Prepare for your home-buying journey and secure your dream property
with these streamlined, step-by-step first-time home buyer guides.
Buying your first home in Massachusetts is a major financial milestone, but with median home prices recently reaching $667,628, the market can feel daunting. However, you don’t have to navigate this process alone. Understanding the local landscape is your first step toward building equity and finding a place to call your own.
Whether you are just beginning to save or you are ready to start touring properties, this guide breaks down the essential steps to homeownership. From leveraging state-specific assistance programs to securing a mortgage that fits your budget, we’ll walk you through the process so you can approach the market with confidence and avoid common pitfalls along the way.
You might assume that to qualify as a first-time homebuyer, you must have never owned a home before. In reality, the definition is much broader.
Federal and state housing guidelines expand this group to include many different buyers. The official definition from the U.S. Department of Housing and Urban Development includes anyone who hasn’t owned a principal residence in the three years prior to closing on a new one, as well as those who only owned property with a former spouse. You may also meet the criteria if you only owned a primary residence that was not attached to a permanent foundation, such as certain manufactured homes.
These criteria offer first-time homebuyer advantages to people who have owned property in the past but have been renting recently, or those navigating major life changes.
Buying a home for the first time offers specific advantages for Massachusetts residents. State and local programs are designed to lower the typical barriers to homeownership, helping people with more modest incomes manage high property prices.
Massachusetts first-time homebuyer assistance programs provide fixed-rate, low-interest mortgages that require only a 3% down payment. Other programs in the state offer lower standard credit score requirements for qualified applicants and cash grants or forgivable loans to cover upfront expenses. These first-time homebuyer benefits, especially no-interest down payment assistance of up to $30,000, make homeownership achievable even if you’re still building your savings.
Eligibility depends on several factors, including your household income, the location of the property, and your credit history. Many of these benefits target specific neighborhoods or communities with lower economic growth. It’s a good idea to ask your mortgage loan officer about the available down payment assistance grants and loans early in the process.
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Buying your first home can feel like a complex process, but it doesn’t have to be overwhelming. Using this first-time homebuyer checklist can help you stay organized and stress-free as you navigate the journey from your initial budget to closing day.
Before you start browsing listings online, take a moment to evaluate your financial health — specifically the numbers lenders look at when deciding if you qualify for a home loan. You’ll want to make sure your budget covers the down payment, mortgage, property taxes, homeowners insurance, and ongoing maintenance costs.
Your debt-to-income ratio (DTI) — your monthly debt payments compared to your monthly gross income — is an important factor for lenders. The maximum allowable ratio is generally 50% for a government-backed loan, while conventional loans require a stricter debt-to-income ratio below 43%.
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Establishing a realistic budget is the best way to narrow your search to properties you can truly afford. A home affordability calculator can help you set a target, keeping in mind your ideal mortgage payment, taxes, HOA dues, and regular maintenance. Don’t forget to factor in hidden costs like moving expenses, new furniture, and future landscaping. If you plan to move out of state, do some research on the local cost of living and current interest rates.
Homebuyers often save 20% of the property’s purchase price as a down payment to avoid paying private mortgage insurance on conventional loans. A higher down payment also helps you secure a lower interest rate from lenders. The minimum down payment for a conventional mortgage can be as low as 3%. Certain government loans do not require any down payment from eligible borrowers. A mortgage down payment calculator can come in handy when you’re determining your upfront costs.
There isn’t a one-size-fits-all mortgage, so understanding the different types of mortgage loans available is key to selecting the financing that fits your specific situation.
Shopping around for a mortgage lender is a critical step in your home-buying journey. Because terms vary significantly between institutions, comparing lenders can save you thousands of dollars.
Make sure you understand the difference between the interest rate and the annual percentage rate (APR). The APR includes the baseline interest rate plus extra costs such as lender fees and discount points, while the interest rate is just the cost of borrowing principal. The APR is a more accurate measure of the total cost of the loan.
Additionally, comparing lender timelines and customer service reviews helps you avoid delays and ensures a smooth transaction.
Understanding the difference between prequalification vs. preapproval is one of the smartest moves you can make as a first-time buyer. Lenders use two distinct evaluations to estimate your borrowing capacity, and knowing which is which helps you stay prepared.
Prequalification is an informal estimate of your loan options based on unverified financial data you share. You can get prequalified with several lenders as you shop around.
During the preapproval process, the lender verifies your financial documents and credit history. You’ll need to provide tax returns from the past two years, recent pay stubs, and bank statements for this review.
Preapproval shows sellers you’re a serious shopper with verified backing from a financial institution. It also gives you a clear understanding of your price range, preventing wasted time on properties you can’t afford. Sellers in competitive markets may reject offers from buyers who lack a preapproval letter.
Working with a licensed real estate agent is one of the best ways to navigate the housing market with confidence. An agent can tailor your search so you aren’t wasting time on properties that don’t fit your needs, while also handling the complex paperwork involved in making an offer. These professionals have access to new listings that don’t appear on public websites yet. They can guide you through the intricacies of contract negotiations.
Industry norms have changed recently, so it’s important to read up on how an agent gets paid. Discussing compensation upfront is a good way to move forward while making sure everybody is on the same page.
With your preapproval letter in hand and an agent by your side, it’s time to start your property search. Finding the right home requires more than just looking at photos — you’ll need to research neighborhoods, weigh school districts against your commute, and look at local market trends.
It’s also important to be aware of your legal rights regarding housing discrimination. Federal laws prohibit discrimination based on race, religion, sex, national origin, disability, or family status. Real estate agents are obliged to show you all available homes in your price range without bias. Documenting your conversations and taking screenshots of listings help protect you if you suspect unfair treatment.
Take a look at the best affordable places in the U.S. series for more first-time homebuyer tips.
When you’re ready to move forward on a property, your real estate agent will help you draft a formal offer letter for the seller. This letter outlines your proposed purchase price, a response timeline, and necessary contingencies — clauses designed to protect your deposit if something goes wrong.
The seller can accept your offer, reject it, or submit a counteroffer with revised terms. If the seller accepts your offer, you proceed to the contract stage of the transaction. You’ll then submit an earnest money deposit to show your good-faith commitment, which is typically 1%-3% of the purchase price. This deposit sits in an escrow account until the sale is finalized at closing.
A professional home inspection is your best defense against expensive surprises. This independent evaluation of the roof, plumbing, electrical, and foundation gives you peace of mind that the home is in the condition you expect before you finalize the deal.
The cost usually ranges between $300 and $500, and it’s out of pocket. It’s a good idea to shop around for quotes from certified inspectors in your area to find a fair deal.
Review your lender’s requirements to ensure the inspection covers all necessary items. If you can, attend the inspection in person to ask questions about potential defects. If the inspection reveals significant problems, you can decide whether to finalize the contract or request repairs or credits from the seller.
Lenders require an appraisal to verify the home’s current market value before issuing a mortgage. While an inspection focuses on the physical condition of the house, the appraisal focuses on its dollar value, ensuring you aren’t paying more than the home is worth.
The appraiser is selected randomly to ensure objectivity and will likely visit the property. They will aggregate an array of information — including the floor plan, amenities, property size, and the area’s real estate trends — to assign a dollar value to the home. The homebuyer simply needs to schedule the appointment or have their agent coordinate the time. The homebuyer pays the cost of the appraisal, which typically ranges from $300 to $600.
Closing day is the finish line where ownership officially transfers from the seller to you. You’ll be signing a mountain of legal documents, providing proof of homeowners insurance, and reviewing your final loan details — but once the deed is recorded, you finally get the keys.
You’ll receive a final closing disclosure about three days before the meeting to review your loan details, and you’ll want to conduct a final walk-through of the house to verify its condition before signing. The escrow agent and title company coordinate the legal transfer of the deed and record the transaction with the county.
An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Moving into your first home is a huge milestone, but it can also be a chaotic transition. Minimizing stress starts with an organized plan for your move-in day and the weeks that follow.
Purchasing your first home in Massachusetts requires careful budgeting and knowledge of your mortgage options. Following a structured plan helps you find an affordable property and secure reliable financing. State programs and expert real estate agents assist you throughout this journey to support your success. With proper preparation, you can confidently navigate the market and find a home that fits your budget.
To buy a house, you need enough money to cover your down payment, which is typically 3%-20% of the purchase price, and closing costs, which are typically 2%-5% of the total mortgage amount. Remember to ensure that your monthly mortgage payment, property taxes, home insurance, and any homeowners association dues fit your ongoing budget. Saving a larger down payment reduces your monthly obligations, but minimum down payment options can be as low as 3% for conventional loans.
The credit score needed depends on the loan type that you get. Standard conventional loans typically require a minimum credit score of 600 for approval. Required credit scores for government-backed loans can go as low as 500, but that depends on the government agency, down payments, and qualification factors.
It’s important to know that the listing price of a home is just the beginning of your expenses. You’ll want to factor in closing costs, property taxes, home insurance, maintenance, as well as consider that your credit score directly impacts your interest rate, which, in turn, affects the total cost of your home. Working closely with an experienced real estate agent ensures your entire home-buying process goes smoothly from start to finish.
The 30/30/3 rule is a guideline that suggests spending no more than 30% of your gross income on housing payments, including insurance and taxes. It also recommends having 30% of the home’s value saved in cash as a down payment and emergency buffer. Finally, the home price should not exceed three times your annual gross income.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
SOHL-Q226-043Take the first steps to homeownership today. Get prequalified for an FHA loan online.
