Buyer/Seller Tips

At Rizzo Mattson, REALTORS^®, we understand that buying or selling a home is a major decision—and having the right information can make all the difference. Our Buyer & Seller Resources page is packed with helpful tools, expert insights, and practical guidance to support you at every step of the process. Whether you're preparing to list your property or getting ready to make a purchase, you'll find valuable tips, checklists, and answers to common questions to help you move forward with confidence. Let us be your trusted resource as you navigate the Central Maine real estate market.

Understanding Mortgage Insurance Options

What is Private Mortgage Insurance (PMI)

Private Mortgage Insurance (PMI) is designed to protect the lender—not the borrower—if the borrower stops making payments on the loan. Typically, PMI is required when a buyer makes a down payment of less than 20% of the home’s purchase price. While it doesn’t cover the borrower in cases like death, disability, or job loss, PMI allows many buyers to purchase a home without needing to wait years to save a large down payment. PMI doesn’t directly benefit the homeowner, but it does make homeownership more accessible. Buyers can often enter the housing market sooner, and even those who can afford a 20% down payment may choose to put down less in order to keep more cash available for other investments or tax strategies.

PMI Costs and Payment Options

Traditionally, PMI premiums ranged between 0.5% and 2.5% annually, depending on how much was put down and the overall loan risk. Today, borrowers can typically choose between paying a single upfront fee or slightly higher monthly payments spread over time—offering more flexibility at closing.

Self-Insured Mortgages: An Alternative to PMI

Some lenders, like Prudential Home Mortgage, offer loans without PMI by self-insuring. This means they take on the added risk and charge a slightly higher interest rate in return. This can be beneficial for borrowers, especially because PMI companies may reject applicants who already received loan approval from the lender. Also, since mortgage interest is generally tax-deductible (while PMI payments often are not), this can offer a potential tax advantage.

Types of Mortgage Insurance Programs

VA Loans (Veterans Administration)
These government-backed loans are available to qualifying veterans and certain public service workers. VA loans allow for zero down payment and require a modest one-time funding fee (typically around 1%). While there are limits to how much the VA will guarantee (up to $36,000 per loan), these programs can be an excellent option for eligible borrowers. You’ll need to obtain a Certificate of Eligibility from your local VA office to apply.

FHA Loans (Federal Housing Administration)
The FHA program is open to any qualified buyer and is especially popular with first-time homeowners. These loans require as little as 3.5% down, making them accessible for those with limited savings. However, not all lenders participate due to the paperwork involved. FHA loans typically include a one-time insurance premium (currently around 3.8%) which may be rolled into the loan balance.

Private Mortgage Insurance (PMI)
This is the most common type of mortgage insurance for conventional loans. With PMI, buyers can put as little as 5% down and still qualify for financing. Unlike FHA or VA loans, there is no cap on the total loan amount. The cost of PMI depends on various factors such as the size of your down payment and whether your loan has a fixed or adjustable interest rate. Borrowers may pay PMI monthly, at closing, or finance it as part of the loan. Once your loan balance drops to 80% or less of the home’s purchase price or appraised value (whichever is lower), you can request to cancel PMI. Under current regulations, lenders are also required to automatically cancel PMI once your equity reaches 22%—but it's wise to stay on top of this and contact your lender when you meet the threshold. If you're unsure which option is best for your situation, your loan officer can help guide you through today’s available mortgage insurance plans and how each one could impact your home purchase strategy.

Let’s Talk Negotiation

Why Pre-Approval Matters

As you begin your home search, one of the smartest first steps is to secure mortgage pre-approval. Unlike pre-qualification—which is based on unverified financial information—a pre-approval involves a full review of your finances by a lender. This includes credit checks, income verification, and debt analysis, resulting in an official commitment to lend you up to a specified amount.

Lenders typically look for a monthly mortgage payment that does not exceed 28% of your gross income, and total debt obligations that stay under 36% of that amount. Getting pre-approved helps you understand your home-buying budget, including how much you’ll need for a down payment and closing costs. It also gives you confidence when house hunting, knowing that your financing is already in place. Another benefit? Pre-approval strengthens your position in negotiations. Sellers are more likely to work with buyers who are already financially vetted, which could give you an edge in a competitive market.

Making the Offer

Once you’ve been pre-approved and found a home that fits your needs and lifestyle, it’s time to make an offer. Keep in mind that when a seller lists their property, it is a legally valid offer to sell under specific terms. As the buyer, your offer acts as a counterproposal, opening the door to negotiations.

When preparing your offer, consider several important factors:

• How the listing price aligns with your budget.
• Sale prices of comparable homes in the neighborhood.
• The property’s condition, age, and any anticipated maintenance costs.
• Included items, such as appliances, light fixtures, or furnishings.

While you may feel tempted to comment on decor choices or cosmetic details, it’s best to stay positive and avoid offending the seller. Personal tastes in paint or flooring don’t typically affect a home’s market value unless repairs are needed.

Submitting a lowball offer—especially without justification—can work against you by putting the seller on the defensive. However, if your research shows the home is significantly overpriced, a lower offer with supporting comps is entirely reasonable. When submitting a counteroffer, include a short expiration window, such as 24 hours, to avoid your offer being leveraged with other potential buyers.

What’s Included in an Offer?

• Purchase Price: Your proposed amount for the home.
• Deposit: A good-faith amount held in escrow, credited toward your purchase at closing.
• Terms: This includes not only the price but your financing details.
• Contingencies: Conditions such as financing approval, inspections, or repairs that must be met before closing.
• Inclusions/Exclusions: Items that will or will not stay with the home (e.g., appliances, furniture).
• Closing Date: The day when ownership officially transfers and the transaction is completed.

Preparing an informed and fair offer helps build goodwill and moves you one step closer to securing your new home. Your real estate agent can walk you through each step, making sure your proposal is competitive and complete

Why Buy with Rizzo Mattson Realtors?

Buying a home is one of the most important investments you’ll ever make—and having the right team on your side can make all the difference. At Rizzo Mattson Realtors, we combine local expertise, responsive service, and decades of experience to help you find the right property at the right price.

Whether you’re a first-time buyer, relocating, or searching for your forever home in Central Maine, our knowledgeable agents listen to your needs, guide you through each step, and advocate for your best interests. We know the neighborhoods, the market trends, and what it takes to negotiate a successful purchase.

With Rizzo Mattson, you don’t just get a real estate agent—you get a trusted partner who’s committed to helping you make smart, confident decisions. Let us help you find a place to call home.

Make Your Home Feel Bigger—Without Spending a Dime

If you're preparing to sell, one of the easiest ways to make your home feel more spacious and inviting is to declutter. Reducing visual noise helps buyers focus on the space itself—not your stuff. The best time for a yard sale or donation run is before your home hits the market. Go through closets, cabinets, storage rooms, and garages to clear out anything you no longer need or use.

Over time, it’s easy to accumulate furniture and décor, but what feels cozy to you might look crowded to a potential buyer. Consider storing extra chairs, side tables, and bulky pieces to open up your layout. Even small changes—like packing away rarely used kitchen gadgets, clearing bathroom counters, or editing out throw rugs—can make a big visual impact.

Organize closets and cabinets so they appear roomy and tidy. Buyers will peek inside! Tuck items into storage bins or move them out of sight to show off available space.

While you're at it, look at your furniture arrangement. Could a few simple shifts make the room flow better? Do windows need fresh curtains, or could a coat of neutral paint brighten things up?

Finally, don’t forget curb appeal. A clean garage, trimmed bushes, swept walkways, and sparkling windows make your home feel fresh from the outside in. When your space feels clean and open, buyers can imagine themselves living there—and that’s what helps sell a home faster.