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Questions about down payment and closing costs?

My boyfriend and I are looking to buy a home this summer. By June, we will have about $12,000 saved. My question is, will $12,000 be enough to cover a downpayment and closing costs? I’ve read that the MA no MI loan only requires a 3% downpayment so that’s what we are planning on doing. My worry is the closing costs. Is that something that can be negotiated into our offer and if so, how likely is it that the sellers would be willing to cover some/ all that? I should also mention that my dad is a real estate attorney, so I wouldn’t have to pay for that part…but, I know that the lawyer is just one of many expenses I know all sellers are different.

Answer:
MA Housing allows a 3% down with income limits up to $123k for a 1-2 person household. So you seem to possibly have enough for that, but closing costs are not guaranteed to be paid by the seller. Its a negotiable term. Closing costs (inc title insurance) and escrows could be about $6-7k. With your dad doing the closing, that figure would be closer to $4-5k. You also need to make sure any lender you work with will allow your father to do the closing. Technically, the attorney represents the ban/lender at closing. Banks generally pick the closing attorney. Lenders and Brokers will generally allow you to have a say in this. If a client comes to us with their own attorney, we will gladly have them close the loan.

Its best to keep saving and figure out a reasonable home price range to shop in. Even though you qualify for a $400k purchase, you may want to keep well under that so that you have some quality of life once you purchase and move in.

Owning your home is the most amazing experience, but do so when you are ready.  There is nothing worse than losing a home because you were not quite ready to own.

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