First-Time Homebuyer Guide for Massachusetts (2025)

October 19, 2025 • 8 min

Buying your first home in Massachusetts is an exciting milestone, but it can also feel overwhelming. This comprehensive guide walks you through every step of the process, from getting pre-approved to closing day.

Step 1: Check Your Credit and Finances

Before house hunting, review your credit score and overall financial health. In Massachusetts, you'll typically need a credit score of 620+ for conventional loans or 580+ for FHA loans. Use our affordability calculator to determine how much house you can afford.

Key Financial Metrics

  • Credit Score: Aim for 740+ for best rates
  • Debt-to-Income Ratio: Keep below 43% (use our DTI calculator)
  • Down Payment: 3-20% of home price
  • Emergency Fund: 3-6 months of expenses

Step 2: Get Pre-Approved

Pre-approval is crucial in Massachusetts' competitive market. It shows sellers you're serious and can actually afford the home. Compare rates from multiple lenders - check our Massachusetts credit union rates to find competitive offers.

Step 3: Massachusetts First-Time Homebuyer Programs

Massachusetts offers several programs to help first-time buyers:

  • MassHousing: Down payment assistance and competitive rates
  • ONE Mortgage: Low down payment options (3%)
  • FHA Loans: 3.5% down payment, lower credit requirements
  • USDA Loans: Zero down payment for rural areas
  • VA Loans: Zero down for veterans

Step 4: Find a Real Estate Agent

Choose an agent who knows your target neighborhoods in Massachusetts. A good agent will help you navigate bidding wars, inspections, and negotiations.

Step 5: House Hunting

Massachusetts median home price varies widely by region - from $400,000 in some areas to over $800,000 in greater Boston. Focus on:

  • Location and commute
  • School districts (if applicable)
  • Property taxes (Massachusetts averages $5,000-$8,000/year)
  • Condition of the home
  • Potential for appreciation

Step 6: Make an Offer

In Massachusetts' competitive market, you may need to offer above asking price. Your agent will help you determine a competitive offer based on comparable sales.

Step 7: Home Inspection

Massachusetts law doesn't require a home inspection, but it's highly recommended. Budget $400-$600 for a thorough inspection. Also consider:

  • Radon testing (common in MA)
  • Septic inspection (for properties not on city sewer)
  • Well water testing (if applicable)

Step 8: Closing Costs in Massachusetts

Expect closing costs of 2-5% of the purchase price. Use our closing cost calculator for estimates. Typical MA closing costs include:

  • Attorney fees: $1,000-$2,000 (required in MA)
  • Title insurance: 0.4% of purchase price
  • Recording fees: $200-$400
  • Appraisal: $400-$600
  • Loan origination: 0.5-1% of loan amount

Step 9: Final Walkthrough

Schedule a final walkthrough 24-48 hours before closing to ensure the property is in the agreed-upon condition.

Step 10: Closing Day

You'll sign the final paperwork, pay closing costs, and receive the keys to your new home! In Massachusetts, closings typically occur at the attorney's office.

After Closing: First-Time Homeowner Tips

  • File for Homestead Declaration (protects $500,000 of home equity)
  • Budget for ongoing costs (utilities, maintenance, insurance)
  • Keep an emergency fund for repairs
  • Consider energy efficiency upgrades (Mass Save rebates available)

Resources

Ready to get started? Use our free calculators to plan your purchase:

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