Your expectations when working with mortgage lenders in Massachusetts depend on the type of lender. A lender that works directly for a lending institution will provide all of the options that particular lender allows and that you qualify for. Other lenders actually work as brokers that shop your loan to a variety of lending institutions.

Brokers that provide mortgages in Massachusetts can provide access to more lenders but may not share your best interests. Brokers usually receive a commission from the lender and will tend to push mortgages that offer the greatest profit for them.

There are three points you should discuss with a MA mortgage lender when considering which one to use:

1. Interest rate on the loan. Rates change quickly in the volatile housing market and your credit rating will also affect the rate you can expect from Massachusetts mortgage companies.

2. Points on the loan. Prepaid mortgage interest points will lower your interest rate but other types of points may not benefit you at all.

3. Closing costs. Lenders charge fees for various services and you will want to know what they are as soon as possible.

Action Steps
The best contacts and resources to help you get it done

Get loan offers through a Massachusetts mortgage broker

Talk with several of the broker's recent clients before getting a loan through that broker. Find out if the broker was able to meet all of their expectations.

I recommend: Poli Mortgage Group is in Norwood and offers a variety of tools for homeowners in addition to standard broker services. GSF Mortgage Corporation is based in Winchendon and provides a full range of brokerage services.

Obtain a referral for mortgages in Mass. from a real estate agent

Real estate agents usually send a substantial amount of business to their preferred lenders. A smart mortgage lender will take good care of these referrals.

I recommend: ReMax Prestige is based in Dracut and provides specific information on agency relationships including mortgage brokers. Priscilla Stolba Real Estate in Mashpee lists banks that it does business with.

Solicit quotes directly from mortgage companies in Massachusetts

You may want to contact a lender directly if you are already comfortable with one. Local lenders should be familiar with specific factors that affect the housing market in your area.

I recommend: Homestead Funding in Chalmsford provides an online pre-qualification form and a complete range of mortgage products. Applied Mortgage Services is located in Northampton and offers FHA and VA loans.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Mortgage lenders may sell Massachusetts mortgages to another company. Don't be surprised if you receive a notice from both the old and new lending company advising you of the change and providing instructions for making your payments to the new lending company. The right to service your loan also includes managing your escrows for insurance and property taxes.

Massachusetts mortgage brokers can help you secure the best possible home mortgage rates in Massachusetts from a variety of mortgage companies. In Massachusetts, mortgage companies are plentiful, but finding one that offers the best terms and options can be time-consuming. Mortgage brokers can help you save time in your search for financially attractive mortgage loans.

Massachusetts mortgage brokers have the experience and connections to examine thousands of different deals from a number of Massachusetts mortgage companies. When hiring Massachusetts mortgage brokers, look for a professional who has a keen understanding of the residential market in your particular area. That’s because housing markets vary tremendously by region, and looking for a downtown loft in Boston on the Charles is vastly different from buying a 100-year-old farmhouse in Lowell or a beach house on Cape Cod.

To find the best mortgage companies in Massachusetts:

1. Make sure you're working with reputable mortgage lenders in Massachusetts by checking records with government and better-business groups.
2. Start your search online and look at rates and terms on a variety of websites for mortgage brokers and mortgage companies in Massachusetts.
3. Don't limit yourself to mortgage lenders in Massachusetts or a Massachusetts-based broker. National loan originators and brokers may offer the best terms on Massachusetts mortgages.

Action Steps
The best contacts and resources to help you get it done

Search local Massachusetts mortgage brokers and lenders associations

Local mortgage lenders associations and mortgage brokers associations can help you find professionals who understand the local housing market and Massachusetts mortgages.

I recommend: Finding a Massachusetts mortgage lender at Massachusetts Mortgage Bankers Association, which lists member banks. For Massachusetts mortgage brokers, look for members of the Massachusetts Mortgage Association.

Consider local and regional banks for mortgages in Massachusetts

Local and regional banks are some of the most common mortgage lenders in Massachusetts.

I recommend: Find local banks that offer Massachusetts mortgages at USCITY.net or LocalLender.info.

Use online sources to search for Massachusetts mortgage companies

Numerous online sources can help you shop for the best mortgage lenders in Massachusetts.

I recommend: The Massachusetts Office of Consumer Affairs & Business Regulation lets you download a list of mortgage lenders and mortgage brokers licensed to do business in Massachusetts. PreferredConsumer.com lets you search for Massachusetts mortgages. At MortgageLoan.com, you can compare brokers and lenders by city. Massachusetts Mortgage Clearinghouse offers a database of lenders and brokers.

Work with national mortgage lenders for mortgages in Massachusetts

Many national mortgage brokers and Massachusetts mortgage companies offer mortgage loans that may be right for you.

I recommend: Consider national lenders, such as GMAC Mortgage or Wachovia, or check out Equifax, which offers a nationwide mortgage referral service. Veterans may qualify for a loan through the VA Mortgage Center.com or USAA.com, where you can get pre-approved for Massachusetts mortgages.

Check the reputations of MA mortgage companies

Make sure the mortgage brokers or mortgage lenders in Massachusetts you're considering are trustworthy and haven't been reported by borrowers for unethical business practices.

I recommend: Check with the Better Business Bureau of Boston and Eastern Massachusetts and the Better Business Bureau of Central and Western Massachusetts to make sure the Massachusetts mortgage lender or broker is legit.

Find out what local experts are saying about mortgages in Massachusetts

Local real estate experts, including your own real estate agent, can provide insider dope on mortgage companies in Massachusetts and market trends that any househunter needs to know, especially in a hot market like Boston.

I recommend: The Boston Real Estate Blog and the Massachusetts Real Estate Blog help you keep up with the latest trends in a rapidly changing big city market. To find a real estate agent, visit the Massachusetts Association or Realtors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Massachusetts mortgage companies should be familiar with state fees and should have a network of local appraisers and title companies to make the process go more smoothly.
• •  Bank mortgages in Massachusetts are negotiable. Shop around for rates from mortgage brokers and mortgage companies before approaching your local bank.
• •  When checking mortgage rates in Massachusetts, make sure all rate quotes are from the same time period due to market fluctuations.
• •  Tied mortgage brokers don't charge an upfront fee, but work with a limited number of mortgage companies in Massachusetts who pay them a commission should you choose their mortgage.
• •  An independent broker charges an upfront fee but casts a wider net, offering a variety of mortgages in Massachusetts from a host of Massachusetts mortgage companies.

Choosing a mortgage lender from the many banks, brokers and lenders is usually the most challenging step in making the most of mortgage lenders in Massachusetts. Your best strategy should be to select a large number of Massachusetts mortgage lenders and eliminate candidates as you make your criteria more selective.

A mortgage broker can help you save time in your search for mortgages in Massachusetts but they are not able to negotiate terms you would not be able to get for yourself and they are not obligated to get the best deal for you.

There are three things you can do to locate the best mortgage lending company in Massachusetts for your needs:

1. Ensure your mortgage broker has specific expertise in your local real estate market. Housing markets can vary greatly within a short distance.

2. Check records with better business groups and government sources to ensure a Massachusetts mortgage companies is reputable.

3. Search online to find the terms for a variety of mortgages in Mass. Be sure to use the same time period when comparing interest rates due to the volatility of the real estate market.

Action Steps
The best contacts and resources to help you get it done

Search for reputable brokers of Massachusetts mortgages

Massachusetts mortgage brokers are closely regulated and there are a variety of online resources you can use to investigate a mortgage broker's credentials.

I recommend: The Massachusetts Mortgage Association provides a current list of its members online. The Office of Consumer Affairs and Business Regulation maintains a list of various licensees including mortgage brokers.

Find an MA mortgage lender in a directory

There are a variety of websites that allow you to select a list of mortgage lenders by state. These sites typically provide other criteria as well.

I recommend: a la mode has a list of mortgage lenders along with the license number and website of each lender. Reverse Mortgage Adviser provides a list of mortgage lenders in Massachusetts by county that offer reverse mortgages.

Research Massachusetts mortgage rates

There are many research sites in Massachusetts that provide information independent of any one mortgage lender. They may be able to offer specific advice on the housing market in your area and frequently have other resources to help you in your search for a mortgage loan.

I recommend: Massachusetts Mortgage online lists brokers in Massachusetts along with a summary of their specific services. HomeMortgages.com lists the contact information for mortgage brokers in Massachusetts .

Tips & Tactics

Helpful advice for making the most of this Guide

• •  An independent broker will charge you a fee upfront but will contact a larger number of mortgage companies in Massachusetts. Tied mortgage brokers don't charge an upfront fee but only work with a limited number of lenders. These brokers usually get a commission from the lender upon approval of the loan.

The real estate market in Eastern Massachusetts has typically been one of the most expensive real estate markets in the country. In an effort to make home ownership more tangible, the Massachusetts state government has created a number of incentive programs for mortgage lending to low and moderate income home buyers. These mortgage lending programs not only make homes more affordable, these loans reward the use of public transportation and the restoration of property that has been damaged or neglected.

Action Steps
The best contacts and resources to help you get it done

Home of the Brave program

Veterans of the U.S. Military living in Massachusetts are eligible for mortgages through the 'Home of the Brave' program. This program does not require a down payment and is available to active duty service and spouses of military personnel killed in active duty. The 'Home of the Brave' program is only available for the purchase of a primary residence.

I recommend: Meetinghouse Bank is a local mortgage lender that has committed to lending up to five million dollars in home loans to applicants that qualify for mortgages through the "Home of the Brave" mortgage program.

Mass Advantage

Mass Advantage loans are available to lower income, first time home buyers. These loans are intended for the purchase of condominiums and multi-family dwellings. Borrowers must have good credit scores and provide a down payment of at least three percent when purchasing their home.

I recommend: The Massachusetts Housing Finance Agency website details limits that apply to specific cities or towns, such as income and purchase price.

SoftSecond

Massachusetts mortgage lenders may offer home buyers 30 year fixed mortgage rates a quarter to one half of a percent below the market interest rate through SoftSecond loans. These loans combine traditional mortgages with a subsidized second mortgage. Mortgage lenders use SoftSecond loans to assist borrowers in buying more expensive properties. This program is the most successful in Massachusetts for assisting low and moderate income borrowers purchase their first home.

I recommend: The Massachusetts Housing Partnership provides detailed explanation of SoftSecond mortgages for lenders and borrowers.

MassHousing Purchase and Rehabilitation Mortgages

MassHousing Purchase and Rehabilitation Mortgages allow the mortgage lender to collect one quarter point (0.25 percent) on the loan to cover administration costs. Massachusetts grants purchase and rehabilitation loans to cover the cost of the home purchase as well as the cost of rebuilding the property, up to 97 percent. These loans require a down payment of three percent and require that all construction be completed by licensed contractors.

I recommend: Basic qualifications for the purchase and rehabilitation loan program are listed on the website for the City of Peabody.

Take the 'T' Home

In an effort to reduce urban sprawl and encourage the use of public transportation, Massachusetts has approved mortgage lenders to grant mortgages with low interest rates and no down payment to frequent riders of Massachusetts public transportation. Borrowers are not required to be first time home buyers, but cannot own more than one home at the time of closing.

I recommend: Melrose Cooperative Bank is a community bank within service area of the Massachusetts Bay Transit Authority (MBTA) participating in the Take the "T" Home program.

MyCommunity Mortgage

MassHousing provides listings for approved mortgage lenders for the MyCommunity Mortgage program. The MyCommunity program is available to borrowers with an income too high for a MassAdvantage Mortgage. However, there are income limits for borrowers that apply for a mortgage through the MyCommunity program. The income limits for borrowers are contingent upon the community in which the home is purchased.

I recommend: The website for Deval Patrick, Governor of Massachusetts, provides more details about the MyCommunity and MassAdvantage mortgage loans.