Working backwards when buying a home:

When would you ideally like to be in a house? A normal timeframe from contract acceptance to closing is 30-45 days. But, before this, you have a financing pre-approval process, deciding on a buying agent, and then the actual viewing of homes. On average most buyers will see homes for 2-6 weeks before getting one under contract. So if you want to be in a house in a few months, the time to get started is right now.

If buying a home is in your near future, even six months to a year away. It’s never too early to start the conversation with one of your favorite real estate agents. The sooner we connect, the sooner we can create a plan to help you achieve your home goals. That way, when you find THE ONE, you’ll have all your ducks in a row so we can work on writing up your offer!

Now that you understand why it’s essential to work backward, it’s time to think about what’s next! Here are a few things to take care of and consider before we start searching for your dream home together.

Financing Pre-Approval:

Once you’ve decided you’re ready to stop renting or living with friends or family, then you’ll want to get ready for the pre-approval process as this will be needed when we go to write an offer on a property. Many agents, like ourselves, can give you our trusted lender referrals to begin the “pre-approval” process. This is where a lender will have you fill out an application to better understand your financial situation and get you pre-approved. Your agent will then help you find a home that fits your pre-approval situation.

Buyer Closing Costs:

Something else to consider when buying a home are closing costs. Many buyers are surprised to hear how much closing costs are when purchasing a home with financing. On average, in the Twin Cities market, we typically see closing costs between $10,000-$15,000 when purchasing with a conventional loan. These are comprised of title company fees, lender fees, and any prepaid items. Now, this varies depending upon a number of factors, but closing costs are in addition to your down payment so make sure you understand just how much money you need for your down payment and closing costs. If you don’t have money for both closing costs and the down payment, don’t sweat, there are ways to include them as part of your offer.

Down Payment:

There is a huge misconception about what you will need for a downpayment when buying a home, as many people believe you have to have 20% down, which isn’t true. There are many different loan programs, so connecting with a lender is essential to help you figure out the best options. We’ve seen clients put as little as 3%-5% and even 0% down with VA loans and physician loans. Now that we’ve established some key pieces that will help you determine if you are ready to move forward, let’s get your home search started! As always, reach out if you ever have any questions at all regarding buying a home in the Twin Cities area.

Contact us below to set up a quick buyer consultation. Cheers!

Let's Connect