Institution for savings
It’s smart to check out mortgage financing in the community where you want to buy
A community bank is essentially like other local businesses—it’s based on relationships.
from home. And that’s probably not going away post-COVID-19, as companies realize the convenience and savings of reducing office space and overhead expenses. Untethered from city high-rises, workers and their families are starting to span out.
During the second quarter of 2020, Realtor.com found that more than half of its property searches from city residents in the country’s 100 largest metro areas were for homes in the suburbs. In large part, longtime city dwellers are leaving urban life for cities like Newburyport, Amesbury, Salisbury and Ipswich in search of better schools, safer neighborhoods, family-owned businesses, and the general comfort of a more tight-knit community.
And many of these newcomers are also discovering the benefits of financing their new homes with local community banks.
Institution for Savings has been part of communities in and around Newburyport since 1820. They are committed to the financial wellbeing and security of their neighbors because they want to see their community succeed and thrive. And because they are a mutual savings bank not focused on mere profit, they can better serve their customers by providing no-fee checking, more lending flexibility and more competitive interest rates than regional or national banks.
Community banks also tend give back more to their cities and towns through charitable giving, scholarships for local students, and sponsorship of local youth leagues and other events.
Sponsored by
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Institution for Savings gave more than a million dollars last year toward everything from safe and affordable housing to youth education programs to organizations that promote public health and human services.
snacks to senior centers, deliver lunch to first responders, and purchase and deliver supplies to local schools and shelters. And they’ve doubled down on that commitment during the pandemic, donating money and time to local COVID-related causes.
Now that working remotely has enabled us to live in the places that best suit us, it’s important to invest in those communities. Keeping your money local, whether its buying groceries at a mom-and-pop market or setting up your mortgage with your corner community bank, makes our hometowns better places to live, for us and our neighbors.
For more information, visit https://www.institutionforsavings.com/.
ow, more than ever, people are choosing to buy a house where they want to live instead of closer to where they work. The ongoing pandemic has only accelerated what was already fast becoming the norm of businesses allowing employees to work remotely
A community bank is essentially like other local businesses—it’s based on relationships. Community bank employees typically live locally and are neighbors who can relate the needs of their customers. And unlike many counterparts at national institutions, community bankers can take the time to sit down, listen and come to understand their customers’ specific needs—whether a pre-qualified letter to buy that new home or a longer term for a lower monthly rate.
A First-Time Home Buyer's Checklist
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With interest rates at historic lows and people spending more time at home than ever, this is the right time to buy. With a market this hot, you’ll want to be prepared from the get-go. Here’s a first-time buyer’s checklist to all things homebuying.
A First-Time Home Buyer's Checklist
How Much Can I Afford?
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Step one of successful homebuying is to ground your search in reality. Know what you may afford to spend before you set your heart on something out of your price range. Be realistic, but allow yourself a bit of wiggle-room. As always, it is important to read everything carefully and seek the advice of a legal professional if you don’t understand something.
Calculating mortgage payments is a great place to start. Many companies offer online mortgage payment calculators. To use these efficiently, you’ll need to know your yearly income, monthly bills (insurance, utilities), debt amount (credit cards, school loans, auto, etc.), and the amount of cash you’ve saved to put down as a deposit (generally 3–20% of the home price depending on the type of mortgage you qualify for, plus closing costs). You’ll also need to know your credit score.
A First-Time Home Buyer's Checklist
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Pre-Qualify
The next step is to pre-qualify for a home loan. In today’s market, sellers receive multiple offers, so it’s crucial to have your finances in order before you make an offer.
Pre-qualifying means a lender has reviewed your finances and offered you a conditional loan amount. While it’s tempting to go through a large national bank, first-time buyers can improve their chances of success by financing through a community bank in the area in which they plan to buy. Community banks are built on relationships and provide a level of customer service you won’t find from a big lender. Plus, community lenders offer highly competitive rates and typically are willing to work with first-time buyers to provide the best possible loan.
To pre-qualify, you’ll need proof of income, assets, and employment, as well as personal identification.
A First-Time Home Buyer's Checklist
Find a Realtor/Start
Your Search
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When home listings online are plentiful and easily accessed, it’s tempting to launch your home search right away concurrent with the other steps. However, most first-time buyers benefit from using a real estate agent. Having a real estate agent represent you as a buyer has advantages with no downside (the seller pays for your real estate agent). An experienced real estate agent who works within the community in which you are looking to buy can guide you through what can be an intimidating process. They’ll know the best areas that fit your needs and often have inside information on homes that may not yet have reached your Zillow feed.
Finding a good realtor is often as easy as asking a friend who’s already bought a home. If you’re moving to somewhere new, look at online reviews. Don’t be afraid to meet with a couple of potential agents and see if you click. Agents love meeting prospective buyers!
A First-Time Home Buyer's Checklist
Visit Open Houses
and Tour Homes
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As fun and informative as scrolling through online listings can be, it’s nothing compared to seeing a home in person. Often your real estate agent will arrange private viewings with the seller’s agent or accompany you to a listing’s open house. You can also visit open houses on your own. Seeing a home in person allows you to assess the vibe, the lighting, the space—ephemeral qualities that are tougher to communicate through photos.
When you see a house you like, don’t let any emotional attachment prevent you from asking tough questions. Think critically, bring a tape measure to size up rooms, do your due diligence. Remember, you’re looking for a home that best fits your needs. Compromises may be needed. There are many houses to see—you’ll likely visit at least 10 to 20 before you find The One—so don’t fret if it takes some time.
A First-Time Home Buyer's Checklist
Submit an Offer
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Found the house you want? Congratulations! It’s now time to submit an offer. Your agent will help you decide on an amount. You’ll want your offer to be one that’s both fair and competitive and also corresponds realistically to your finances. Don’t wait to submit. If you think you want it, go for it. You can always rescind your offer within a couple days if you have a change of heart. Your agent will also help you establish contingencies (“walk-away” clauses in a contract, which allow you to back out of buying a house if certain conditions aren’t met), obtain disclosures (the seller’s responsibility that reveal any property defects), and establish a closing timeline (generally 30 days).
A First-Time Home Buyer's Checklist
Get a Home Inspection
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A proper home inspection is worth every penny. Ask your agent to recommend a trusted inspector. A home inspection will reveal exactly what condition your prospective home is in, from the roof to the electrical, the HVAC, the foundation and everything in between. This inspection will identify any issues the seller may not have disclosed and reveal what may need remediation. The inspection will also highlight any potential home improvement projects you may want to tackle after closing.
A First-Time Home Buyer's Checklist
Get an Appraisal
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A home appraisal is required by your lender to make sure your financed offer does not exceed the value of the home. Like your inspection, this is for your protection; you want to make sure you’re not getting fleeced. An appraisal takes into account “comps” (sale prices for comparable homes in the area), square footage, appearance, amenities, and overall condition.
A First-Time Home Buyer's Checklist
Renegotiate
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Following the inspection and the appraisal, you’ll have the opportunity to renegotiate your offer based on what you’ve learned. If only minor repairs are needed, you may choose not to renegotiate at all. But if the inspection reveals something major or the appraisal comes in much lower than what you’ve offered, you may consider changing your offer based on repair costs, or ask the seller to do the repairs themselves. If the seller is unwilling to budge on price or conduct the necessary repairs to bring the house into good condition, be prepared to walk away. This happens. While disappointing, it’s better than being stuck with a problem home.
A First-Time Home Buyer's Checklist
Close the Sale
Start Over
Take a deep breath. You made it. On closing day, you’ll sign a giant stack of paperwork transferring ownership into your name. Don’t be intimidated. Your closing officer will help you understand what each form means. Closing costs and down payment are now due. Once everything is in order, you’ll receive the keys to your new home.
If this process sounds like a lot, it is. But rest assured, thousands of people go through it every day. It’s an exciting milestone in life, and you may even learn some tricks for the next time you decide to buy!
Better interest rates are just one benefit of community banking. Local decision-making is another. Community banks don’t have to wait for “headquarters” to approve loans: they can make those decisions themselves, quickly. Additionally they are close by – a benefit that became more important when COVID hit and shut down bank lobbies all over the country. Community banks
like the Institution for Savings,
with 16 locations throughout the North Shore, were able to offer appointment banking to its customers.
Habitat for Humanity Group Build
For example, the Institution for Savings, through its Charitable Foundation, gave more than a million dollars last year toward everything from safe and affordable housing to youth education programs to organizations that promote public health and human services.
May 2020 - Storey Avenue Newburyport Manager Jen Morgan and VP Chris Sullivan present a check to the Pelican Intervention Fund
That giving spirit trickles down to the bank employees, who also live side by side with their customers in these communities. Through #GivingforGood, the Institution for Savings gives each of its employees 10 paid hours every year to volunteer for a community cause of their choosing.
Meanwhile, entire “Green Teams” of bank employees head out into their communities every month to bring
NMLS # 409410
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