Thompson Law Group, P.C. & Home Key Title & Closing, Inc.The Key Player In Getting Your New Home Keys2026-06-02T22:03:44Zhttps://www.homekeytitle.com/feed/atom/WordPress/wp-content/uploads/sites/1201691/2021/09/cropped-favicon-32x32.pngOn Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[What’s considered before your mortgage is approved?]]>https://www.homekeytitle.com/?p=474902026-06-02T22:03:44Z2026-06-02T22:03:44ZBuying a home is an exciting milestone, but mortgage approval involves much more than finding the right property. Lenders carefully evaluate your financial situation before deciding whether to approve a loan application.
Understanding the factors that influence mortgage approval can help you prepare ahead of time and improve your chances of securing favorable loan terms.
Your income and affordability
One of the first things lenders examine is your income. They want to confirm that you earn enough money to comfortably manage monthly mortgage payments alongside your other financial obligations.Pay stubs, tax returns and bank statements are commonly reviewed to determine whether the requested loan amount fits within your financial capacity.
Your debt-to-income ratio
Lenders compare your monthly debt payments to your monthly income. This calculation helps them assess how much of your income is already committed to existing obligations.A lower debt-to-income ratio generally indicates that you have more financial flexibility and may be better positioned to handle a mortgage responsibly.
Your credit history and score
Credit reports play a significant role in the approval process. Lenders review payment history, outstanding balances and overall credit management habits.Strong credit often leads to better interest rates and loan options, while missed payments or high debt levels may raise concerns about repayment risk.
Your savings and available funds
Mortgage providers also evaluate your savings. They want to see that you can cover a down payment, closing costs and emergency expenses after purchasing the property.Demonstrating financial reserves can provide reassurance that you are prepared for unexpected expenses that may arise after moving into your new home.
Property and loan verification
Even after preapproval, lenders usually require a property appraisal, title review and additional documentation before issuing final approval.These steps help confirm that the home supports the loan amount and meets lending requirements. If you have questions about mortgage qualification or the home-buying process, seeking reliable legal guidance may help you better understand your options.
]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[What is mortgage loan preapproval?]]>https://www.homekeytitle.com/?p=474892026-05-18T19:30:53Z2026-05-18T19:30:53ZIf you contact a mortgage lender about getting a loan for a new house, they may have you submit an application, including making financial disclosures. You will then get a preapproval letter.One important thing to note is that this preapproval is starkly different than final approval for the loan. It does not mean you have already been given that loan or that you have access to the funds. So what is the goal of a preapproval?
Establishing your financial position
The preapproval letter helps because it demonstrates that the lender thinks you will likely qualify for a loan in a certain range based upon their preliminary examination of your finances. This can give you an idea of roughly what you are able to afford. That can be very helpful as you look at the local market and try to decide what homes you would even want to make an offer on.Once you do make that offer, having a preapproval letter can strengthen your position. It shows the seller that you are likely to get the loan, which vastly reduces the risk that you will be denied and derail the transaction process.That being said, while you may make an offer with your preapproval letter, you will need final approval before closing on the home. This is when the specific dollar amount of your mortgage loan is approved, depending on the purchase price that you have negotiated with the seller. It should be roughly in line with your preapproval range, but it will give you a more definitive answer regarding your financial obligations.If you are a first-time homebuyer, navigating these steps can feel complex, which is why it often helps to work with an experienced attorney.
]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[Don’t become the victim of a real estate scam]]>https://www.homekeytitle.com/?p=474882026-05-02T22:02:20Z2026-05-02T22:02:20ZReal estate transactions can involve significant amounts of money. The average cost of a Massachusetts home is currently over a half-million dollars.
This kind of money unfortunately can attract scammers and others who engage in fraud. According to the FBI, almost 10,000 people were victims of real estate fraud throughout the U.S. in 2024 – with losses totaling over $170 million. Many more people were likely victimized but too embarrassed to report it, blamed themselves or thought there was no point in trying to seek justice.
How scammers fool people
Real estate scams are easier to perpetrate than ever. That’s partly because more people are buying property without visiting it in person. “Deepfakes,” which are defined as “realistic, AI-generated fake videos, images or audio recordings that mimic a real person’s likeness” can be used to portray real estate professionals, buyers, sellers and even attorneys – not to mention properties.Even when someone is purchasing a local property or one they’ve toured themselves, the increased use of online reviews, electronic signatures of critical documents and electronic transmission of large sums of money can make legitimate parties subject to hacking. Scammers can pose as a real estate agent, someone with the title company or the lender to divert money that could represent a good portion of someone’s savings.That’s why it’s critical to confirm that you’re dealing with the right person when making any transaction online – and certainly before moving money. Legitimate real estate and other professionals shouldn’t mind if you call them and verify that a document or instructions came from them.Of course, there are always fraudsters who will claim they’re selling a home that doesn’t exist or isn’t available for sale, or offer to buy a property with money they don’t have. They may encourage their victims not to bother with a real estate agent, inspectors or anyone else – claiming they can get a better deal by “cutting out the middleman.” Just remember the adage, “If it’s good to be true, it probably is.” While no one enjoys the red tape and regulations associated with real estate transactions, they serve an important purpose. In addition to the precautions discussed here, having a trusted real estate and legal professional guiding you through the home purchase or sale process can help ensure that you don’t become the victim of a financially devastating scam.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[What percentage of your budget should go to a mortgage?]]>https://www.homekeytitle.com/?p=474872026-04-15T14:02:35Z2026-04-15T14:02:35ZWhen considering what percentage of your budget should be assigned to a home mortgage, a good rule of thumb is to allot no more than 30%. Some argue that it should be lower, such as 25% or 28%. But as long as you keep 30% as the upper bound, your home can often fit within your budget.One important thing to remember is that your monthly payment can also include other costs, which are put in escrow. For example, many mortgage lenders will escrow money to cover the cost of property insurance, which is required by the mortgage lender, and the payment of property taxes, which are required by the local government. So a portion of that monthly payment will be allotted to the principal, the interest and the escrow.
Why should you not exceed 30%?
Everyone’s situation is unique, so exactly what you can afford depends on your other financial obligations, your income level and things of this nature.But staying under 30% means that your house will truly be an affordable part of your life. Remember that there are many costs that come along with owning a home, such as maintenance and upkeep or utilities. If you put too much of your budget toward a single monthly mortgage payment, there is no room for these other necessary costs.In fact, when many people find themselves facing foreclosure, it is not that they have no income. It is simply that their income level is not enough to make their mortgage payments on a consistent basis. Budgeting in advance can help you avoid this outcome.
Making a home purchase
If this is the first time you are purchasing a home, it is important to be well aware of the legal steps you can take to make the process go smoothly. Planning in advance can be very helpful.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[What is earnest money in a home purchase?]]>https://www.homekeytitle.com/?p=474862026-03-29T20:06:25Z2026-03-29T20:06:25Zearnest money is applied toward the down payment or closing costs. The amount can vary considerably, depending on the state of the market and the purchase price of the home. It’s often a very small percentage of the value of the home. Some homebuyers offer earnest money to make their offer more attractive to buyers, which is sometimes necessary in competitive markets.
Contingencies and earnest money
The terms and conditions of the earnest money are located in the purchase agreement. These are called contingencies. Contingencies spell out when earnest money can be kept by the seller and when it must be returned to the buyer if the sale doesn’t happen for some reason.
Some common contingencies include financing, property inspections and appraisals. It’s critical that the terms of the earnest money are spelled out clearly so there isn’t room for dispute about what should happen with the funds.
Earnest money isn’t held by the seller or the purchaser. Instead, a third party, such as an escrow agent will hold the funds to help offer protection for both parties. This is a critical part of the real estate transaction.
Anyone in the process of purchasing a home should ensure they understand their rights and responsibilities. Having experienced legal guidance can help.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[Do you take possession the same day that you close on a house?]]>https://www.homekeytitle.com/?p=474852026-03-16T18:53:14Z2026-03-16T18:53:14ZIn many cases, new homeowners will take possession of a home on the same day that they close. They will meet with the sellers and the title company for closing, perhaps along with their legal representation. All of the documentation will be signed, certain fees will be paid – known as closing costs – and the keys will change hands. The new buyers immediately own their home, and they could drive directly there and go inside legally.
However, it is important to note that this is not always how it is done. The possession date does not have to be the same as the closing date. The real estate contract should explicitly state on which day closing will occur and on which day possession or ownership will be transferred. Both sides must know if these are the same day or if they are substantially different.
Why would they not be the same day?
There are many potential reasons why the same day may not be chosen. For instance, some sellers put their homes on the market to see how much they can earn, but they have not yet purchased another home. They may specify a much later possession date, giving them time to buy a second home and move before the new owners move in.But this could create significant problems if there is a miscommunication about the date. Say that the buyers are living in an apartment, but they have moved out in anticipation of moving into their new home. If they close on the first of the month, but then they suddenly find out that they are not actually going to gain possession of that home until the end of the month, they could find themselves without anywhere to live, as new tenants have moved into their old apartment.This is one of the reasons why it is so important to carefully go over all of the documentation during every stage in a home transfer. It can help to work with an experienced law firm at this time.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[Addressing new damage found during a final walk-through]]>https://www.homekeytitle.com/?p=474842026-03-03T23:33:04Z2026-03-03T23:33:04ZReal estate buyers are typically aware of major property defects before they make offers. Sellers have an obligation to provide written disclosures outlining all of the known issues with the various systems within the home. The closing process typically requires an in-depth inspection.
Buyers also have the right to walk through the property one final time to inspect it prior to a closing. Most of the time, that final walk-through is simply a technicality and may serve to make the buyer more excited about the closing. Occasionally, a walk-through uncovers signs of problematic changes to the property. What may happen then?
The sellers may need to take responsibility
Typically, buyers who spot new damage to the property during a walk-through need to notify the seller as soon as possible. They need to document the damages that they notice and then determine what the likely cost may be to address the issue. In some cases, sellers may have worked with moving professionals who have insurance that can pay for the damages caused while removing their personal items from the property. Other times, the sellers may be personally responsible for the damages they caused while vacating the premises. Sellers might agree to cover the cost of necessary repairs or to slightly modify the purchase agreement to reflect the damages that they caused between when the buyer made the offer and when the closing occurs. Occasionally, negotiations related to last-minute damages may result in a delayed or canceled closing. Buyers generally need to ensure that their offers and purchase agreements protect them in case they need to negotiate or cancel a closing. Working with a real estate attorney may be important for those preparing to purchase residential real estate.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[3 reasons older couples sell their homes]]>https://www.homekeytitle.com/?p=474832026-02-12T18:17:11Z2026-02-12T18:17:11ZIn many cases, older couples will sell their homes. They may have bought these homes decades ago, when they wanted to start a family, looking for a forever home where they could raise their children.
But as they grow older, life changes, and they decide to put their house up for sale. Below are three potential reasons why this happens.
A single-floor layout
For some older couples, they are looking for a home that is more accessible as they age. The home where they raised their children may have bathrooms and bedrooms on the second floor, for instance, but ascending and descending stairs can become difficult. They may be looking for a single-floor layout that is easier for them to use.
Downsizing to make money
In other cases, older couples look at the value of their home and realize that it has increased substantially since they bought it. They no longer need a home with so many bedrooms because they have become empty nesters, so they downsize in order to access that equity. They sell the large family home and use the money to buy a smaller house, keeping the leftover proceeds from the sale.
A new stage in life
As noted above, couples at this age are often empty nesters, and the children have moved out of the house. This is a substantially different stage in life. A home that made sense when they were younger may now feel too big and too costly to heat, cool or repair. They may simply be looking for a smaller house that fits their current life stage.Selling a home at this age can have a significant impact on a person’s assets and finances, so it is very important that they know exactly what steps to take.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[2 vital details a title search uncovers]]>https://www.homekeytitle.com/?p=474812026-02-03T11:00:51Z2026-02-03T10:59:08ZOnce a buyer’s offer to purchase a property is accepted, they will sign a Purchase and Sale (P&S) agreement. This will then be followed by a title search - a thorough examination into the property to obtain crucial information.
Below are two important details a title search uncovers:
The property’s legal owner
When someone has listed a property and taken the steps to sell it to you, it’s natural to believe they are the owner. But this is not always true. They may not be the rightful, legal owner. A title search helps you confirm the seller's right to sell. You will have access to a chain of title, which will have details of all previous owners of the property going back at least 50 years. This way, you can know if the seller is listed as the current owner.If the property is being sold by a non-owner who claims to be legally responsible for the sale, you may need to conduct further research to confirm this. For instance, if an estate’s executor is the person selling it, confirm their official appointment by the court for the role and review additional documents that permit them to sell the property.
Any encumbrances
You don’t want to buy a property that has an encumbrance because encumbrances generally follow the property, not the person. If a property has a mechanic’s lien, an unpaid mortgage loan, a judgment lien, unpaid property taxes, restrictive covenants or utility easements, they will often stay with the property. You may inherit financial liens and legal obligations if you buy it.When you uncover encumbrances, you can require the seller to clear the discovered defects or terminate the contract.A title search verifies if a title is marketable. It’s important to understand how to conduct such a critical search to obtain adequate information.]]>On Behalf of Thompson Law Group, P.C. & Home Key Title & Closing, Inc.<![CDATA[These mortgages can be more accessible but also riskier]]>https://www.homekeytitle.com/?p=474802026-01-28T16:13:53Z2026-01-28T16:13:53ZChanging rate issues
An adjustable-rate mortgage may have unpredictable future payments. When interest rates fluctuate, homeowners may see their payments change substantially with limited prior warning. They may then struggle to make payments and may be at the mercy of the markets until rates come back down.
The challenges of a balloon mortgage
Balloon mortgages often have a fixed rate and offer very accessible introductory payments. However, the issue comes at the end of the repayment cycle. There is a large final balloon payment that may be tens of thousands of dollars or possibly more due at the end of the mortgage term.
Property owners may struggle to refinance the remaining amount owed when they have a balloon payment coming due, especially if they have not addressed the income or credit issues that prevented them from securing a traditional mortgage initially. Aspiring buyers and agents assisting buyers who are close to qualifying but not quite able to do so may need help evaluating their options.
Discussing different types of mortgages, and possibly alternative strategies for homeownership, with a skilled legal team can be helpful for those who struggle to qualify for traditional mortgages. A lawyer's insight can help people protect themselves during residential real estate transactions.]]>