1. Assess your financial situation: Before applying for a mortgage, it's important to evaluate your financial standing. Determine your credit score, calculate your debt-to-income ratio, and review your savings to ensure you can afford the renovations and mortgage payments.
2. Research loan options: Look for mortgage loans specifically designed for home renovations, such as the FHA 203(k) loan or Fannie Mae's HomeStyle Renovation mortgage. These loans provide funds for both the purchase price and renovation costs.
3. Find a lender: Contact different lenders, such as banks, credit unions, or mortgage brokers, to inquire about their loan programs for properties needing significant renovations. Compare interest rates, terms, and requirements.
4. Get pre-approved: Submit your financial documents to the lender for pre-approval. This step will help you determine the loan amount you qualify for and give you a better idea of your budget for the property and renovations.
5. Find a property: Search for Boston properties that require significant renovations. Consider working with a real estate agent who specializes in distressed properties or fixer-uppers. Ensure the property meets your needs and aligns with your renovation plans.
6. Obtain contractor estimates: To determine the renovation costs, obtain detailed estimates from licensed contractors. These estimates will be necessary for the loan application process.
7. Complete the loan application: Submit your loan application to the lender of your choice. Include the property details, renovation plans, and contractor estimates. Provide any additional documentation required by the lender, such as income verification and credit history.
8. Loan underwriting and approval: The lender will review your application, assess the property's value, and evaluate your financial qualifications. This process may involve a home appraisal and inspection. If approved, the lender will provide a commitment letter outlining the loan terms.
9. Closing and disbursement: Once the loan is approved, you'll proceed to the closing process. At closing, you'll sign the necessary paperwork and provide the down payment. After closing, the lender will disburse the funds for the property purchase and renovations, typically in stages as the work progresses.
10. Begin the renovation: With the loan funds available, you can start the renovation process. Work closely with your contractor to ensure the renovations are completed according to plan and within budget.

Remember, it's essential to consult with professionals, such as mortgage brokers, real estate agents, and contractors, throughout the process to ensure a successful and well-executed renovation project.

For further information, you may refer to the following resources:

• HUD's FHA 203(k) loan program
• Fannie Mae's HomeStyle Renovation mortgage

I hope this information helps you navigate the process of obtaining a mortgage for a Boston property that needs significant renovations!