A Checklist for Buying a New Home in Minnesota

So, you've decided to buy a new home in Minnesota. Great! What next? This is a question which many first-time home buyers struggle with. After all, buying a house isn't as simple as swiping your credit card. There are many steps which you need to complete before a home belongs to you, and navigating all of these steps can be confusing and stressful.

Working together with a reliable team of realtors can make the home buying process much easier but it's still good to go in with a plan. Before you start touring homes-for-sale in Minnesota, read through this home buyer's checklist to make sure that you understand every step you'll need to take.

Step-by-Step Home Buying Checklist

1. Calculate Your Budget - Buying a house in Minnesota is one of the most expensive purchases that you'll ever make. Before you even start looking, make sure to determine your budget so that you can stick to touring houses in your price range. This will prevent you from getting your heart set on a house that's just too expensive for you to afford.

2. Gather Your Down Payment - It's up to you how much of a down payment you want to make on a home. If you'd like to avoid being charged private mortgage insurance (PMI), you'll probably have to make a down payment of at least 20% of the home's total value. Don't drain your bank account to do so, either; you'll need to keep paying a monthly mortgage after you've moved in.

3. Hire a Real Estate Team - Once you know your price range for homes in Minnesota and you've gathered a down payment big enough to place on one, it's time to bring in a real estate agent; or, better still, a whole team of them! Real estate agents will be your best friends in the home buying process, helping you to work through every remaining step on this checklist.

4. Find a Mortgage Lender - While you'll need to finance a down payment from your own funds, you can pay the rest of a house's price with a loan from a mortgage lender. After this, you'll need to provide monthly mortgage payments to that lender. If you want to make certain that you'll be approved for the mortgage you need to purchase a home, you may want to apply for mortgage preapproval with one or more lenders.

5. Visit Homes on the Market - With all the preliminary work completed, it's time for the fun part: choosing your new home! Your realtors can help you tour homes on the market which fall within your budget in areas which appeal to you. Between private showings, open houses and even virtual tours, you can select the house in Minnesota which will perfectly meet your needs.

6. Make an Offer - Once you've settled on a house, it's time to negotiate a price. The seller will have an asking price but it's up to you whether you want to make an offer at, above or below that asking price. It may be tempting to place an offer below the asking price but making a bigger offer will also win you favor with the seller, and Minnesota is a seller's market. Your real estate team can advise you on the best price to offer.

7. Schedule an Inspection - Just because a home looks perfect doesn't mean that it is. Before you buy a home in Minnesota, it's vital to schedule a home inspection to make sure there aren't any problems with the house which weren't readily apparent. Inspections can uncover potentially costly issues such as crumbling roofs, leaking pipes and pest infestations.

8. Close on Your New Home - Once a buyer accepts your offer, the house is yours… almost! Now all you have to do is close. Be sure to bring the proper documentation and your checkbook to cover all closing costs. Now you just have to fill out a whole bunch of paperwork with the help of your real estate agent. After closing is complete, congratulations: you're the owner of a home in Minnesota!

The Twin Cities' Most Trusted Real Estate Team

Working closely with a reliable real estate team can help you to check off every item on this list as quickly and easily as possible. Connect with Chris Fritch Team at eXp Realty today for all the help you need with buying a new home in the Twin Cities metro area!