First-Time Home Buyers

Buying your first home is exciting, and it’s normal to have a hundred questions. Here’s how we walk first-time buyers through it, one step at a time. You don’t have to remember all of this. That’s what we’re here for.

1. Figure out your budget

Start with a conversation with a mortgage lender. Share your income, debts and savings, and they’ll give you a ballpark of what you can borrow. That’s often called pre-qualification. Just as important: decide what monthly payment you are comfortable with. That number can be lower than what a lender will approve, and that’s okay.

2. Get pre-approved

A pre-approval goes a step further. You actually apply, the lender checks your credit and paperwork, and you get a letter showing what they’re willing to lend. Sellers take offers more seriously when a pre-approval letter comes with them, and you won’t lose your heart to a home that’s out of reach. Ask your lender about down payment programs too. Minnesota Housing offers programs for first-time buyers through participating lenders.

3. Make two lists: must-haves and nice-to-haves

Must-haves are the deal-breakers: the number of bedrooms, a reasonable drive to work, main-floor living if stairs are a problem. Nice-to-haves are the extras: a finished basement, a fireplace, a three-stall garage. Most first homes don’t check every box, and that’s fine. The lists keep you focused on what really matters to you.

4. Have your own agent

The listing agent works for the seller. A buyer’s agent works for you. In Minnesota you’ll sign a written buyer representation agreement with your agent before touring homes, so you’ll know exactly what we do for you and how we’re paid. We explain it all before you sign.

5. Tour smart

Seeing several homes in one day can blur together fast. Take photos and a few notes at each one. Picture the rooms empty and with your own furniture. Notice the light, the layout, the noise and the neighborhood. Drive by again at a different time of day if you’re serious about a place.

6. Think with your head, too

It’s easy to fall for fresh paint and great staging. Ask yourself: does this home actually fit my list? There will be other houses, so don’t let a rush push you into one you’ll regret.

7. Protect yourself in the offer

We’ll talk through which contingencies make sense for you, like an inspection contingency and a financing contingency, and how they affect your offer. Then hire a professional home inspector. In Minnesota it’s also smart to think about a radon test, and if the home has a private well or septic system, inspections of those.

8. Do the final walk-through

Right before closing, walk the home one more time. Make sure agreed repairs are done, everything that’s supposed to stay is still there, and nothing new has gone wrong.

It’s a lot, we know. That’s why we keep track of every date, form and detail for you. Reach out any time, even if you’re just starting to think about it.