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A First-Time Homebuyer’s Guide to Boston

By U.S. News & World Report

Finding the perfect property can be a challenge for any first-time homebuyer. But in Boston, where the city’s rich history and thriving job market help make it one of the most competitive housing markets on the East Coast, the real estate landscape can be particularly intimidating.

According to two of Boston’s top real estate agents as identified by OpenHouse Realty, a real estate technology company (and a U.S. News partner), a solid team and a little bit of trust will get you exactly where you need to be. Here are these agents’ top tips for first-time homebuyers in Boston.

[Read: 8 Must-Haves That Are Limiting Your Home Search.]

Shop around before you shop around. One of the biggest favors you can do for yourself as a first-time homebuyer is to invest time and thought into selecting a real estate agent and mortgage broker you can trust. In a market as competitive as Boston’s, having a team on your side who will represent your best interests will make the homebuying process more efficient.

“Buyers need to find someone that is going to advocate for them — someone who will have no responsibility to the seller,” says real estate agent Ellen Grubert of Ellen, Janis and Josh Real Estate Team and RE/MAX Destiny.

Frank Celeste, a real estate agent with Gibson Sotheby’s International Realty, agrees that the best brokers will know the comparable sales data inside and out, helping you navigate a fast-paced and highly competitive market. “It’s a tough time to be a buyer,” he says. “There are many dynamics that first-time buyers aren’t privy to, but a knowledgeable broker can make all the difference.”

Imagine multiple versions of your wish list. Boston’s inventory is limited, so you likely won’t have the luxury of shopping around too much or leisurely weighing your options. According to Grubert, Boston homebuyers should be prepared to make an offer on a property within 24 to 48 hours. The longer and more rigid your wish list, the more challenging it is to snag that perfect property. “Know the areas in which you’re willing to be flexible,” Grubert says.

Many wish list negotiations come down to lifestyle choices. Be honest with yourself about your transportation preferences or how important access to urban amenities like shops and restaurants is to you. If the amenities of the home are more important than location, know that ahead of time. If location is nonnegotiable, understand you may need to be willing to make some sacrifices on other aspects of the home.

[Read: 20 Best Places to Live in the USA.]

“At the end of the process, I believe everyone ends up in exactly the home they’re meant to be in,” Celeste says.

Assess the rental rates. According to Celeste, many of Boston’s prospective buyers have already been renting in the city. “With the prospective career opportunities, a lot of people are looking to stay close to where they are currently living,” he says.

Whether or not you are already living and renting in Boston, assess the rental rates. This information can help you justify the purchase: On average, rental rates for a one- or two-bedroom apartment priced somewhere between $2,000 and $3,000 a month are on par with — if not higher than — a monthly mortgage payment, according to Grubert. For a comparable price, home ownership grants you complete control over a property.

Don’t be caught by surprise when the end is in sight. Grubert and Celeste most often see first-time homebuyers get caught off guard by closing costs and inspection processes.

“A good mortgage lender will inform you of things like whether you should expect to pay two weeks of additional taxes because you closed in the middle of a month,” Grubert says. “These are the sorts of things that can add up and surprise homebuyers.”

[Read: 4 Real Estate Trends to Know Before Selling Your Boston Home.]

The closing step is perhaps when it is most critical to have a team of real estate agents and mortgage brokers you trust, according to Grubert. “It can be an emotional and complicated process,” Grubert says. “But if you inform yourself and surround yourself with a team you trust, you will have a positive experience.”

Looking for a real estate agent in Boston? U.S. News’ Find an Agent tool can match you with the person who’s most qualified for the job.

More from U.S. News

What Your Real Estate Agent Can’t Tell You

The 100 Best Places to Live in the USA

What’s It Like to Live in Boston?

A First-Time Homebuyer’s Guide to Boston originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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