Have Some Pressing Questions?
Whether you’re a first-time home buyer or an experienced real estate investor in the Minneapolis area, it's always a good idea to brush up on your real estate know-how before you begin your home search. There are a lot of moving parts that play into a successful home purchase, so check out our FAQs to get a step ahead of the game.
1. Where Should I Start the Process?
- Your financial situation will set the tone for the rest of your home-buying experience. Before you start your search, you should set a budget and figure out what you'll be able to afford for a down payment. Then, check out our helpful mortgage calculator to see what a monthly mortgage payment might look like for you.
- Once your finances are figured out, start to get to know a little more about the area and the unique neighborhoods.
2. How Do I Know What to Look for in a Home?
- What you want and need in a home is totally up to you. Take some time to think about what features you want, what size of home you need, and where you want it to be located. Knowing what you want in a home beforehand can save you a lot of time in the search process. Once you have things narrowed down, check out our home search tool to find available listings.
- Need some inspiration? Browse our featured listings!
3. Why Should I Use a Real Estate Agent?
- When you use a real estate agent, you won't have to deal with the financial and legal complexities of the Minneapolis area real estate process on your own. We're here to answer all of your questions, translate the confusing jargon, and keep things moving along smoothly.
- A local real estate agent will be an expert on the area and the unique communities it has, so we can provide vital insight into what place might be right for you.
- Once it's time to get the search started, a real estate agent can help you find the right price range for your income and finances and can explain the pros and cons of different types of mortgages.
- As always, we'll also be around to answer all your questions and guide you through the complicated paperwork.
4. Where and How Can I Get a Loan?
- Mortgage loans are typically available through a wide variety of institutions, including banks, credit unions, private mortgage companies, and government state lenders.
- Since we've been working in the area for years, we can point you in the direction of the best lenders in the city. You can also shop for lenders on your own, but make sure you take some time to search around and compare rates. If you're not sure you'll qualify for a loan, local government agencies can help you find out more about programs that might be available to you.
5. What if I Have Bad Credit or No Down Payment?
- Buying a home is expensive, but luckily there are many federal mortgage programs and local home buying assistance programs dedicated to helping you.
- The Federal Housing Administration (FHA) helps home buyers by offering insured loans, meaning if the buyer defaults, the lender will still get their money. Insured loans encourage lenders to work with more buyers regardless of their credit or available down payment.
- Many state and local governments also offer additional programs for buyers who meet various criteria or are buying within individual communities.
- The Department of Housing and Urban Development (HUD) is another resource that can provide many assistance programs to home buyers. Get in contact with them to find out if you might qualify.
6. Once I Find My Home, What Will I Have to Pay Up Front?
- Earnest money: Think of this as the "security deposit" you pay when you submit your offer to prove to the seller that you are serious. After your offer is accepted, it's applied to your down payment or closing costs.
- Down Payment: A percentage of the cost of your home, the overall amount will depend on your loan. Government programs can help you decrease this amount if needed.
- Closing Costs: These are typically low for buyers and represent the fees associated with paperwork and lender charges.
7. What Other Costs Will I Pay?
- Other costs can include utilities, HOA or condo fees, and property taxes—which are all typically included in your mortgage payment.
- Ask your real estate agent about additional fees associated with your particular home, community, or neighborhood!
Still Have Questions?
No worries, just give us a call! We're here to answer any of your home-buying questions about homes for sale and real estate in the Minneapolis area and its many communities.
Feel free to browse the rest of our resources to learn more about how we can help you.