Homeownership in Minnesota
With interest rates low and predicted to go lower this year, many of you are thinking seriously about buying a home. Am I right? Don’t be shy. Raise your hand if you want to buy a home this year. Wow, look at all the potential homeowners!
Your enthusiasm is inspiring! Buying a home in Minnesota is an adventure. However, before you dive into the housing market, you need a plan. Buying real estate is a journey, and the road to homeownership is rarely a straight line from point A to point B. Often the route is a winding mountain road with hills and valleys, twists and turns but worth the effort to reach the top.
Buying a home in today’s market, especially for first-time home buyers, is challenging. But having your path mapped out from start to finish will help you avoid obstacles and delays. Completing each portion of the journey before proceeding to the next will build confidence in the process. Here are my 7 Steps for a successful home buying experience.
1. Organize Your Finances
2. Shop For a Mortgage and Obtain a Pre-Approval
Now it’s time to find a lender. Of course, your first instinct is to secure a mortgage at the lowest possible rate. Don’t get me wrong that is extremely important. But customer service also matters. The variety of programs offered...
Buying a Home in MN Takes a Team
If you have decided to transition from renter to homeowner, you are probably feeling excited and nervous at the same time. That is perfectly normal because it’s a big decision. Some think it is the litmus test for adulthood. While I’m not sure that is true, I will admit that it means taking on a whole new set of responsibilities. Heck by the time I bought my first house, I was already working in real estate but still had the jitters.
While you may find the home buying journey intimidating, thankfully, it’s not a solo adventure. You are going to have lots of real estate professionals helping you along the way. Some of them you’ll interact with regularly and others you will never meet. Yet they will all be doing their part to get you across the finish line. Let me introduce them to you.
The Real Estate Agent
Your agent will scout out homes for you, pointing out the positives and negatives of each one. Once you have found the property you want to buy, he will do a comparative market analysis so you can decide on your offer. He will prepare the purchase agreement and help with the negotiations between you and the seller.
In a nutshell, your licensed real estate professional will answer your questions, provide guidance, make recommendations, advocate in your best interests, provide emotional support, and help keep the whole process of buying your first MN home on track. Your Realtor is a valuable resource...
Numbers to Know Before Buying a Home MN
Recently a friend told me she was never good with finances and never really cared until the day she wanted to buy a home and discovered she didn’t qualify for a mortgage. For her, it was a great wakeup call, and she got up to speed pretty quickly. About a year later, she moved into her condo. Today, she not only knows all her financial statistics, but she tracks them regularly.
So just what are these numbers we should know, and why are they important? As you plan for your future, these vital financial statistics will show you where your finances are healthy and also the areas where your finances need improvement. If your life plan includes buying a home, putting your kids through college, or retiring early, these numbers will be the guideposts along your path.
Before you Buy a Home, Know Your Credit Score
What exactly is a credit score? It a snapshot of an individual’s entire credit history translated into a numeric value. This number is used by lenders to help them determine if you are creditworthy. The score is calculated by FICO (Fair Isacc Corporation) using data provided by the three credit reporting bureaus, Experian, Transunion, and Equifax. In addition to your FICO Score, another commonly used is a Vantage Score.
Why is this score important? Like your shadow, it follows you everywhere. It is not only a major determining factor in getting...
Use a Budget to Control Your Money
When we gain control over our finances, lots of positive outcomes will follow. The door to new opportunities will open to us, and we will have more lifestyle choices to consider. How exactly do we control our money? We set financial goals, and then we monitor our spending, keep a limit on debt, save regularly, and invest wisely to achieve those goals. The very first step on the journey is following a budget.
A Budget is Powerful
A budget is a map we follow on the road to establishing a positive relationship with our money. With a budget, we can better plan how to spend if we know how much we have left after we pay all the bills. When we have a snapshot of our spending habits, we will be more likely to use discrimination in our purchases.
We need a budget because it is critical to keep our financial house in order as we build our future. Budgeting can help you rent and furnish your first apartment, or buy your first home, take a vacation, and begin planning for retirement. (Honestly, it’s never too soon) That is powerful stuff!
We all need a tool to keep track of income and expenses because it’s critical to know where our money goes every month. There is a richness of apps available to help you monitor your finances, such as Mint,...
A FICO Score Explained By MN Realtor
By the time you experience initiation into the adult world, you've probably heard the term credit score. It’s a number you should be concerned about because other’s will be. They will use it to judge your ability to pay back a loan.
So who cares about your credit score exactly? Credit card companies, banks, mortgage brokers, cell phone companies, insurance companies, and landlords, to name a few. Some companies even want to look at your credit score before offering you a job to see how responsible you are.
How is Your Credit Score Calculated
Your credit score is a number that captures your creditworthiness based on your credit history. Three major credit bureaus, Experian, Equifax, and TransUnion, track your financial information. The Fair Isaac Corporation takes this data and uses a model to assign a number known as a FICO score. Most creditors use this score to evaluate you when you apply for a loan such as a mortgage.
Get Ready to Buy A House MN
The decision to buy your first home is a major, life-changing event and should never be taken lightly or made quickly. Not only is it the most significant financial purchase you will likely ever make, but it’s also a commitment to your lifestyle and personal sense of well-being.
Certainly, a home is a valuable asset, but it is much more than a number we see on a financial spreadsheet. It’s our haven. It’s where we plan to raise our children. It’s where we will dream about our future. It’s where we will celebrate our victories and cope with the setbacks of life. There is the whole story of homeownership.
Yes, buying real estate is a big deal, and I won’t lie to you, it can be a stressful and intimidating process, especially for a first-time buyer. However, it isn’t written in stone that it will be this way for everyone. It can and should be an exciting and joy-filled process. Being financially ready is critical in making it work in your favor.
Let’s look at five positive signs that say you may be in the financial position to become a homeowner.
1. Your Finances Are Solid
One of the...
First Time Home Buyer Options in the Twin Cities
It’s an indisputable fact that buying a home today is a complicated process. It can be especially intimidating for a first-time buyer. Also, there is a severe shortage of inventory in the category of entry-level homes making the transition into homeowner a challenge. The home buying process in the Twin Cities Metro is not as simple as searching for a house, finding one that suits you, making an offer and going to closing. Although these are indeed the basics, it is not the complete picture. There are a lot of pesky details that are not understood and become fertile ground for the seeds of mistaken beliefs. The topic that seems to represent the most confusion is obtaining a mortgage. Let’s take a closer look at some of the most common myths about mortgage eligibility.
First Time Home Buyer Mortgages and Myths
Many people still believe you need a 20% down payment to buy a home in MN. No, you don't. Although a buyer needs to put 20 percent down on a home to avoid paying Private Mortgage Insurance, most can buy a house with much less money. When you look at real estate market statistics for home buyers in MN, the medium down payment is actually 10 percent. In addition, the statistics for first time home buyers in the Twin Cities is closer to 5 percent.