Home Buying Guide: Massachusetts
When making an offer to purchase a home in Massachusetts there will be many factors to consider. An offer is a crucial step in the making of any contract. An offer is also legally binding. It is advisable to contact an attorney at this stage in the home buying process to ensure that the offer is in agreement with your expectations. Remember that you will be held to performance on the offer unless some condition outlined in the offer has not been met.
Typical contingencies or conditions in an offer to purchase a home include a clause stating that the home buyer’s offer is contingent on the ability of the home buyer to obtain a mortgage or to conduct a home inspection. As the buyer you will want to follow through with this contract unless the contingency has not been met; for example, you were unable after a good faith attempt to obtain financing for the home. In such a case you will likely receive your full deposit back (the deposit that you will have made when making the offer). However, if the contingency dates listed in the offer have passed you may not be entitled to receive your deposit. Further, beware, because a cause of action for breach of contract might also exist if the buyer does not follow through with the offer where some other reason (not a contingency having not been met) for failing to follow through with the offer has occurred.
Putting Pen to Paper
Now that you’ve found the home you want and decided on the type of mortgage best suited for you in your individual circumstances, you are ready to begin the mortgage loan application. You may be presented with the option to lock in an interest rate during the mortgage loan application process or to allow the interest rate to float.
Again, the choice to lock the interest rate in or not is truly a matter of personal preference and risk acceptance or aversion. Some people are perfectly comfortable with allowing a few days or so for time to pass, taking an educated or not-so-educated guess at which way market rates will fluctuate. Others will want to ensure they get the rate that exists on the day that the choice to lock in the interest rate is offered to them.
Once you’ve made the decision as to lock in a rate or not, you’re on your way to step 6 – Home Inspection in Massachusetts.
DISCLAIMER:
The information provided in the pages and posts of this website are for general informational purposes only. The information presented on this site is not legal advice, and no attorney-client relationship is formed by the use of this site.
