The First Time Home Buyers Journey
Buying Your First Home in MN | How to Buy a Home in the Twin Cities
After reading our first post in this series, The First Time Home Buyers Journey – The First Step Begins with 3 Questions; you have answered all of these in the affirmative and are anxious to buy that home! Congratulations on your decision! The enthusiasm is great! Everyone should be excited about buying their first home but let's take a deep breath and think about the following three steps – knowing the market, getting lender approval, and selecting a Real Estate Professional.
The Twin Cities Metro Housing Market
First, let me say that as a first-time home buyer, I have good news for you. Second, let me say, I also have some bad news. Let's start with the good news. Interest rates are the lowest they have been in the last three years. Right now, with excellent credit, it is possible to get a rate as low as 3.5 percent. Want to hear more good stuff? You do not have to have a 20 percent down payment. As a matter of fact, with good credit, you may be able to get a conventional mortgage with only 3 percent down. Recognition is not so good, or do you still need down payment assistance? FHA might be the way to go. So now for the not-as-good news.
The twin cities are a seller's market for anyone purchasing a home under $500,000. The dynamic causing this is far more demand than supply, and the lower the price range, the less inventory of housing you will...