Home Buying Guide Massachusetts
The Massachusetts Purchase and Sale Agreement
As a part of the home buying process, a home buyer in Massachusetts will sign a contract for the purchase and sale of that home. The contract signed prior to closing is known as the purchase and sale agreement or P&S. Think of the P&S as a contract, because it is. The purchase and sale agreement is an opportunity for the seller and home buyer to put all of the requirements that each side to the contract must honor. Because breach of contract is a serious matter, it is important to involve an attorney with this part of the home buying process to ensure that you understand your own obligations and those of the seller under the contract.
Finalizing the Home Mortgage
At this final stage of the home buying process, the home buyer is in a kind of twilight where the excitement of the end goal (moving into your dream home) can overshadow the minute but extremely important details. One detail often lost on home buyers at this stage is to make sure that the lender has all the information required and requested of the home buyer so that the lender can send the loan off to the underwriters for final approval. Lenders will need tax returns, pay stubs for at least two pay periods, statements for any bank accounts, retirement accounts or other assets, etc. It is imperative that the home buyer verify that the lender has received all of these required documents along with any required consent forms as a failure to follow up on either party’s part at this stage could result in the home mortgage not being approved timely or not at all.
Home Mortgage Disclosures
Also, at the end of this home buying process the buyer will receive disclosures from the lender. These disclosures exist to inform the home buyer as to their rights under Massachusetts law. Home buyers are, among other things, entitled to a loan estimate which will inform the buyer as to the interest rate and other details involving the closing costs charged to the buyer. The buyer will also receive a loan estimate disclosure at this time which can be helpful in comparing the current mortgage loan to other mortgage loan offers.
You’re Clear to Close
The “clear to close” message is sent to buyers from the home mortgage lender as a means of communicating that funds are ready to be wired for closing on the home. Your attorney, the seller’s attorney, and the lender’s agent will have already or will presently determine a closing date (usually noted on the purchase and sale agreement). On the closing date the buyer and seller are present to sign the final set of documents.
See our “Home Buying Guide” for more information.
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