVarious sworn statements about identity, occupancy, etc.

It's Okay to Ask Questions

Your attorney is there to explain every document. If you don't understand something, ask before you sign. This is a significant legal transaction—there are no stupid questions. Take your time; the seller isn't going anywhere.

After You Sign

1.Receive keys, garage door openers, and any access codes
2.Get copies of all signed documents from your attorney
3.Record the deed at the Registry of Deeds (attorney handles this)
4.File homestead declaration for asset protection
5.Set up automatic mortgage payments
6.Schedule any immediate repairs or improvements
7.Change locks on all exterior doors
8.Introduce yourself to neighbors

Congratulations, Homeowner!

You did it. From making an offer to getting the keys, you've navigated one of the biggest purchases of your life. Welcome home.

Don't Forget the Homestead Declaration

Within 90 days of closing, file a Declaration of Homestead at the Registry of Deeds. This protects up to $500,000 of your home's equity from most creditors. The filing fee is minimal (around $35), and it's valuable protection. Your attorney can help with this or you can file it yourself.