In Massachusetts, the new home-buyers and flippers created plenty of job opportunities for home renovators, landscapers, roofing specialists, and real estate brokers. These job opportunities had a ripple effect in the entire economy of Massachusetts. As time went by, the economy began to recover, and the residents had the disposable income to invest. The people were able to afford high rents and home prices, meaning that the home prices began to rise too.
The current plight of the Massachusetts housing market
Today, the housing market is thriving. Real estate companies are offering a vast array of homes at affordable prices. There are lots of Fortune 500 companies in Massachusetts that hire thousands of workers. Since the economy is also thriving, Massachusetts has become one of the favorite states to live or invest in real estate. Whether you are looking to buy property and provide shelter for your family or flip to get a profit, there are plenty of opportunities to do so. A key contributor to the tremendous growth is the banking sector. The banks are offering the mortgages at a low-interest rate for the buyers who qualify.
Since the rate of employment is quite high, many residents can qualify for mortgages whenever they want to buy the houses. Since the home prices are rising on a daily basis, the prospective homeowners are always on the rush when it comes to hunting for the homes. However, real estate experts are keen to avoid another financial catastrophe. The real estate moguls claim that using a mortgage attorney is imperative if you are looking to make the home-buying process a success. Buying a home is a key step in your life, and the best way to protect yourself from the pitfalls is to adhere to the local mortgage laws.
Massachusetts mortgage laws
The State of Massachusetts outlines the mortgage laws as follows:
- All mortgage lenders must obtain the requisite licenses and certifications to foster the adherence to the ethics as stipulated in the state laws
- The Homeowner’s Protection Act safeguards the homeowners from foreclosures if they have paid up to 80% of the loan
- The Massachusetts mortgage laws require that lenders exercise full disclosures on the various aspects of the transactions. For example, the interest on a 20-year mortgage should not exceed 3.5% of the loan amount. By disclosing such details in advance, a borrower can make a decision by comparing the terms and conditions of various lending institutions
- The mortgage providers must comply with the Truth in Lending Act that stipulates that the lender must disclose the pertinent information on the loan amount, interest rate, payable amount, repayment period, and penalties for late payments
- Borrowers are prohibited from defaulting on the loans
Key cities to invest in Massachusetts:
The following are the key cities to invest in Massachusetts:
Boston has the largest number of affordable homes since it was hit hard by the recession. As such, most of the properties are held by banks who are looking to recover their money. While the investors are looking for such properties, it seems that most people are avoiding the foreclosures, especially since the homes are in need of repair. Besides hiring a mortgage attorney, buyers might also have to engage a home inspector.
Home prices have continued to drop, although Cambridge is starting to show some signs of recovery. A new breed of real estate investors and flippers have given this city a glimmer of hope.
- New Bedford and Fall River
These cities have been struggling to deal with the tough times, especially in the wake of declining home sales and values. There have been some improvements at various times of the year, but this region is yet to catch up with Boston. The banks are looking to drop the mortgage rates even further to encourage the foreign investors to bail this city out.
Springfield has recorded fewer home sales that any other city in Massachusetts. One of the reasons why the sales have been poor is that the prices never declined during the recession.
Worcester has defied the odds since the high property sales have been a key exception to the rule. While the state has been languishing in the declining home prices, Worcester homes have been rising steadily.