Eastern Bank deposit products:
Whether you’re a first-time homebuyer just starting your journey to homeownership or you’re looking to upgrade your current situation to account for a growing family, or considering purchasing an investment property, Eastern Bank has a range of options for residential mortgages to suit your individual needs.
For first-time homebuyers and housing market veterans alike, there are a handful of steps to becoming a homeowner:
For first-time homebuyers, the homebuying process will be unfamiliar territory and a first-time homebuyer program will help make the process clear and understandable. This will help you prepare for the road ahead and estimate the amount of time needed for each step, learn what documents you’ll need, how to compare different mortgage products and outline the entire process from home search to move-in day.
Many mortgage programs, including grants and down-payment assistance programs, will require that you take a first-time homebuyer loan course, and even if yours doesn’t, you will learn a lot about what you can expect from the homebuying process as well as what it’s like to be a homeowner.
A first-time homebuyer class will cover topics such as:
The first step toward homeownership is strengthening your credit and saving for a down payment. Depending on the loan program, your down payment can come from savings, a gift, or down payment assistance, and many first-time homebuyers qualify with as little as 3%-5% down. Speak with a mortgage professional to explore available grants and assistance programs.
Estimate how much you can afford to pay for a new home with our Home Affordability Calculator.
Compare the cost of renting versus owning a home with out Rent vs Buy Calculator.
Change variables like the mortgage rate and term to see how they impact the monthly payment.
You can obtain a free copy of your credit report each year from the three credit reporting agencies (Equifax, Experian and TransUnion) by visiting annualcreditreport.com.
Your credit report provides an overview of your credit history, while your credit score may require a fee to access. Since your score plays a major role in mortgage approval and interest rates, review your report carefully and contact the reporting agency if you find any errors.
Most lenders look for a mortgage payment that falls within 30–35% of your monthly pre-tax income, though this can vary based on your financial situation. Be sure to factor in property taxes and homeowners insurance, as these costs may increase over time.
Lenders also typically want to see two years of steady employment and consistent income. As you prepare to apply, gather documents that verify your income and assets, as these are commonly required during the mortgage application process.
Income and employment:
Assets:
Other:
Later, when you have received a Loan Estimate and provided an Intent to Proceed to your lender, your loan officer will tell you which documents are necessary for your loan application.
Choose a lender
You can trust our Eastern Bank mortgage team to provide you with great service and advice, as well as competitive programs and rates. Our knowledgeable, local Mortgage Loan Officers live and work in your community, and can help guide you every step of the way through the homebuying process.
With a budget in mind, now is the time to start considering your mortgage options; keep in mind the type of property you buy may determine the type of loan for which you are eligible. Discuss the difference between a variable-rate mortgage and a fixed-rate mortgage, jumbo and conventional mortgages, and the pros and cons of each with your mortgage professional.
Monthly payments for a fixed-rate mortgage will not change over the life of the loan, whereas with a variable-rate mortgage, monthly payments rise and fall with interest rates. Additionally, the rate on an adjustable-rate mortgage will typically be below market rate for the introductory period, then resets to the market rate for the remainder of the loan once that ends. If you think you might move or refinance within a few years of buying your home, an adjustable-rate mortgage may be an option to consider.
There are also local and federal programs to help people buy a home through down payment and closing cost assistance, as well as special loan terms. Your Eastern Bank mortgage professional can provide you with more information about these.
| Benefits | Conventional Mortgages | First-Time Homebuyer Mortgages | Portfolio Mortgages | Government Mortgages |
|---|---|---|---|---|
| Best if you... | Have stable income and credit history | Need to make a smaller down payment | Want your loan serviced locally by Eastern Bank | Are a veteran, are looking for a home in a rural area or have challenges with your credit profile |
| Features | Often have the lowest rates and fewest restrictions | - Provide the option for small down payments
| Larger fixed-rate loans and competitive adjustable-rate mortgages (ARMs) | Offer special features for veterans or those looking for a home in a rural area |
| Offerings | Fixed-rate mortgage Adjustable-rate mortgage (ARM) | Massachusetts Housing Partnership (MHP) ONE Mortgage MassHousing loans Eastern Bank Portfolio First-Time Homebuyer Mortgages | Fixed-rate mortgage Jumbo mortgage Adjustable-rate mortgage (ARM) Interest-only mortgage Opportunity Mortgage
| Veterans Administration (VA) loans USDA Rural Housing Programs Federal Housing Administration (FHA) mortgages |
Choose a real estate agent
Make an offer
Once you’ve found a home that meets your requirements, you should work with your agent to submit an offer. Your agent can help you determine the best price to offer and any other terms you may want to add, such as an ability to close quickly. You will also need to provide a small deposit, usually $500 or $1,000 at the time of the offer, then up to 5% when the Purchase and Sale Agreement is signed. An offer is a binding agreement, so it is a good idea to have an attorney at this stage.
Have your offer accepted
Getting your offer accepted may require some negotiating before you reach an agreement that is documented in the Purchase and Sale contract. Your agent will negotiate on your behalf. Once you and the seller agree on terms, you’re on your way!
Apply for a loan
If you were already preapproved for a mortgage, you should notify your mortgage officer once your offer is accepted so they can update your mortgage paperwork with information about the property and collect the documents necessary to complete your mortgage application – as well as any associated fees – and order an appraisal.
Final approval will be subject to receipt of a signed loan application and disclosures, verification of income, assets and other factors, satisfactory appraisal and title reports, continuance of satisfactory credit history and any other pertinent factors.
Shop for insurance
If you are buying a single- or multi-family home, you will need homeowner’s insurance; houses located in a flood zone require flood insurance as well. If you are purchasing a condominium, you may need to purchase a condominium insurance policy to cover the inside of your unit.
Prepare to move
Hire movers or a moving truck and start packing items you won’t need before moving day. Make sure to identify what's in each box and what room it belongs in.
Change your address
In addition to changing your address with the post office, make a list of all the other places you’ll need to update it: subscriptions, bills, doctors’ offices, your driver’s license, etc., and be sure to provide them with your new contact information.
At the closing, you will need to bring a check for closing costs: fees for services such as processing the mortgage and the title search, the rest of your down payment, and prepaid expenses like taxes and insurance. You will sign all the documents that obligate you on your loan. The closing may be held at a title agent’s office, a registry of deeds or another place that you, your lender and the closing agent agree on.
You will receive a First Payment Letter that will tell you the amount of the first payment, the date it is due, and the address to which it should be sent. If the servicing on your loan is being sold, you may receive a letter from the servicer with a new payment address.
If at any time during the term of the mortgage you think you may have trouble making a payment, notify your lender as soon as possible so they can help you figure out a plan to get back on track.
Eastern Bank is a member of the Nationwide Mortgage Licensing System & Registry (NMLS); NMLS ID# 451827.
This is not a commitment to lend. Subject to program guidelines and credit approval. Other terms and conditions may apply.
