Buying your first home in Massachusetts is one of the most exciting — and most complex — financial decisions you'll ever make. The Bay State has one of the most competitive real estate markets in the country, with median home prices well above the national average and inventory that moves fast.
The buyers who succeed in this market aren't necessarily the ones with the most money. They're the ones who are prepared. That means having your financing in order before you start touring homes, understanding the Massachusetts-specific programs available to you, and knowing exactly what to expect at every stage of the process.
This checklist walks you through every step — from the moment you decide to buy to the day you get your keys.
Phase 1: Get Your Finances Ready (3–6 Months Before)
The foundation of a successful home purchase is financial preparation. Start here, even if you're not planning to buy for several months.
- Check your credit reports at AnnualCreditReport.com and dispute any errors
- Know your credit score — most conventional loans require 620+; FHA loans allow as low as 580
- Pay down credit card balances to below 30% of your credit limit
- Avoid opening new credit accounts or making large purchases on credit
- Calculate your debt-to-income ratio (DTI) — most lenders want total debt payments below 43% of gross income
- Start saving for a down payment and closing costs (closing costs in MA typically run 2–5% of the purchase price)
- Build an emergency fund — lenders want to see reserves after closing
Massachusetts closing costs are on the higher end nationally. Budget for attorney fees (MA requires a real estate attorney at closing), title insurance, recording fees, and prepaid items like homeowner's insurance and property tax escrow.
Phase 2: Explore Massachusetts First-Time Buyer Programs
Massachusetts offers several programs specifically designed to help first-time buyers. These can significantly reduce your upfront costs or help you qualify for a larger loan.
MassHousing is the state's affordable housing finance agency and offers low-interest mortgage loans with down payment assistance for first-time buyers. Their MI Plus program even includes mortgage payment protection if you lose your job.
The Massachusetts Housing Partnership (MHP) ONE Mortgage program offers a 30-year fixed-rate loan with no private mortgage insurance (PMI) — a significant savings for buyers who can't put 20% down. Income limits apply.
The Down Payment Assistance (DPA) program through MassHousing provides up to $30,000 in down payment assistance for eligible buyers in most Massachusetts communities, and up to $50,000 in certain Gateway Cities like Springfield, Worcester, and Lowell.
FHA loans are also popular with Massachusetts first-time buyers because of their low 3.5% down payment requirement and flexible credit guidelines. Our advisors can help you compare all available options side by side.
Phase 3: Get Pre-Approved (Before You Start Shopping)
In Massachusetts's competitive market, a pre-approval letter isn't optional — it's a requirement. Sellers won't take your offer seriously without one, and in multiple-offer situations, a strong pre-approval can be the deciding factor.
- Gather your documents: W-2s and tax returns (2 years), pay stubs (30 days), bank statements (2–3 months), and photo ID
- If self-employed: provide 2 years of business tax returns and a year-to-date profit and loss statement
- Contact a licensed Massachusetts mortgage advisor to review your full financial picture
- Get pre-approved — not just pre-qualified. Pre-approval involves a full credit check and document review; pre-qualification is just an estimate
- Understand your pre-approval amount and your comfortable monthly payment — they're not always the same
- Ask about rate lock options if you're in a rising-rate environment
A pre-approval from All East Mortgage Advisors is a thorough review of your finances — not a quick online estimate. We'll tell you exactly what you qualify for and help you understand your options before you make an offer.
Phase 4: Find Your Home and Make an Offer
With your pre-approval in hand, you're ready to work with a buyer's agent and start touring homes. In Massachusetts, the purchase process has a few unique steps to know about.
- Work with a licensed Massachusetts buyer's agent — their commission is typically paid by the seller
- When your offer is accepted, you'll sign a Purchase and Sale Agreement (P&S) — a legally binding contract unique to Massachusetts
- A home inspection is strongly recommended — budget $400–$700 for a standard inspection
- Your lender will order an appraisal to confirm the home's value supports the loan amount
- Notify your mortgage advisor immediately when your offer is accepted so they can begin the formal loan process
- Avoid any major financial changes between offer acceptance and closing — no new credit, no large deposits, no job changes
Massachusetts law requires a real estate attorney to conduct the closing. Your attorney will review the title, prepare closing documents, and ensure the transaction is legally sound. Budget $800–$1,500 for attorney fees.
Start Your Massachusetts Home Purchase the Right Way
The Massachusetts market moves fast. The buyers who win are the ones who are prepared — with financing in place, a clear budget, and a team they trust.
At All East Mortgage Advisors, we specialize in helping first-time buyers navigate the Massachusetts market. We'll walk you through every program you qualify for, get you pre-approved quickly, and stay with you all the way to closing.
Serving Massachusetts, New Hampshire, and Florida
NMLS Licensed. Equal Housing Opportunity.
This article is for informational purposes only and does not constitute financial or legal advice. Program availability and terms are subject to change. Consult with a licensed mortgage advisor for guidance specific to your situation.