What Is Debt To Income Ratio When Applying for a Home Loan?

Most home buyers need a mortgage to buy a home.  Getting a mortgage can be quite a daunting task.  You will have a whole set of mortgage terms being thrown around.  One of which is debt to income ratio. 

So you may be left wondering what is debt to income ratio.

The acronym for debt to income ratio is DTI.  Lenders and real estate agents will throw that acronym around like everyone knows what it is but if you never have applied for a mortgage before you may not know what it is.

Your debt-to-income ratio is one qualifying factor in how much house you can afford and your ability to get approved for a home loan.  

what is debt to income ratio

What Is Debt To Income Ratio?

Your DTI or debt to income ratio is calculated by dividing your monthly debt payments by your total monthly income. Your ratio is used by lenders to evaluate your capability to make your monthly mortgage payment for the amount of money you are borrowing to purchase a home.

How Is Debt To Income Ratio Calculated?

Your debt-to-income ratio is calculated by adding up your monthly consumer debt and dividing it by your gross income (income before taxes).

When we talk about monthly expenses in the context of a mortgage we are talking about:

  1. Rent or Mortgage Payments/ Housing Expense
  2. Car Payments-  Includes leases as well.
  3. Student Loans
  4. Alimony or Child Support if it is court mandated
  5. Minimum Payment On All Credit Cards
  6. Minimum Payment on Lines of Credit 

Do not include groceries, utilities or other expenses when calculating your debt-to-income ratio. They are expenses and not debt.

Now you add up all of your monthly debt and divide the total by your income to get a percentage.  That percentage is the amount of consumer debt that consumes of your monthly income.

For example:

Consumer Debt/ Housing Expenses = $3300

Your Gross Income = $7800 dollars

3300 / 7800 = Total Debt to Income Ratio of 42%

Debt To Income Ratio Calculator

How Does Debt To Income Ratio Affect Your Mortgage?

Most loan programs allow a debt to income ratio of 38-43%.  Some loan programs will even go as high as 45-50%. This is how a bank determines how much of a house a buyer can afford and your ability to make your monthly loan payments.

Take the scenario above.  A buyer makes $750 in car payments, student loans and minimum payments on credit cards.  Leaving $2550 a month to go to their monthly housing expense.

The housing expense will include:

  • Principal and Interest Payment
  • Monthly Tax Payment Into An Escrow Account
  • Monthly Insurance Payment Into An Escrow Account
  • Private Mortgage Insurance
  • HOA or Condo Fees

Let’s estimate that the buyer is buying a single family home and is putting 10% down leaving them with a PMI payment.  We will use the following assumptions:

Taxes are $380 a month

PMI is $200 a month

Insurance is $110 a month

That leaves about $1710 left to go towards Principal and Interest on a mortgage.

Income is calculated at $7800 per month or $93,600 a year.

At a maximum DTI of 43% and an interest rate of 5.875% the price of a home they buy could not exceed about $375,000 for the purchase price of a home.

Different programs have different DTI requirements.  Some can go as high as 50% others below 40% but most loan programs will go up to 43%.  Note that their are many variable that factor into your DTI.

Breakdown of DTI

In years past the banks would break debt to earnings ratio down into two factions. 

Front-End Ratio-  Your front-end ratio is your housing expense alone.  Principal and Interest, Taxes, Insurance and Condo Fees are your housing expense.  In the previous example, your front-end ratio would be 31%.

Back-End Ratio- Your back-end ratio is your housing expense plus your consumer debt, which we calculated as 42% in the scenario above.

While today’s lenders still break down debt to earnings ratio into front-end and back-end ratios, most do not differentiate between the two.

What Does DTI Tell The Bank and You?

Your ratio shows the lender how your ability to make your monthly payments based on your current debt load and income While 43% to 50% is the maximum a bank will allow for a debt-to-income ratio, it is a guideline. 

When it is all said and done, your debt to earnings ratio shows how much house the bank thinks you can afford based on your income and expenses as well as factoring in your credit score.  

As for you, the lower your DTI, the more available funds you will have at the end of the month to go to long term savings, need purchases, home maintenance in more….

Your credit score will affect the maximum ratio a bank will consider for a loan program.  A higher credit score may allow for a higher DTI, while a lower credit score will lower the maximum DTI for a loan program.

What Is A Healthy Debt To Income Ratio?

Consensus on what healthy ratios are a 28% front-end ratio and a 36% total debt-to-income ratio.   

While many loan programs will allow for a mortgage preapproval with higher ratios, general consensus is the 28/36 rule allow a borrower to easily cover their obligations and be able to save money.

You Need To Do What’s Right For You

You can probably get qualified for a higher home loan than you think.  Just because the bank approves you for a higher loan amount does not mean that you are comfortable with the payments on your maximum loan approval.

Do what is right for you and your family’s household budget.  You are the one who has to cover the mortgage at the end of the month.  A balance will need to be met that you can live with.

how to caluclate debt to income ratio

How To Lower Your Debt To Income Ratio When Buying A House

Your DTI can be lowered.  There certainly are many variables that can affect your total ratio.

  • Purchase a less expensive home.  Think about what you really need versus what you really want. A less expensive home than you were first counting on can impact your ratios.
  • Increase your income.  Easier said than down but increasing your income will lower your ratios.
  • Raise your credit score.  Raising your credit score could lower your interest rate.  With all other variables remaining the same a lower interest rate will lower your DTI.
  • Lower your interest rate.  Shop loan programs with lower interest rates or consider paying points upfront to lower your home loan interest rate.
  • Lower Your Monthly Consumer Debt Payments.  Paying down or eliminating debt can go a long way in lowering your DTI.
  • Increase your downpayment.  See what an extra $10,000 or $20,000 dollars will do for your ratio.

The lower your total ratio is the more money you will have in your pocket at the end of the month for living expenses and savings.

Summary

Going into the home-buying process it is important to have an understanding of what goes into getting a mortgage.  

Having an understanding as you start to think of buying a home, will allow you to affect your Debt to Income Ratio in a positive way.   You also can calculate how much home you can afford as you start the process.

Unfortunately, the affordability of buying a home, especially your first one is high.  Anything you can do to put more money in your pocket at the end of the month will only benefit you.

Other Massachusetts Real Estate Resources:

  • Many home buyers start the home-buying process well before they are ready to buy a home.  A great way to get a handle on what houses have to offer in a certain price range in a particular community is by attending open houses.  Bill Gassett provides some insight into finding local open houses.
  • We have all heard the old adage that kitchens sell homes.  And, for the most part, it is a true statement.  Karen Highlands provides 2023 kitchen design trends that will appear to today’s buyers.
  • Some markets in the US are still overheated….. multiple offers, homes going well over asking, buyers giving up contingencies and more.   As prices go significantly past asking there is a chance that the home might not appraise.  Paul Sian gives us some great insight into using an appraisal gap clause in a contract.

What Is Debt To Income Ratio When Apply for a Home Loan? is provided by Kevin Vitali, your local Massachusetts REALTOR.  Thinking of buying a home?  Call me for your free home consultation and lets get you started on a new home.  978-360-0422

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Easements vs. Rights of Way: What’s The Difference

Last night I wrapped up a property showing with a buyer client of mine. During the showing, we discovered there was an easement with the property.

As a home buyer, it may be more common than you think to find an easement on a property.

It is also not uncommon for sellers to be completely unaware that they have easements or a rights of way.

As a seller, you can avoid some last-minute issues by disclosing any easements or rights of ways involving your property.

If you run into a property that has an easement or right of way it is important to understand what is the purpose.  As well as understand the legal rights and or responsibilities that go with it.

Alternatively, a property could also have the benefit of an easement or right of way giving you access to another’s land.  You will want to understand what your rights are in the use of that easement.

learn everything you need to know about easements and right of ways

 

The Difference Between an Easement and a Right of Way

Easements are legal rights that allow someone else to use land without having to pay rent or other fees. They’re often used by public agencies to build roads, pipelines, and power lines.

In both cases, you may own the land but others might have use of that land for a particular purpose. Or you could be granted an easement or right of way where you don’t own the land but have a right for a specific use.

An easement or right of way does not grant any possessory interest or ownership rights to the land. Both are granted by one property owner to another by a will, a deed or a contract. They can be for a specific length of time or indefinite.

A Right of Way Is A Type Of Easement

The difference between a right of way and an easement is a right of way is a type of easement. It gives a specific individual or a group of people a private right of way. Or, a public right of way grants the general public the right to cross the land and use it as a passageway.

Often a right of way is seen around waterfront property.  Here in New England a right of way is used to give beach access to the public. Use of the property is restricted to the purpose of gaining access to another piece of property.

Easement

An easement is where a piece of land or portion of that land is granted for another’s use. Easement rights can be granted for a wide variety of reasons.

Typical examples of common easements that are found around here are utility easements. A utility company is granted permission to install and maintain utilities running across your land.

It could be an easement for an electric company that gives the legal right to run a power line or power lines above or below ground.

A utility easement could also apply to gas lines and underground water pipes and water lines or sewer lines, etc….

The town or state could also have a drainage easement for your property to install and maintain drainage to maintain runoff from a public road.

Driveway easements are also very common in condensed areas. The owner of a home without a driveway due to tight lot lines may ask for the use of land owned by a neighbor for an easement to build a driveway.

Types of Easements

There are two main types of easements: (1) an express easement and (2) an implied easement.

Express easements are written agreements between parties that grant one party the right to use land owned by another party.

Implied easements are not written; rather, they arise when a property owner uses his or her land in a certain manner for so long that it becomes customary for others to do the same thing.  

Easement Terms

Appurtenant Easement- Appurtenant easements or an easement appurtenants are easements that apply even if a property ownership changes by a sale or transfer. It is considered to be “running with the land”

Gross Easement- An easement in gross allows an individual the right to use someone else’s land. The right is not transferred when a property is sold or transferred.

Affirmative Easement

 An affirmative easement gives the easement holder the right of access or use to cross the land and requires the property owner to do something like allow the action to occur.

Negative Easement

A negative easement is a promise that a piece of property may not have a particular use.  For example, it can’t be subdivided or have a building built on the premises. Sometimes large family estates are sold or passed on with the condition that the land will never be subdivided.

Prescriptive Easement

A prescriptive easement is when someone has used a piece of land, that is not theirs, for a period of time and seeks legal use of that land through an easement. While it sounds like adverse possession, it is a little different in the fact that that possession is not being sought, only the right to use the land.

Dominant Tenement

 The Dominant Tenement or Dominant Estate is the real property or parcel of land that holds the right of use over another piece of property.

Servient Tenement

The Servient Tenement or Servient Estate is the parcel of land that is subject to the easement or use of the land by others.

Learn everything about easments and righ of ways

 

How Do I Know If There Are Any Easement or Right of Way For Private Property

Start with the real estate agent listing the home.  Hopefully, they have done some homework and have already disclosed any easements. As an agent who lists properties, I can tell you many sellers are shocked when they discover there are easements for their property. They either never knew or they forgot about them.

A quick check of the property’s deed, plot plan, land survey or subdivision plan may reveal any right of ways or easements on a piece of property.

Beyond that, a title search should uncover any easements and right of way. A title company or attorney would run a title search during the normal course of a closing.  Often this is when easements are discovered.

Do Easements and Right of Ways Affect Property Values?

This would leave one asking, do easements affect property values? The quick answer is it depends.

If an encumbered property has an easement and that easement drastically reduces the ability for the owner to enjoy and improve their property, then yes an easement would affect the value.

On the other hand, an easement may not significantly alter an owner’s use of a piece of land and therefore it should not affect the value.

It boils down to how much does the easement control what an encumbered owner can and cannot do with the land. A simple right of way running across a small corner of the property probably would not impact the owner’s right to enjoy and improve his land. But a utility easement running across the lot 20 feet from the back door may have a significant impact to the use of land.

Real-World Example

As a real-world example, I was showing a home in Tewksbury MA today that had a utility easement running through the middle of the backyard. This is what actually prompted me to write this article The easement was 20 feet wide on a small lot. It ran smack dab across the middle of the lot that was only about 60 feet deep.

That 20-foot easement would prevent the new buyer from building a pool, a patio, etc…over that area. In the event that the town needs to access the sewer easement, any improvement would be dug up.  It would be done so at the owner’s expense. The sewer easement is affecting the use of your property in a negative way.  It is severely restricting the owner’s use of the land.  Therefore I would say, it affects the property value.

If you become aware of an easement in the course of buying a Massachusetts home make sure you understand what ramifications that easement may have on your use of the property. Talk with your buyer’s agent and if it seems a little more complicated certainly seek the counsel of an attorney.

FAQ’s about Easements And Right of Ways

I am building a shed and patio over an easement is that a problem?

Yes, it can be. Most often you would be talking about a utility easement. If the utility company needs to access the easement for repair they would rip up your patio and shed. And on top of it, they could bill you for the cost of demolition. Before altering the property over an easement consult a real estate attorney to fully understand your rights and responsibilities.

I want to build an addition and remove the easement the addition will be built over. How do I go about it?

It’s not that simple, most easements run with the land, meaning they are indefinite. The only way you can terminate an agreement is to get both parties to agree in writing. 

How Do I Terminate an Easement?

An easement can be terminated. But only if both parties involved agree.  Or it is shown there is no longer a need for the easement.

My Neighbor Has an Easement To Use Part Of My Driveway and I Need to Replace It, Can I Apportion A Cost Of It To My Neighbor?

It really boils down to the language in the easement. If it just states they have a right to use it, it could be an uphill battle to have them pay for a portion of replacement. But if the agreement states that they have the right to use and must help maintain, that could be a different story.  Seek counsel before making any decisions.

Summary Of Easements and Rights of Way

Easements and right of ways are probably more common than you think when you purchase a home. Align yourself with professionals that will help you discover if a home you are about to buy is encumbered by easements. Some easements may not be a big deal while others may significantly impact the way you enjoy a property.

This article Easements vs. Rights of Way: What’s The Difference, was written by Kevin Vitali a Massachusetts Real Estate Agent.  To discuss an upcoming sale or purchase contact Kevin Vitali at 978-360-0422.

Is Rent to Own A Good Way to Purchase a Home?

Rent to Own Contract the devil is in the detailsToday we are going to discuss whether rent to own is a good way to purchase a house or not.  You may hear other terms for rent to own like lease to own or lease option to buy.

While not terribly popular in New England because of the strong housing market, rent to own homes can still be found. 

I probably get several calls a month from a hopeful home buyer looking for a home they can lease to own. The rent to own or lease option gives the hope to many to buy a home instead of renting forever.

You will find where the real estate market is languishing and houses are sitting on the market, lease or rent to own options will be much greater than where there is a stong real estate market like we are seeing in the greater Boston area.

When you buy a home as a rent to own, it allows the potential sale of a home while the landlord covers costs waiting for you to perform on the purchase.

As well, allowing the home buyer to accrue a down payment and improve their credit to allow them to get a conventional mortgage.

What is Rent To Own And How Rent To Own Works?

Rent to own is where a renter/buyer and a seller agree to a predetermined price where the buyer rents a house and has the option to purchase the house they are renting before the lease runs out.  Typically it is a one, two or three year option to buy in the rent to own contract.

In return for the option to purchase the home, the renter pays an agreed upon option fee usually in the arena of 20% of the rent.  So if the rent is $2000 a month you would be paying an additional $400 dollars a month in option fees.

The option fee will be converted towards a down payment should the renter exercise the option to buy. 

Why Would A Seller Rent To Own?

Rent to own homes rise when the real estate market softens and it is harder for a seller to secure a buyer.  In a tough buyer’s market a seller could opt to rent to own their house to open up to a larger pool of buyers, with the hopes of getting the home sold in the near future.

Why Rent To Own vs Getting a Mortgage?

More often than not a renter/buyer does not have the proper qualifications to secure a traditional mortgage.  It could be a homebuyer has bad credit, their debt to income ratio is to high, they have not worked a job long enough, etc…

The rent to own the house option seems attractive.  It allows the home buyer time to fix their credit or other situations that may prevent a borrower from getting approved for a mortgage. 

Usually, the renter/buyer has a credit score that is too low to purchase a home or their credit may be fine but they need to pull a down payment and closing costs together. 

It is also an option for people who may not be fully committed to buying but want to keep their options open.  A renter can “test drive a home” before buying.  Or, in case of a relocation, a renter is waiting to see if a job contract will convert to a full-time position.

Is Renting to Own House a Good Way to Purchase A Home?

For 98% of the folks looking to rent to own, I implore you to think carefully. 

You are probably looking at rent to own homes for all the wrong reasons. The reason you can’t get a mortgage is exactly the reason you should not rent to own.  Impulse!  Control it. 

Take the time to fix your fico score and purchase a home with a traditional mortgage product.  Don’t put the cart before the horse. 

I certainly do not want to discourage someone to purchase a home with an option to buy, but understand the road ahead of you.

Advantages and Disadvantages of Rent To Own

The Advantages Of Renting A Home With An Option To Buy

  • Secure A Purchase Price-  Renting to own a home allows you to secure a purchase price.  if prices rise, great! If prices fall then you have the option to back out.
  • Test Drive The Home: Buying a home through a rent to own contract allows you to test drive a home.  Not only do you have time to see if the home is a good fit, but you also get a chance to find out if the neighborhood and the surrounding are right for your family.  This can be a good option for relo’s who know nothing about the area.
  • Move less: A home that is rent to own is great for a buyer who is committed to purchase and want to set roots in a community.  The rental period in a rent to own contract allows a buyer the time to pull the purchase together.
  • Build equity: Often there is a premium paid in a rent to own contract. The premium often goes toward the purchase price which creates automatic savings to go towards a downpayment. 

The Disadvantages Of Renting A Home With An Option To Buy

Usually there are many downsides to getting into a rent to own contract.  All of the rent to own contracts I have seen benefit the seller and puts the buyer at risk of losing a serious amount of money if they don’t perform on the option to buy.

  • Your Option Premium Is Wasted. Yep,  if you decide not to close or can’t close your option fee is non-refundable.  Your landlord received market rent and then some.
  • You’re Locked Into A Purchase Price. This can go either way for you, home prices in your area can go up or down.  But, it is very hard to predict where home prices will be two or three years from now. 
  • It May Benefit The Seller More Than You.  Think about why the seller is willing to get into a lease to own contract.  They could just sell it today and be done with it.  In my experience, they can’t sell their home for what they want and they are leveraging your poor financial situation.
  • Rent to own contracts are very seller weighted  Rent to own homes usually attract disadvantaged buyers that can’t secure a mortgage right now.  It puts the seller in an advantageous position.
  • You will be responsible for all the maintenance Unlike a rental the thought is that you are the one that benefits from repairs in the future and you are responsible.  And, if you don’t exercise your purchase options you leave all the repairs and upgrades for the landlord.
  • You still have the lease terms to abide by Until you purchase the property you have the terms of the lease to abide by. If you violate the terms of the rent to own lease then the option is considered null and void and you will be asked to leave or evicted.

Rent To Own I sputting The horse before the cart

The Devil Is In The Details Of The Rent To Own Contract

Everything in a rent own contract is negotiable.  Do not get involved in a contract to purchase a rent to own house without the contract being a win-win for both buyer and seller.  Here are a few points to consider when a contract on a lease to own option is drawn up.

  1. Hire an attorney.  Have an attorney review the rent to own contract so that he can spell out the downsides for you and possibly negotiate better terms. Local attorney Rick Carter of Carter Law points out there are many grey areas that can arise in a rent to own contract.  There needs to be many specifics spelled out to protect the renter/buyer.
  2. Do a Home Inspection.  A home inspector will point out current deficiencies in the home as well as short term maintenance that could be around the corner.  Negotiate any home repairs just like you do with a purchase.  You expect a house to be delivered safe, healthy and with all systems and structures functioning and serviceable.
  3. Get an appraisal.  An appraisal will confirm that you are paying a fair market price for the house.  Just like when a bank finances a mortgage they confirm the value with an appraisal.  If the home does not appraise for the purchase price you should consider walking away.  I would suggest two appraisals, one when you sign the rent to own contract and make the option contingent on the property appraising at or above the purchase price when you exercise the option.
  4. Make sure that whatever is preventing you from buying today will be corrected when the option to buy comes around.  Talk to your credit repair people or your mortgage broker.  You will need to be diligent to correct the problem.
  5. Understand the downside of the contract you are entering into.  Unfortunately, there are going to be downsides for a buyer in a rent to own contract.  Make sure you can live with those downsides.

Find Rent To Own Homes

Finding affordable homes for rent to own can be tough. Rent to own homes in Massachusetts are a little hard to find, but other parts of the country may have more rent to own homes available.

There are companies that may purchase a home and set you up with a rent to own contract with ahouse of your liking. Especially in hot markets like you find in the Greater Boston area of Massachusetts rent to own homes will be difficult to find.  A seller can easily sell a home without the hassle of rent to own.

  • Network-  Talk to friends and family about your desire to find a rent to own home.  They may know a landlord/seller that may consider that option.
  • Have your agent reach out to other agents– A real estate agent can quickly blast out they are seeking a rent to own situation for a buyer.  While most homes listed in the MLS are sellers that just want to sell, there might be a seller who has struggled to sell their home and would consider it as an option.
  • Hit Up For Sale By Owners- You may have a better chance of working with a home that is being sold as a for sale by owner. 
  • Talk to landlords-  A landlord that has been considering selling but isn’t fully committed might just consider a lease with an option to buy.
  • Do a google search and look use the term “rent to own homes near me” and see what comes up.

Is Buying A Rent To Own Home A Good Idea?

Rent-to-own homes have the potential to be terrible investments in my opinion.

It has both advantages and drawbacks. But the disadvantages, which can be many, may outweigh the benefits of purchasing a house in this manner.

Many contracts that are presented by the seller advantages the seller.  The consequence is that you will spend a lot of money and not have anything to show for it at the end of the day.  Make sure you negotiate the best possible terms and you fully understand how and why you could possibly lose all you money that you have paid towards the purchase and any maintenance costs.

Definitely consult an attorney when it comes time to review and sign a rent to own contract.

As far as saving for a down payment?  Just take a savings account and add 20% of your rent into that account every month. That is what you are doing anyway with a rent to own!  You can buy a house for as little as 3-5% down with very competitive interest rates. Also explore down payment assistance programs in your area.

A $300,000 home the downpayment can be as little as $9,000 to $15,000.  There are still some No Money Down Loan Programs available but are not available to a large pool of buyers.

If you want to explore financing options or work on your credit give me a call, I will set you up with the right professionals to get you buying in no time.

Other Related Real Estate Resources:

This article about Is Rent to Own A good Way to Purchase a House? is written by Kevin Vitali of EXIT Realty a Massachusetts REALTOR. Need help buying or selling a home? Give me a call at 978-360-0422 or email me at kevin@kevinvitali.com

Real Estate Services in the following areas: Northeast Massachusetts, Merrimack Valley, North Shore and Metrowest. Including the following communities and the surrounding area- Amesbury, Andover, Billerica, Burlington, Chelmsford, Dracut, Groveland, Haverhill, Lowell, Melrose, Merrimac, Methuen, Middleton, North Andover, North Reading, Reading, Stoneham, Tewksbury, Tyngsborough, Wakefield, Wilmington, Westford

What Does A Fed Rate Hike Mean For Home Mortgages?

Fed rate hike. What does it mean for mortgage interest rateFirst, let’s just get it out there….. The Federal Reserve does not set mortgage rates.

Yet, nothing puts fear in homebuyers fervently looking for homes and hearing about a pending Fed Hike Rate.  Many hear about the Federal Reserve increasing rates and assume it is a 1:1 correlation to interest rates on home loans rising. 

Meaning, if the Feds hike the rate by 3/4 of a point, interest rates for home mortgage will also rise 3/4 of a point. 

Homebuyers already feeling the pinch of massive increases in mortgage rates cringed as they heard the Feds were raising interest rates again in July.  The buyers have sat and watched their buying power get eaten up by earlier interest rate hikes in the beginning half of 2022.

But, as homebuyers heard the news of the rate hike, mortgage rates remained relatively unchanged.

While a Fed Hike Rate Hike does not directly affect interest rates on home mortgages, it definitely has a large impact on home loan interest rates, but not like you think.

What Does A Fed Rate Hike Mean?

The Federal Reserve Bank uses the Federal Interest Rate to control the supply of money.  The Federal Interest Rate controls the commercial interest rate charged between banks for short term loans. 

The Federal Reserve Uses Rate Hikes and Cuts To Control The Economy

In the case of a Fed Interest Rate Hike, the cost to borrow money is higher and the hope is people save money and not spend it.  As consumers spends less, it lightens the burden on the supply and demand. Hopefully it will cause prices to stabilize or fall. 

When the Feds cut rates, it is in hopes that in encourages the public to spend money and get the economy rolling.

Rate hikes and cuts are like a faucet to get more money flowing or restrict the flow.  It is one of the few tools the Federal Bank has to control the economy.

The July 2022 rate hike was in hopes of slowing inflation and avoiding a recession.

How Does The Fed Rate Hike Affect Mortgage Interest Rates?

As I said in the beginning of this article, the Federal Reserve Banks don’t control mortgage interest rates directly.

Though indirectly, a Fed Rate Hike will affect interest rates for mortgages.

First, realize that the interest rate for home loans is controlled by mortgage backed securities.  Similar to a bond, they are bundled home loans purchased by institutional investors.  Mortgage backed securities are an independent market and rise and fall on their own.

Not to say, that the rise in the Federal interest rate isn’t one of the factors that impact mortgage backed securites.

Fed Hike Rates Have A Psychological Impact On Investors

The impact a rate hike (or cut) has from the Feds is more psychological than anything.  When the Federal Bank raises the Federal Interest Rate, investors are looking for other signals about how the economy is doing.  

A change in the Federal interest rate is just one of many factors investors use to determine how to invest their money.  Investors try to look at the overall health of the economy.  Monetary policy is just one factor. 

What the Fed has to say after the hike or cut, is almost as important as the change itself.  Investors are hoping to get a glimpse of the economic future.

When investors feel that the economy is doing poorly or predicts a failing economy is around the corner, then mortgage backed securities are a safe place to park their money.  They get a decent return on a low risk investment.

As investors flood to mortgage backed securities, the interest rate drops because there is a greater demand than supply.  But as investors see a flourishing economy, the rate for mortgage back securities rise to attract investors who feel they may have better options.

The Federal Bank May Purchase or Sell Assets To Control the Flow

The housing economy is certainly an important segment for the overall economy.

The Federal Reserve will also buy and sell mortgage backed securities to help control the economy.  During the pandemic, the Fed started purchasing bonds and securities in hopes of spurring the economy.

The result from the purchases, during the beginning part of the pandemic, was a drop in mortgage interest rates.

The Federal Reserve’s rate hikes or cuts do not directly affect mortgage rates.  Instead, the effect it has on the United States economy can cause mortgage interest rates to rise or fall as it pushes investor towards or away from mortgage backed securities.

July 2022’s Federal Reserves Announcement

July 2022 was the fourth interest rate hike since the beginning of the year.  Each subsequent rate hike announcement has had a smaller and smaller impact on mortgage rates.

Overall, investors had already drastically reacted to the previous rate hikes and have already formed their decisions for the future.

The July interest rate hike by the Fed’s was a big one, .75 basis points.  Yet, mortgage interest rates have remained relatively unchanged.  As a matter of fact, interest rates on home loans dropped shortly after the announcement.

Many investors feel by definition we are in a recession, even though the administration has not called it yet.  That has had investors turning towards mortgage backed securities as they wait out any volatility in the stock market.

And as I pointed out earlier, as a growing group of investors seeks out mortgage backed securities, interest rates on home loans will drop.

federal reserve does not control mortgage interest rates

What Does The Latest Fed Rate Hike Mean For Homebuyers?

Homebuyers are already impacted by huge appreciation of houses over the past several years.  Combine that with drastic increases in mortgage rates and you will see homebuyers buying power eaten up.

What do I mean?  A homebuyer that was pre-approved for $600k back in January is probably looking at a $120k drop in their max pre-approval.  That’s the difference of $660k to $480k.

Of course, no borrower is the same and there are other factors that go into qualifying for a mortgage, such as debt to income ratio and a borrowers credit score.

I always tell buyers the time to buy a home is when it’s time to buy a home.  Don’t try to time the market.  If the timing is right to buy now, then buy.

For some markets, across the US, you may see a drop in home prices. Others will see appreciations slow drastically or even flatten. 

The remainder of 2022 and the beginning of 2023 will see the Massachusetts real estate market flatten out.

It will no longer be a market that favors the seller and will become a neutral market.  This will get rid of  of the chaos buyers have been experiencing the past couple of years.  

Homebuyers should also consider that if you wait on the sidelines, homes may still appreciate, at a much slower rate and interest rates could go up.  If you bought at the peak of the market in 2007, even though you saw some double-digit depreciation over the next few years, today you are sitting pretty with a ton of equity in your home.

Buy for the long haul.

How Will The Fed Rate Hike Effect Sellers?

Let’s face it.  Sellers have had it pretty darn easy the past few years.  Open house flooded with buyers, houses sold in a week, multiple offers over asking, etc…

But hyper appreciation of homes combined with much higher interest rates will make buyers hesitant and even push some out of the market.

In the whole scheme of things, this is only a small snippet of time driven by market conditions.

Today, in the Haverhill MA Real Estate market we are seeing days on market increase and home sitting on the market longer and more properties with price changes and much steeper price changes.  But, the market is still very strong.

For Massachusetts home sellers, the market will slowly start to soften.

Adjust your expectations and realize you will have to go back to the basics of selling a home.  This includes improving curb appeal, preparing your home, understanding pricing principles and more…

Summary

Federal Reserves rate hikes don’t impact mortgage rates directly, but can certainly influence how investors see the market and how they react as they go in and out of mortgage backed securities

There will definitely be some unpredictability coming up in interest rates for home mortgages, but don’t think it is solely because of the Fed rate hikes.  Look towards the overall economy in general.

Other Massachusetts Real Estate Resources

  • Is the market turning towards a buyer’s market?  Bill Gassett explains how to identify a buyer’s market.  Signs to look for are increased days on market, price decreases on current inventory, and more.
  • During my real estate career as a Massachusetts real estate agent, I am constantly seeing buyers and sellers trying to time the real estate market.  Paul Sian gives some great advice on trying to time the real estate market and why it could be a big mistake.
  • Sometimes it can be difficult to sell a house.  And, it may have nothing to do with the house itself.  Vicki Moore covers 6 reasons your house may not sell.

 

Encroachments In Real Estate: What You Need To Know

Enchroachment in Real EstateEvery homebuyer and homeowner should be aware if there are encroachments on their property or, a potential property you will purchase.  An encroachment in real estate is if a neighbor accesses your land for their benefit without your permission.

While most property encroachments are minor, some are not and can significantly affect the value of your home or impact your ability to get a mortgage.

At the very least, an encroachment can be a significant nuisance.

What is the Definition of Encroachments?

Simply put, encroachment is when one property owner violates the property rights of another.

This can include one unlawfully accessing land or building, adding a structure, or extending structures onto their neighbor’s land without permission. 

Encroachment is basically where an unauthorized user accesses or takes advantage of the benefit of your land for their own use.

More often than not, encroachments are unintentional and caused by others not knowing where a property boundaries exist with certainty.

Examples Of Encroachment of Property

An encroachment of land can run either way.  You, yourself, can be creating an encroachment on either a neighbor’s land or city property, or, your neighbor can be the violating

  • Your neighbor builds a shed with one corner over your property line. The shed is now encroaching on your property.
  • Your driveway that runs partially on your neighbor’s yard encroaches on your neighbor’s property.
  • A tree on your neighbor’s property that overhangs your house is encroaching on your property.
  • You create a path that crosses across the backside of your neighbor’s yard to access a lake.
  • A neighbor extends a deck across his property line onto yours.
  • Fencing was installed on the wrong side of a property line.
  • Plantings your neighbor has installed past your property line is an encroachment onto your land.

Anytime someone accesses your land for their own use, you are being encroached upon.

Types Of Encroachments in Real Estate

There are two types of encroachment when it comes to real estate.

Minor Encroachment

Minor encroachments are when the encroachment has not significant impact in value of a property.  A garden or fence extending a few inches past a property line would be a minor encroachment.

A minor encroachment can usually be a simple resolve by communicating with each other.

Major Encroachment

A major encroachment is one that can have a more serious financial impact.  It can be a permanent structure built on your land or a branch overhanging your house, creating a liability.

Major encroachments will have to often be resolved by legal action and a court decision, especially when parties are not in agreement.

What To Know About Encroachments When Buying A Home?

When buying a home, it is important to know about any encroachments on the property.  Without knowing the exact boundaries through identifying boundary markers in conjunction with a survey, it may not always be obvious.

A large tree limb overhanging a roof that is on the abutting property is a clear that is encroaching on your property.

But there may be other things that encroach on a property that may not be so obvious like landscaping, fences etc…

Trying to get a rough look on Google Maps, a previous Mortgage Plot Plan or GIS Assessor Maps may indicate the property lines and if it is being encroached upon.

What’s The Big Deal About A Minor Encroachment?

There are several reasons that an encroachment can be a problem for you as a homebuyer.

Marketable Title

Marketable title means the home is free from any title defects that may pose litigation in the future and is free from all encumbrances.

If there is an encroachment on your property that is not resolved, it can affect your title to the home.  Meaning, the bank will not finance the property.

Liability

Unfortunately, even if someone is on your property uninvited, if they get injured they could bring a lawsuit against you for damages. 

A home and land that you purchase that have been encroached upon can lead to a future liability for you.

Affect Value

Encroachments can affect the value of a home by reducing the size of the lot or by changing the character of the property.

If you are purchasing a property that has been encroached upon, it is important to be aware of any encroachments and how they could affect your purchase and future value.

If you know about any encroachments prior to a purchase, it will be in your best interest to work with the seller to rectify the problem.  It could be a matter of a shed being moved, a walkway being moved etc…

Can Become Litigious

As property changes hands, a minor encroachment issue can become litigious with every new owner. 

When you buy a new home, you don’t want the hassle in the future dealing with an unreasonable neighbor.

Adverse Possession

Land that has been encroached upon for many years without a formal legal agreement or acknowledgement can be subject to adverse possession.

Adverse possession is where someone has open, uninterrupted use of the land that goes uncontested.  After a period of time, they can claim the land as their own.

While rare, it is still a distinct possibility

If you have not purchased the home yet, try to get the seller to fix the problem before taking possession.  If that is not possible, talk to your attorney to see what impact the encroachment may have in the future.

what is encroachment

 

 

Difference Between Encroachments and Easements

It is easy to confuse encroachments with easements.  Both can become an encumbrance for the property.  Meaning, they can affect value.

Both are a matter of someone using your land.  An encroachment is unauthorized use where an easement is authorized and memorialized with legal documentation.

A right of way is a type of easement, for example, the use of your land for a neighbor or the public to cross the property to access a lake.  But a right of way, if properly done, is recorded on both deeds of the both the owner of the land and the abutter who has the right of way.

What To Do If You Are Encroached Upon?

If you find yourself the victim of an encroachment, the first step is to document the situation.  You can do this with a sketch or photo documenting where the encroachment occurred and what was affected.

First, reach out to your neighbor and see if by simply communicating with them if the issue can be resolved.   Often the offender does not even know that what they did was an issue, and they will be likely to want to rectify the situation.

If that fails, you can reach out to a land surveying company to get a legal opinion on the encroachment and how to rectify it.

If all else fails, then you may need to take legal action.

Other Real Estate Resources:

Encroachments In Real Estate: What You Need To Know is provided by Kevin Vitali of EXIT Realty. Are you thinking of selling your home? Call Kevin at 978-360-0422.

Real Estate Services in the following areas: Northeast Massachusetts, Merrimack Valley, North Shore and Metrowest. Including the following communities and the surrounding areas- Amesbury, Andover, Billerica, Burlington, Chelmsford, Dracut, Groveland, Haverhill, Lowell, Melrose, Merrimac, Methuen, Middleton, North Andover, North Reading, Reading, Stoneham, Tewksbury, Tyngsborough, Wakefield, Wilmington, Westford

23 First-Time Home Buying Tips That Matter!

23 First Time Home Buying Tips

Buying a home as a first-time homebuyer is a big deal.  There is so much you need to know as a first-time homebuyer to have a successful home purchase.

Like anything in life, the more you put into buying your first home the more you will get out of it.

Today we will discuss some first-time home buying tips and advice that will set you on the path to successfully buy your first home.

The first-time home buying tips will be broken down into:

  • Preparing to Buy
  • Financial
  • Viewing Homes
  • Making an Offer
  • Closing on a Home

 

Tips to Prepare To Buy

A have been a buyers agent helping first-time homebuyers in Massachusetts for almost 20 years.  Often I will see buyers struggling on their own in frustration because they have not taken the time to understand the various aspects of buying a home.

#1 Deciding That Buying Your First Home Is Right For You

The decision to buy your first home should not be taken lightly.  Buying your first home just because all of your friends are, doesn’t mean you should.

Double-check your motivations.  Are you ready to plant roots in a community? Are your job and income stable? Can you comfortably afford to buy a home? Is owning a home a lifestyle you want to live right now?

Don’t get saddled with a home you don’t want. you could create a bad financial situation or just be unhappy.

#2 Start Preparing To Buy Your First Home Early

For most buyers, the thought of buying a home is in their head months or even a year or more before they jump into buying a home.  Start preparing early to get a handle on the home buying process, the market, your finances and to set realistic expectations.

There are many things you can get in place prior to ever looking at homes that you can do at a leisurely pace rather than having to do it at the last minute in a panicked frenzied.

You can get a handle on the market by watching homes online, you can organize your finances, work on improving your credit and take the time to find the right professionals to help along the way.

#3 Get Your Hands On Your Credit Report

Get your hands on your credit report right away.  It is not unusual for there to be mistakes that are dragging your credit down.  You can get a free annual credit report on your own or by getting approved early by a mortgage officer.

Don’t let last-minute problems with your credit hold you up.  If you are in the fray of buying you aren’t going to have time to correct some issues and you may end up with a less than desirable mortgage program.

#4 Know There Will Be Things You Don’t Know And Your Need Help

Real Estate Agents and Mortgage Professionals are immersed in their professions daily. One big mistake is first-time homebuyers don’t know what they don’t know!!

But these real estate professionals do.  Find the right professionals to help you along your journey they can make all the difference in the world for you. Line up the right agent and mortgage officer before looking at homes. 

Start assembling your home buying team now! Talk to real estate agents and mortgage brokers.

#4 Take the Time To Understand Agency

In Massachusetts and many other states, an agent can work with you in many different capacities.  It can actually be darn right confusing.  The only real estate agent that works on your behalf is a buyer’s agent.

A buyer’s agent has a fiduciary responsibility to work in a manner that promotes your best interest. 

For example, a listing agent, who is the agent with the sign in the ground has a fiduciary responsibility to the seller and not the buyer.  A listing agent can help you buy their seller’s home, but at every twist and turn, they have a legal obligation to benefit their seller and not you!!

When push comes to shove, you will be thrown under the bus.  Take the time to understand real estate agency and what capacity different agents have in their dealings with you.

#5 Understand The Type of Real Estate Market You Will Be In

Often a first-time buyer will enter the real estate market with certain perceptions from friends and family buying in the past.  But real estate markets can change on a dime.  You need to understand how the real estate market is performing right now, not two years ago when your sister bought a house.

The type of real estate market you are in will play a heavy role in how you look for homes and how you structure and negotiate and offer.  In a seller’s market, which we are in right now in November 2020, inventory is low and buyers are competing for good homes.  Versus, November 2010 where it was a buyer’s market and sellers were competing for buyers attention!

#6 No Question Is Stupid

Once you start working with a buyer’s agent and mortgage professional, don’t be afraid to ask questions.  There are no stupid questions.  If it is on your mind ask. 

You aren’t buying a $200 TV here, you are spending $100’s of thousands of dollars.

Often a buyer will say this may be a stupid question…. but when they ask it is a very valid question.  A real estate transaction has many facets some with legal and financial ramifications.  It’s your life, ask the questions no matter how silly you think it is.

 

Financial Tips When Buying Your First Home

The financial aspect of buying and owning a home is one of the more complicated pieces of the buying process.  Get a handle on the financial aspect early so you are making good decisions, have a full understanding of the costs and aren’t running around like a mad man at the last minute.

#7 Get-Pre-approved

Your mortgage pre-approval is critical.  Get pre-approved before looking at houses.  First, no seller will take you seriously without a good pre-approval and an understanding of your financial ability to buy a home.

Secondly, without a good pre-approval, you can’t have a full understanding of your finances.  If a mortgage professional takes the time to properly pre-approve you, it is only then you can have a full understanding of what your mortgage will cost you and what the closing costs are associated with buying a home. 

Waiting to talk to a mortgage officer when you are trying to get a home under contract is a mistake.  You are in a hurry and you often end up in a less than desirable mortgage program.

#8 Have An Understanding Of The Costs Associated With Being a First-time Homebuyer

Of course, you know you need a downpayment.  But don’t forget about the closing costs which can run another 2-4% of the purchase price of a home.

But beyond closing on the home, there are other costs to homeownership you should be aware of.  There are taxes, insurance and home maintenance, utility bills that may include water and sewer.  Talk to family and friends as well as your @realtor to get a full understanding of what costs are associated with buying and owning a home.

Don’t put yourself in a position where every cent you make goes towards owning a house.  You want to live a life after closing on a home.

#9 Work On Improving Your Credit

In the previous section of first-time homebuyer tips on preparing early, we suggested pulling your credit.  But while you are in the pre-buying stage and looking at homes there often may be improvements to your credit that can make a difference. 

First dispute any mistakes.  Work with your mortgage officer.  He may make some suggestions that could raise your credit score.  Approximately, every 20 points in credit score can impact your interest rate and mortgage programs available to you.  A difference between a 673 credit score and a 680 credit score could be significant for you as a homebuyer.

Often a buyer can improve their credit by a few to 20 points in a short period of time.  I have also had a buyer increase their credit score by 112 points in less than 45 days!! 

#10 Shopping For Your First Mortgage

Many consumers are under the impression that shopping for a mortgage means trying to get the best interest rate.  But there is more to it than that.  Of course, you want the best interest rate possible.

But for many first-time homebuyers, they are putting down a minimal downpayment.  It is also important to discuss mortgage programs and the advantages for you. 

The subtleties in mortgage programs can mean the difference between qualifying for a mortgage or not.  Or, if put in the wrong program, it can costs you hundreds of dollars in your mortgage payment a month.

#11 A Word On Interest Rates

As I mentioned getting pre-approved early is important.  Often I run into home buyers that have been out in the market place making assumptions based on advertised interest rates. They have avoided talking to a mortgage professional and are basing their budgets on the teaser rates often advertised by banks.

Read the fine print!!

The teaser rates are just that… they are based on putting down 20-40%, having a credit score of 720 or more and buying a single-family home.  Often the criteria for the teaser rate is unattainable for many home buyers. 

Tips On Looking At Homes

Once you have taken the steps to prepare yourself to buy and have taken to understand the financial commitment, it is time to seriously look at homes. Here are some first-time home buying tips for when you actually shopping for homes.

#12 Look Towards The Long Term

When buying a new home, think 5-7 years out.  If you aren’t planning on owning a home for 5-7 years maybe you shouldn’t buy. 

There is a substantial cost of selling your home.  Real estate markets usually rise but in the short term markets have their highs and lows.  5-7 years will usually allow you to weather those ebbs and flows in the real estate market.

Don’t just think of your needs now.  Make sure your home will suit you and your family for its future housing needs.

#13 Don’t Get Caught Into the Glitz and Glam Of A Home

Everyone loves shiny and new.  But shiny and new is only good when the underlying quality of the home is good and the workmanship is of professional quality. 

You can live with an outdated kitchen and bath, but issues like a leaking roof, insect damage, a failing heating system or electrical system can’t be ignored.  Plus they are all costly repairs sometimes running into tens of thousands of dollars.

Pay attention to the basics first to make sure you are buying a solid home.  Don’t get stuck buying a pig with lipstick!! 

#14 Cheap Is Not Always Good

Like most things in life, you get what you pay for.  This includes real estate.  Houses are priced a certain way for a reason. 

If you are buying a home that needs work, make sure you can financially handle the work as well as being capable of completing the work.  Sometimes it is prudent to spend more money on your upfront purchase on a house that is updated and in good shape than it is to buy a fixer-upper that will cost more in the end to own.

#15 Pay Attention To More Than Just The House

When you are buying your first home you are also buying into a neighborhood and community.  Pay attention to the neighborhood as you approach a home for your showing.  Is this an area you can see yourself living in?  Is it quiet, does it have nearby amenities?

Do a little research and make sure the community itself offers you what you need.  Good school systems often top the list of what home buyers want out of a community. 

For example, you may have a 2-year old that isn’t in school now but in several years the school system may be important to you. This also ties in with buying for the long term.  Your community needs to serve you for the future as well as now.

#16 View The Houses In Person

There is only so much an online listing can tell you.  But to truly get a sense of a home you need to visit it in person.  Whether your agent schedules a personal showing, go to an open house or even do a quick driveby, it is important to get your feet on the ground.

If you have any interest in a home at all don’t discount it because of what you do or do not see online.  Check it out.  Especially if inventory is tight and you are struggling to find a home.

#17 Be Realistic

Every homebuyer starts out with certain wants and needs.  But wanting or needing something does no mean you are going to find it.  Your wants and needs may exceed your budget.  Hopefully, you have spent some time looking at houses in your price range and have a realistic idea of what is available in your budget.

For example, many homebuyers in my market will want to purchase a single-family in the desirable town of North Andover.  Say your budget is $350k.  6 houses sold under $350k in the past year.  You may say, great!  But when you are buying in the bottom 10% of a market you will find the home to be severely challenged by condition, layout, location or appeal.  That translates to one new house coming on the market every two months.

Contrast that with a buyer that has a budget of $550k and 67 homes have sold in the same time period for about 6 new houses coming on the market a month.  Or Haverhill having sold 138 homes under 350kin the same time period.

Make sure what you want actually exists or you will waste valuable time looking for that one unicorn.  Remember in a seller’s market house can rise at a rate of .5 t0 1% a month pricing you out of the market.

#18 Be Flexible And Adjust

Being successful in finding your new home requires you to be flexible and adjust.  If you are not finding what you want in 12-15 homes it may be time to adjust your wants and needs.  Look a little to the right and left of what you think you want.  Following is an excerpt from something one of my first-time homebuyers wrote and it sums it up nicely.

 

“I remember day one going in with a list of our “must-haves” and our “deal breakers”. I could not tell you what was on those lists, because well, I made about 50 lists. Lists are helpful, to some extent. The lists do change, those must-haves become maybes, and those maybes become deal breakers. Keeping an open mind and looking at the bigger picture was important. I remember giving Kevin 5 towns we wanted to stay within. Funny, we are not in any of those towns”

I can tell you what my buyer client went through is pretty typical.

Tips For Writing an Offer and Closing On Your New Home

You have taken the time to prepare to buy your first home, you have spent months looking and you have put a house you are ready to negotiate and offer.  Here is some advice for first-time homebuyers while they are in escrow.

#19 Know Your Numbers

Before putting in an offer know your mortgage numbers and be comfortable with it. Don’t get caught with any financial surprises. 

Also, know the market and what a house is worth.  Have your agent run a CMA to give you a range of fair market value. Lowballing an offer usually leads to disappointment. 

Talk about negotiating strategies that are effective for current market conditions with your agent.  Negotiate to get the house you want and don’t lose it over a few dollars.

#19 Keep Your Offer Clean

Avoid complicating offers with a ton of contingencies and requests.  Focus on getting a fair price and go for it.  Asking for furniture, lawn equipment or asking for contingencies outside the standard mortgage and inspection contingencies just muddle the negotiations.

#20 Take Your Home Inspection Seriously

Your home inspection is your last line of defense. In competitive markets, buyers may give up their rights to a home inspection but don’t.

Make the most of your home inspection.  Understand what it includes and doesn’t include.  Show up and ask and be prepared to ask questions.

Work with your buyer’s agent and hire a great home inspection and review any issues with your agent.  You should expect a home to be safe sound and all systems functioning unless otherwise specified.

Tips For Closing On Your New Home

A typical closing is between 30-60 days after submitting an offer.  Here is some advice for first-time homebuyers that will make your time in escrow move smoothly.

#21 Time Moves Quick

Be prepared to act quickly.  The bank will be requiring a lot of documents and want them quickly.  It is a hurry up and wait game that can be frustrating.

Know what the bank is going to expect from you and be prepared to deliver in a timely manner.  Don’t you be the reason why your closing is delayed.

#22 Keep Your Credit Status Quo

While waiting to close on your home keep your credit profile exactly as is.  Don’t make any changes.  Avoid changing jobs, don’t buy a boat or a car, don’t close credit cards and don’t open new ones.

In your excitement to own a new home, you might be tempted to open up a Home Depot credit card or one at Jordan’s furniture.  This is actually a common home-buying mistake.  But wait until after the closing before making changes to your credit.  A new card could impact your ability to qualify for your mortgage.

And, as a last-minute tip banks will pull your credit and verify your job, once again just prior to closing.

#23 Don’t Skip Your Final Walkthrough

Your final walk-through is one of the final steps of the home buying process. It is your final chance to make sure the home you are about to purchase is in the same condition as you viewed it, there is no new damage to the house and that all the systems are functioning properly.

Once you close on your home, you are agreeing you are buying the house as-is and will have very little recourse after you move in.  Don’t skip your final walkthrough and make sure you go through the home thoroughly

Final Advice For First-Time Homebuyers

There are so many other first-time home buyer tips I could pass along but I pulled out many of the more important pieces of buying your first home.

Get an advanced understanding of each step and rely on your professionals.  A good mortgage professional, real estate agent and attorney are worth their weight in gold.

They know what you don’t know and it is automatic to them.  They are immersed in real estate every day.

Be prepared to buy your first home and enjoy this exciting time.

23 First-Time Home Buying Tips That Matter! was written by Kevin Vitali- Your Massachusetts REALTOR.  If you are looking to buy a home, I would love to partner with you to help you make the most out of your first home purchase.  Call me at 978-360-0422 let’s chat!

 

 

Pre-Offer Home Inspection- Competitive Home Buying 2022

 

pre-offer home inspectionThe real estate market for 2022 shows it is going to be much of the same.  What does that mean to a home buyer that hasn’t bought in many years, or a home buyer entering the market for the first time? 

Chaos!!

I met with a buyer looking to buy a condo who hadn’t bout a home in almost 20 years.  When I described the market and what buyers are willing to do to compete for good homes, they were taken aback. 

The buyer was completely against giving up their home inspection.  This lead to a conversation about a pre-offer home inspection.

What’s Happening With The 2022 Real Estate Market?

Before we delve into talking about a pre-listing home inspection, let’s look at what is happening in the market. 

The 2021 real estate market will continue into 2022.  What does this mean for home buyers?

Well, many homebuyers are willing to take aggressive steps to get their offer accepted.  Those steps include:

  • Offering over asking.  Many home buyers are willing to offer over asking to compete.  On average Essex County homes went, on average, 4% over asking.
  • Offering appraisal gap coverage.  Appraisal gap coverage is where a buyer guarantees the buyer will buy the house even if the appraisal comes inf low. 
  • Waiving Home Inspections.  Aggressive offers include waiving home inspections.  Meaning, the buyer, is willing to take the house as-is without doing their due diligence with the home inspection.

These are some drastic measures, homebuyers are willing to take to get an offer accepted.

Waiving Your Home Inspection Is A Big Deal

It’s a catch twenty-two.  As a homebuyer, you want to make sure your offer is accepted on the home you want.  But on the other hand, you want to make sure you are buying a safe and sound home.

The reality is, if you keep a home inspection contingency in your offer, it probably won’t get accepted.  There are many home buyers willing to waive the home inspection contingency and offer a competitive price as well.

Why is that important to a seller? 

Any contingency is a risk to the home seller.  And a home inspection offers plenty of risk to the home seller.  A home inspection can lead to a reduction on price for significant repairs.

Or worse yet, the buyer terminates the deal and the seller is left putting the home back on the market.  A home that has had a home inspection and has been put back on the market becomes stigmatized by buyers, whether it is real or perceived.

Why A Buyer Should Think Carefully

So it’s a conundrum for a buyer.  You want the house, but you want your home inspection. 

Yet, you know full well if you keep your right to a home inspection, you probably won’t get the house.

You also know the home you are about to buy could have unforeseen problems after you close on it.  Those issues can lead to repairs that could cost 10s of thousands of dollars or even more!!

Even if there is no one major, costly repair, homes can have multiple issues that can add up to a big repair bill.  Make sure you have cash on hand after you close for any significant repairs if you forgo your inspection.

Or another solution is considering a pre-offer home inspection.

Pre-Offer Home Inspection

So what is a pre-offer home inspection?

The pre-offer inspection allows for you to get an inspection done prior to writing your offer.  The inspection lets you make an offer knowing what issues a home might have and give you the comfort knowing nothing major is wrong.

But, by having the inspection before writing your offer, you can now waive your home inspection contingency.  This allows you to compete with other home buyers willing to waive the home inspection contingency all together.

pre-offer home inspection

What To Know About Pre-Offer Home Inspections

The first thing to know about the pre-offer home inspection is that sellers may not allow it. 

The seller is under no obligation to allow you to have a professional home inspection at all, never mind pre-offer.  But I would imagine any seller working in good faith would allow an inspection before writing an offer.  If not, you may be left wondering what is wrong.  Maybe the seller is hiding something and you should walk away.

You will most likely be fighting time constraints.  You may have only a day or two before offers are due and you have to work around other showings.

The inspection may be modified to fit it into a restricted time frame. Often the inspector will focus on major items and skip over the picky minute details of an inspection.

Typically because of the tight timeline, the inspection will be verbal only, with no written report.

The final thing to note about having an inspection before making an offer is you may not get the home and lose it to another offer.  Doing an inspection on every home you make can get costly.

Should I Do An Inspection Prior To Making An Offer?

Whether you do an inspection before writing an offer or not is a decision you need to make.

Consult with your REALTOR the current real estate conditions in your area and what they are seeing in offers that are getting accepted.  The whole point of a home inspection is to uncover latent material defects.  Basically defects, that are unseen at a showing or undetected by the lay person.

In the past year and a half,  I have had only one offer accepted as either an agent representing a buyer or as a listing agent, that had a home inspection contingency. All the other accepted offers had the inspection waived.

Those defects could range anywhere from minor to costing a significant amount of money to correct.

Let’s face it, a normal home buyer can’t determine the condition of a home by a 15-minute showing.  It requires an expert to pick up on the details.  If waiving your inspection contingency seems to be the norm, strongly consider having a pre offer home inspection to protect your future interest.

Other Real Estate Resources:

Pre-Offer Home Inspection- Competitive Home Buying 2022 is provided by Kevin Vitali of EXIT Realty. If you would like to sell or buy a home, give me a call at 978-360-0422 and let’s get the process started.

Real Estate Services in the following areas: Northeast Massachusetts, Merrimack Valley, North Shore and Metrowest. Including the following communities and the surrounding areas- Amesbury, Andover, Billerica, Burlington, Chelmsford, Dracut, Groveland, Haverhill, Lowell, Melrose, Merrimac, Methuen, Middleton, North Andover, North Reading, Reading, Stoneham, Tewksbury, Tyngsborough, Wakefield, Wilmington, Westford

 

 

 

Down Payment Assistance

Buying a home can be a daunting task.  Never mind finding just the right home that fits your budget.

But on top of that you have a down payment and closing costs to worry about.  Buying a house may be a top priority for you and a goal you are determined to accomplish. Exploring your down payment assistance and grant options may help make buying your first home a reality.

Now you can stop paying your landlords mortgage and pay your own!!

By tapping into the available grants and programs to help fund a down payment, you can get much needed assistance with the upfront costs of buying a home. In some cases, I have seen buyers walk away with less than a $1000 out of pocket.

Do you have the income to support a mortgage, but not the funds for a down payment and closing costs? Consider any number of first-time homebuyer grants or down payment assistance programs.

What Is A Down Payment Assistance Program?

Most states and some towns or regions offer down payment assistance programs. The purpose of the programs is to allow low to moderate income home buyers the ability to buy a home.

The assistance is usually in the form of home buying grants provided by the federal government to states and municipalities.

Often, eligibility for assistance in a first-time home buyer program is based on the percentage of household income compared to the median income of a particular region.

The home buying grants by way of down payment or closing cost assistance comes in many forms.

What Does Down Payment Assistance Look Like?

Most likely, your down payment assistance will come in the form of a soft second mortgage. It will be subordinate to the first mortgage on your home.

The sale or refinance of your home will trigger the repayment of the mortgage. And, the forgiveness of the loan is possible if the loan has been held for a certain period of time.

How Do I Find First-time Home Buyer Programs Offering Down Payment Assistance?

Finding the right home buying assistance will take a bit of research. Most states have a non-profit housing program that offers specialized mortgages for first-time home buyers, home buying classes and seminars, access to down payment assistance and generally promote homeownership amongst the low to moderate income community.

To start, Google search terms like:

[Your State] first-time home buyer programs

[Your State] down payment assistance

[Your State] down payment assistance programs

[Your State] home buyer grants

In my state where I do real estate, Massachusetts, you would run across MassHousing a non-profit agency that works with low to moderate income families to be able to purchase a home.

Look into programs provided by your state. They will have first-time home buying grants available or at least guide you to where you many be able to find down payment assistance programs.

Down Payment Assistance On The Municipal Level

Also, Google down payment assistance for [your city]. Many cities may provide home buying grants for their community. It may be for the entire city or specific areas of the city.

Often the lower income communities will offer first time home buyer grants. But, it is still worth checking with any city, even higher income communities to see if any programs exist for first time home buyers.

It is possible to combine two programs and get enough money to cover down payment and closing costs. Some great low money down programs to consider are an FHA mortgage, MassHousing mortgage, a Home Possible mortgage or Home Ready mortgage.

While there is no guarantee you can combine programs, it is worth trying. Not only will you have essentially a no-money down mortgage, you may be able to get all or some of your closing cost covered.

Your Mortgage Officer And Home Buying Grants

Most mortgage officers have some knowledge of some down payment assistance or first time home buyer grants that may be accessible to you. But, there are always a handful of mortgage originators that specialize in home buyer down payment programs and grants.

If you can find out who those people are. They have a vast knowledge of available programs and how to work them and get them to close on time.

Eligibility

Eligibility into state and city programs offering down payment assistance can vary. But, you will often find some commonalities.

Eligibility requirements that are commonly seen.

  • Participants must be first time home buyers. A first time home buyer is defined as a person who has not owned a home in the past 3 years.
  • Income requirements are based upon your income compared to the area’s median income. A common percentage will be 80%. Determination of your income eligibility can be complex and will be determined by your loan officer.
  • First time home buyer class required before closing.
  • Home must be owner occupied.
  • The 2nd mortgage is due upon sale, refinance or the home it becomes no longer an owner’s primary residence.
  • Asset limits. Usually, a borrower can have no more than $50,000 to $75,000 in non-retirement assets.

Massachusetts Down Payment Assistance and First-Time Home Buyer Grants

First, let’s take a look at two popular statewide programs. The purchase of a home anywhere in the state is possible with either program.

Federal Home Loan Bank Equity Builder

The FHL Bank Boston Equity Builder program is available to anyone in Massachusetts that meets the eligibility requirements. Community banks across the state offer the EBL program.

It provides up to $15,000 in down payment assistance. By remaining in your home for 5 years the grant may be forgiven.

Selling or refinancing your home before the 5 years is up will require the loan to be repaid.

The EBL funds can be used with loan programs from MassHousing, as well as the Home Ready and Home Possible loan programs from Freddie Mac and Fannie Mae. Funds are limited and on a first-come first-serve basis.

MassHousing Down Payment Assistance

MassHousing is a semi-public agency created to provide affordable housing mortgage products to low to moderate income borrowers. The sale of bonds funds the MassHousing programs.

Since 1966 MassHousing has provided more than 27 billion dollars to provide affordable housing.

MassHousing is one of the first agencies a lender will turn to in Massachusetts to help fund a loan for lower income borrowers. Their loan products start with a low down payment for a little as 3%.

Besides offering mortgage products perfect for lower income borrowers, MassHousing also offers a very strong down payment assistance program.

The agency will provide up to $15,000 or 5% of a purchase for down payment or closing costs. If you are purchasing in a gateway city in Massachusetts, the number jumps to $25,000.

What Is A Gateway City?

A gateway city is one that is a small to mid-sized community that is an economic anchor for the region. Often the gateway cities have passed their economic peak due to social and economic change.

Once the hub of manufacturing and regional economics, the gateway cities have fallen on harder times as manufacturing shifted out of the communities.

The gateway cities of Massachusetts offer untapped potential moving forward and can provide growth moving forward.

The gateway cities in Massachusetts include Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, and Worcester.

First-Time Home Buyer Grants and Down Payment Programs by Massachusetts Towns and Cities

Many of the gateway cities offer down payment assistance as well. And, it is certainly worth a quick check to see what type of financial assistance is available to make a first time home buyer purchase.

To touch on a few:

  • Lowell– There are several programs available by different agencies in Lowell of up to $12,000 in down payment and closing cost assistance.
  • Haverhill– Financial assistance of up to $7500 may be available if you purchase in different areas of Haverhill.
  • Salem– The city will match your down payment of up to $7500. Assistance for down payments are not just limited to gateway cities.

Down payment help is not available through the gateway cities alone. Other communities offer down payment assistance as well.

  • North Andover- The town of North Andover will provide up to $10,000 dollars in assistance to eligible purchasers.
  • Medford- Up to $8500 dollars may be provided in assistance to go towards down payment or closing costs.
  • Newburyport- The city offer 10% or up to $15,000 dollars in funds for low income borrowers to purchase a deed restricted unit.

Financial assistance for first-time homebuyers is not limited to just these towns and cities. But, they do provide you with the idea that there are plenty of funds to tap into to help you with the upfront costs of buying a home.

Other Financial Assistance For First Time Home Buyers

I have touched upon some major resources for financial assistance for first-time home buyers to tap into money for down payments and closing costs.

But, assistance is not limited to these choices. There may be other federal or state grants available.

Also, community banks may have specialized community lending programs. While they may not provide down payment funds, they could provide some great terms and interest rates on a mortgage product.

Summary

You may find you have the capacity to make monthly mortgage payments. But, find you are a little light on down payment or closing costs.

Explore the many options for down payment assistance or grants for first time home buyers.

There is more assistance out there than you think. And, instead of waiting years to fund your first home purchase, you can get in now.

If you would like to explore down payment assistance, call me and I will set you up with one of my preferred lender that specializes in loan programs and grants that allow you to take advantage of these programs.

Other Real Estate Resources

  • What are decorating trends going to be for 2022? Explore what homeowners are looking for next year with Karen Highland’s article stay ahead of the curve and look at the decorating trends for 2022.
  • Winter can be an opportune time to sell your house as well as providing some unique challenges. Paul Sian provides winter tips for selling your home.
  • Sometimes the biggest challenge to homeownership is finding the funds for a down payment and closing costs. Michelle Gibson covers how you may use your 401k to purchase a home.

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Is My Real Estate Agent Really Working for Me?

Understanding Real Estate AgencyWhen it come time to buy or sell a house, most people call a real estate agent to aid in their home sale or purchase. 

Whether you are buying or selling a home, understanding real estate agency is critical.  

Buying a home and looking at homes is fun.  Talking about the legal aspects is not.  Do yourself a big favor and decide on how your real estate agent is going to work  for you. 

The only type of real estate agent that works soley for you that protects your interest is a buyer’s agent!

Secondly, you can run into other agents along the way and is important you understand the relationship you have with each agent.

Real Estate Agency is at the core of every real estate transaction, but is also the most overlooked aspect of purchasing a home by buyers.  It is also what trips up home buyers the most and where critical mistakes are made by a homebuyer. 

Homebuyers in particularly ignore real estate agency and how “their” real estate agent is supposed to interact with them.  I use the term “their” loosely as the agent they are working with may not truly be “their” agent.  A real estate agent can ac in several capacities.

Home buyers, I encourage you to read this article on understanding real estate agency.  There are more options on how you work with an agent than you think.  I am going discuss how a Massachusetts Real Estate Agent can work for you. 

If you don’t know what anyone of them means you need to take the time to understand:

Selling Agent, Buyers Agent, Facilitator, Dual Agent, Designated Agency, Non Designated Agency

Note: agency laws vary from state to state, so check with your particular state,  though most states have  very similar agency laws to Massachusetts.  Wheather your a first-time homebuyer in Massachusetts, a move-up buyer, a downsizer, etc… using a buyer’s agent can save you a ton of aggravation.

Understanding Real Estate Agency

What Is Agency in Real Estate?

First and foremost Real Estate Agency is to protect the consumer.  It is at the crux of how an agent interacts with you. When you hear real estate agency you usually think about your local real estate office. 

But, the the term goes much deeper from a business sense.  Real Estate Agency is about a legal relationship that is formed.

Typically in the business world if some one is an agent, they have a fiduciary responsibility to a principal.  An agent is obligated to act on behalf and for the best interest of their principal.

So in the real estate realm, agency is a legal relationship formed between the agent (real estate agent) and the principal (home buyer or home seller).

Along with an agency relationship comes some basic fiduciary responsibilities an agent has to a client.

  1. Fiduciary Responsibility- A fiduciary responsibility is the highest standard of care.  Your needs, as the real estate client must come before anything else.
  2. Confidentiality-  Anything that is known about you or discussed with you is confidential.  Nothing can be disclosed without your explicit permission.
  3. Obedience-  Your agent must lawfully carry out your instructions.
  4. Accountability-  Your agent must always give you a complete accounting of your transaction.
  5. Loyalty-  Your agent must put you before a others, their own company, and their own beliefs.  They must do what is best for you.

So when you are in an agency relationship with an agent their responsibilities are much like a lawyers responsibility to you.  Realize just because you are talking to an agent an agency relationship is not formed.

A Real Estate Agents Obligation To Disclose Their Agency Relationship With You

A real estate agent is obligated, by law to disclose their agency relationship to you at the first face to face meeting to discuss a specific property. 

This disclosure is done through the MASSACHUSETTS MANDATORY LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE.  Every state in the country should have some mandatory disclosure on how you and your agent are working together.

The disclosure covers the different agency and non-agency relationships.  Their is a check box to pick the relationship and both agent and consumer sign.

If you call an agent about a property to schedule a showing, the first thing they must do is disclose the relationship to you upon meeting you at the property. 

Both the real estate agent and the real estate client must sign acknowledging the disclosure has been presented.  If a real estate agent does not present you with the agency disclosure , they are acting above the law and it is wrong!! 

Do you really want to work with them?  Where else will they short change you along the way if they are ignoring one of the basic real estate laws of informing you about agency relationships.

The one and only situation where the agency disclosure is not required is when you attend an open house.  Then a sign must be prominently displayed stating the agent is working for the seller.  This means the attending agent is most likely the listing agent and has a real estate agency relationship with the seller.

The sole job of the agent at the open house is to sell you the house for the price the seller wants.  Period.  They are not their to help you buy the house and guide you through the process to your benefit. They are there to get the best deal they can for the seller.

Of course they will be nice and appear helpful, they would love to sell their own listing to an unrepresented buyer and scoop a double commission.

Understanding Real Estate Agency- How Can Your Agent Work For You?

Here we are going to discuss the different agency and non-agency relationships in which an agent can work for you.  In most cases a seller contracts a sellers agent.  It has been the way it has been done for many many years.  But over the years a buyer has many choices.

Sellers Agent

When a seller engages a real estate agent to as a Sellers Agent there is an agency relationship formed.  The sellers agent owes the seller the basic fiduciary responsibilities spelled out above.  It is the seller’s agents job to give an opinion of value, help prepare the home, properly market the property, expose it to the most amount of buyers, secure an offer, help negotiate the offer, negotiate repairs after a home inspection and bring the transaction to a smooth closing all to the benefit of the seller…. not the buyer, not themselves, but the seller. 

Bear in mind there is one case where a sellers agent may not always act in the best interest of the seller and that is when it comes to property disclosure.  A real estate agent is bound by law to disclose any material defects in a home even if it goes against the sellers wishes.

Buyer’s Agent

A buyer can engage the services of an agent to act on their behalf as a buyer’s agent.  Again, when the agency relationship is formed the buyer’s agent owes the buyer the basic fiduciary responsibilities laid out above.  A buyer’s agent can offer a whole slew of services from helping to set expectations arrange financing on a home, provide tools to find a homes for sale, prepare and negotiate an offer, help arrange professionals like home inspectors attorney etc…, negotiate an home inspection issues and bring the transaction to a smooth closing to the sole benefit of the home buyer.

Facilitator

A facilitator is a non- agency relationship as the real estate agent works for neither the buyer or seller.  There job is to assist buyer and seller in putting an agreement together.  There duties are more of a ministerial nature rather than consultive.  A facilitator is bound to act honestly and fairly but has no loyalty and owes neither party confidentiality or even obedience.

Designated vs. Non Designated Agency (at the office level)

Designated Agency is a newer agency relationship that has been created.  It allows two real estate agents from the same office to each represent a seller or a buyer in the same transaction.  It is important to understand this agency relationship as it comes into play when one agent from the same office brings a buyer to a listing from another agent in the same office.   Note that the mandatory state disclosure discloses whether the agents firm is a designated office or a non-designated office.

In this case each agent can represent their client fully as a buyer’s agent or a seller’s agent.  At the end of the day the real estate broker of the designated office is a dual agent, but they rarely get involved with the buyer or seller so it is generally a non-issue. 

A non designated agency, it is implied that all agent of the firm work for the client.

Dual Agency

Dual Agency happens in two ways.  The first is if one agent is in an agency relationship with both the buyer and seller. Or, if two agents in a non-designated agency office represents a buyer and seller individually.  Dual agency must be disclosed to both buyer and seller prior to the offer being tendered. And, both parties must agree. 

When in a dual agency relationship an agent or agents cannot favor one party over another.  They must remain neutral.  A dual agent cannot satisfy all of their obligations to a party if the interest conflicts between buyer and seller.  For example an agent cannot give the either the buyer or seller opinion of value, recommend vendors, give negotiating advice, etc….

When a buyer and seller are in a dual agency situation they are giving up many services and rights that are available to then from a buyer or seller’s agent.

Don’t Assume A Real Estate Agent Works For You

Never, ever assume a real estate agent works for you with out having a disclosure signed.  Always make sure you understand the relationship the agent your speaking with has with you.  For example a home buyer can buy a home with any of these types of agency. 

Quite frankly so can a seller, though rare.  I have seen sellers list their home with facilitators, knowingly or not, I am not sure.

Why?  How you interact and what you tell your buyer’s agent will be very different than how you would interact and tell a seller’s agent or a facilitator.  Neither owes you confidentiality and can use information you have disclosed against you. 

Another situation is if you go directly to a sellers agent to buy a house with out the representation from a buyers agent, they cannot offer you many of the services a buyer’s agent can.

For example a seller’s agent cannot give you an opinion of value, they can only suggest and try to support the full list price.  While they must present your offer they cannot negotiate on your behalf as well.  They cannot provide you with preferred vendors or counsel you on the best way to negotiate.  You are on your own.

I cannot tell you how many times as a sellers agent buyers have revealed things to me, such as they LOVE the house and they HAVE to get a house under contract by a certain time.  As a seller’s agent if that buyer tenders an offer I have to disclose what the buyer said to me and it gives the seller a negotiating edge over the home buyer.

Understanding Real Estate Agency

Final Thoughts on Understanding Real Estate Agency

The agency relationship you have with “your agent” is so important and is often overlooked by many home buyers.  Why a home buyer would not want to be represented by an experienced buyers agent is beyond me.  There is so much to a real estate transaction home buyers don’t even know what they don’t know.

I have seen buyer’s go directly to the seller’s agent to buy a house.  They are not represented in any way by an agent.  Yet they will call the seller’s agent “their agent”!!  EEEK, if that is the case you are not getting it.

When you are selling a home it is usually a given your contracting with a seller’s agent.  But it important to understand that the agents showing your home most likely represent the buyer.  If you happen to run into the buyer and their agent as you are leaving or forever whatever reason you are not leaving for showings (which I don’t recommend), keep your mouth shut!  Do not volunteer information.  If you are asked a question direct them to ask all questions thru your seller’s agent. 

I will also give my opinion on dual agency here.  Don’t do it.  While dual agency is legal, I think it is unethical.  Can a lawyer act as a prosecutor and represent the defendant… no. 

So why should a real estate agent be able to represent a both a buyer and seller in the same transaction their interest lie opposite of each other.  In most cases dual agency is not worth it.  You are giving up so many rights as either a home seller or home buyer.   If you have ever heard it said…. you can’t serve two masters….  well this is the case with dual agency.

Slow down and down and make sure you understand real estate agency, don’t be so anxious to look at pretty houses without making a decided decision of how you want to work with an agent. How an agent works for you and their abilities can make or break you.  Real estate agency is where your whole home buying or selling process begins.  It can save you a ton of aggravation, time and maybe even money!

Other Resources on Real Estate Agents and Real Estate Agency:

Is My Real Estate Agent Really Working for Me- Understanding Real Estate Agency, was provided by Kevin Vitali of EXIT Group One Real Estate of Tewksbury MA. If you would like to sell or buy a home give me a call at 978-360-0422 and let’s get the process started.

Real Estate Services in the following areas: Northeast Massachusetts, Merrimack Valley, North Shore and Metrowest. Including the following communities and the surrounding area- Amesbury, Andover, Billerica, Burlington, Chelmsford, Dracut, Groveland, Haverhill, Lowell, Melrose, Merrimac, Methuen, Middleton, North Andover, North Reading, Reading, Stoneham, Tewksbury, Tyngsborough, Wakefield, Wilmington, Westford

CONTACT ME

Kevin Vitali- Massachusetts Realtor Serving Essex County and Northern Middlesex County Massachusetts

KEVIN VITALI

978-360-0422
kevin@kevinvitali.com

Kevin Vitali- Massachusetts REALTOR
Real Broker MA, LLC
90 Canal Street
Boston, MA 02114
cell phone: (978) 360-0422
office phone: (855) 450-0442

My Office

Massachusetts Real Estate

 

Real Estate Services in the following areas:
Northeast Massachusetts, Merrimack Valley, North Shore and Metrowest including the following communities and the surrounding area including
Amesbury, Andover, Billerica, Burlington, Chelmsford, Dracut. Georgetown, Groveland, Haverhill, Lawrence, Littleton, Lowell, Melrose, Merrimac, Methuen, Middleton, Newbury, Newburyport, North Andover, North Reading, Reading, Salisbury, Stoneham, Tewksbury, Tyngsborough, Wakefield, West Newbury, Westford

Disclaimer

No information on this website is to be construed as legal advice.  The information is either generalized or state-specific. If you are seeking information for legal purposes please consult an attorney.