Home Buying Tip - Prepare to Buy Home in Minneapolis St Paul
Decide how much home you can afford. Generally, you can afford a home equal
in value to between two and three times your gross income.
Develop a wish list of what you’d like your home to have. Then prioritize
the features on your list.
Select three or four neighborhoods you'd like to live in. Consider items
such as schools, recreational facilities, area expansion plans, and safety.
Determine if you have enough saved to cover your down payment and closing
costs. Closing costs, including taxes, attorney’s fee, and transfer fees average
2% - 7% of the home price.
Get your credit in order. Obtain a copy of your credit report.
Determine how large a mortgage you can qualify for. Also explore different
loan options and decide what's best for you.
Organize all the documentation a
Minnesota mortgage broker will need to preapprove you for
a Minnesota home loan or mortgage.
Do research to determine if you qualify for any special mortgage or down
payment assistance programs.
Calculate the costs of home ownership, including property taxes, insurance,
maintenance, and association fees, if applicable.
Find an experienced Real Estate Agent who can help you through the process.
Minneapolis Homes, Townhomes, Lofts, Condos
Start by shoring up your credit. Since you most likely will need to get a
mortgage to buy a house, you must make sure your Minnesota credit score is as
high as possible. A few months before you start house hunting, get copies of
your credit report. Make sure the facts are correct, and fix any problems you
Buy in a district with good schools. In most areas, this advice applies even if you
don't have school-age children. Reason: When it comes time to sell, you'll learn
that strong school districts are a top priority for many home buyers, thus
helping to boost property values.
Get professional help. Even though the Internet gives buyers unprecedented access to home
listings, most new buyers (and many more experienced ones) are better off using
a Minneapolis real estate agent. Look for an exclusive buyer agent, if possible,
who will have your interests at heart and can help you with strategies during
the bidding process.
Before house hunting, get pre-approved. Getting pre-approved will
you save yourself the grief of looking at houses you can't afford and put you in
a better position to make a serious offer when you do find the right house. Not
to be confused with pre-qualification, which is based on a cursory review of
your finances, pre-approval from a lender is based on your actual income, debt
and credit history.
Do your homework before bidding. Your opening bid should be based on the sales
trend of similar homes in the neighborhood. So before making it, consider sales
of similar homes in the last three months. If homes have recently sold at 5
percent less than the asking price, you should make a bid that's about eight to
10 percent lower than what the seller is asking.
Hire a Minneapolis Home Inspector.
Sure, your lender will require a home appraisal anyway. But that's just the
bank's way of determining whether the house is worth the price you've agreed to
pay. Separately, you should hire your own home inspector, preferably an engineer
with experience in doing home surveys in the area where you are buying. His or
her job will be to point out potential problems that could require costly
repairs down the road.
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