How to buy a house in the Twin Cities
Home ownership in Minnesota is one of the highest in the country thanks to very good down payment assistance programs.
If you’re looking to buy a house in the Twin Cities, you need to be prepared for the entire process. If you’re a first time buyer, the experience can be overwhelming.
If you don’t know where or how to begin, start with the top 4 below.
1. Learn About Mortgages
Buying a house is a serious financial transaction that could tie up your money for decades. For this reason, it is important to learn as much as you can about mortgages. Start with “how to qualify for a mortgage”. This will tell you about down payments, credit reports, amortization and other requirements needed to buy a house.
Learning about mortgages is important because during a typical 30-year mortgage, buyers could end up paying more in interest than in principal. With this in mind, your interest rate has a big impact on what it costs to own your home compared to the actual price of the house. Understanding mortgage rates and interest is a must.
2. Check Out The Area
Since you are going to be spending a lot of money on the house, it is important that the property is located in a good neighborhood. If you are planning to have a family or have a family already, the area should be located in a neighborhood with good schools. It should also have family-friendly restaurants and be convenient to groceries, shops and highways.
The style of your house is also important. Single and busy people tend to gravitate towards buying condos and apartments compared to single family homes. Knowing what style or type of house you want to buy will help you narrow down your choices of houses in the Twin Cities area.
3. Get Finances In Order
Serious home buyers should also have their finances in order. Generally speaking, if you’re ready to buy a house you should already know your credit score; have a down payment ready and documentation available to make the loan process easier. According to Realtor.com, below is a list of documents that you will need to apply for a mortgage
- W2 form (previous 2 years)
- Proof of current income
- List of Assets
- Complete List of Debts (credit card, student loans, car loans, child support, etc)
- Social security number
Documentation requirements vary from lender to lender however these 5 general requirements are usually needed to secure a loan.
4. Start Shopping
Generally speaking, prospective home buyers have an idea of what kind of home they want to buy and the house that they know they can afford. It is important to keep these in mind when you start shopping for your house.
You can start your shopping experience by checking out houses for sale on real estate websites like Trulia and Zillow. This will give you an idea of the houses available in the area. You can also contact a real estate agent to help you find homes that fit your budget. Realtors have a vast network of connections and can help you choose a house that you can afford.
Buying a house can be a fun especially if you prepare for it. Learning as much as you can about buying a house in the Twin Cities can help you avoid common pitfalls and mistakes. It will also help you to strategize so that you can buy the house with the best value.
Gold Path Real Estate is your local residential real estate company in the Twin Cities with an experienced team of people who are knowledgeable in a wide variety of real estate situations. Call today at 612-758-0071 to discuss your specific real estate needs.