So, you’ve decided you might actually buy a place in Boston. Nice. Now comes the part everyone loves to hate-figuring out your mortgage. It’s not glamorous. You don’t get HGTV music playing in the background. But trust me, this is the part that makes or breaks the deal.The problem is, half the stuff you read online sounds like it was written by a bank’s PR team. Let’s skip that. I’m going to walk you through it like you’re a friend who just texted me: “Hey, what’s the deal with mortgages around here?”

Step One: How the Process Works Here (And Why It Moves Fast)

Boston isn’t the kind of market where you “think about it for a few weeks.” You see a condo in Southie, you wait two weeks, and it’s gone. The mortgage process has to keep up with that pace.

Here’s the real-world version:

• Pre-qualify: This is basically a friendly estimate from a lender. It’s like a dress rehearsal.
• Pre-approval: This is the one sellers actually care about. The lender digs into your finances, runs your credit, and says, “Yep, we’ll lend you up to X.”
• House hunt: You go look at places. You’ll probably send 18 Zillow links to your agent at midnight.
• Apply: Found the one? Now it’s official mortgage time.
• Underwriting: Lender’s bean counters check every line of your file.
• Closing: You sign a mountain of paperwork, hand over a chunk of cash, and get the keys.

Boston reality check: If you’re not pre-approved, you’re basically window shopping. Sellers want to know you can actually close.

The Mortgage Menu: What’s Out There

There’s more than one way to finance a home, and no-your uncle’s “one mortgage fits all” advice doesn’t hold up.

• Fixed-rate mortgage: Boring in a good way. Your rate stays the same forever. You can plan your budget without surprises. If you’re staying put long term, this one’s solid.
• Adjustable-rate mortgage (ARM): Starts low, changes later. Might be worth it if you know you’re moving in a few years. If not, you’re gambling.
• FHA loan: A lifeline for folks with less-than-perfect credit or smaller down payments. Less picky about your financial history, but the house has to meet certain condition rules.
• VA loan: For veterans and active military. Zero down payment, no PMI. If you qualify, it’s a no-brainer.
• Jumbo loan: For when the home price blows past the “normal” limit (which in Boston, happens more than you think). Bigger loan = stricter rules.

Credit Scores: The Invisible Gatekeeper

You know that number you don’t really think about until you need a loan? Yeah, lenders think about it a lot.

• A score in the mid-700s or higher can land you the lowest rates.
• Below that? Still possible to get a loan, but you’ll probably pay more.
• Even a 20-point boost can mean thousands saved over time.

If you’re not there yet: pay bills on time, lower your credit card balances, and for the love of Fenway, don’t open a bunch of new accounts before you apply.

Down Payments in Boston: Let’s Be Honest

This is where reality sets in.

• Conventional loans: Usually 5-20% down.
• FHA: 3.5% down.
• VA: 0% down.

Sounds great, right? Then you look at prices. Even “small” down payments in Boston can feel huge. Five percent on a $700k condo? That’s $35,000. And that’s before we talk about…

Closing Costs: The Part Nobody Wants to Think About

Picture this: You saved for your down payment, you’re ready to go, and then-boom-closing costs show up.

In Boston, they usually run 2-5% of the purchase price. That covers lender fees, title stuff, appraisals, and prepaid property taxes. Sometimes you can negotiate for the seller to chip in. Most of the time in this market? You’re covering it. Plan ahead.

Mortgage Rates: The Moving Target

I’m not giving you today’s rate because it’ll change by the time you read this. What matters is the trend-and the fact that even a quarter of a percent difference can bump your monthly payment up or down by a couple hundred bucks.

Moral of the story? Shop around. And not just online. Call a few local lenders who actually know Boston.

Picking the Right Mortgage: The Gut Check

Forget the “perfect” mortgage. You’re looking for the one that works for you.

Ask:

• How long am I really staying in this place?
• Am I okay with a little uncertainty if it means a lower starting rate?
• Do I have enough to handle both the down payment and the closing costs?

In this market, having a lender who can move fast is almost as important as the rate itself.

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The Bottom Line

Mortgages aren’t exciting, but they’re the backbone of your home purchase. Boston’s market rewards people who do the homework up front.You don’t need to be an expert - that’s what your lender’s for - but you do need to know the basics so you can make smart calls along the way. Because when the right place pops up, you’ll want to be ready to grab it before someone else does.

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Paolo Jimenez 

Real Estate Advisor
857-424-0141 
Email: [email protected]
Website: paolojrealestate.com

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Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Mortgage rates, loan terms, and eligibility requirements may change over time. Always consult with a licensed mortgage professional or financial advisor before making any home financing decisions.