Your Home Buying Guide

Before you browse a single listing, ask yourself these questions honestly:

• Job stability: lenders want at least 2 years of employment history. Gaps or recent career changes can complicate approval.
• Credit score: most conventional loans require 620+. FHA loans allow as low as 580. The higher your score, the better your rate.
• Savings: you'll need a down payment (3–20%), closing costs (2–4%), and a cash reserve after closing.
• Timeline: buying a home takes 30–60 days from accepted offer to closing. Plan your lease accordingly.
• Long-term plans: generally, buying makes financial sense if you plan to stay at least 3–5 years.

Your budget has two components: what the bank will lend you, and what you can actually afford comfortably. These are often very different numbers.

If 3-20% down still feels out of reach, down payment assistance programs through Minnesota Housing and county HRAs cover more buyers than most people assume. There's a quick way to check what you might qualify for further down this page.

A pre-approval letter is expected in the Twin Cities market, especially in competitive situations. Without one, some sellers and their agents may not take your offer as seriously, and it can slow things down while you scramble to get one once you've found a house.

What lenders look at

• Credit score and history
• 2 years of W-2s or tax returns
• Recent pay stubs (last 30 days)
• Bank statements (last 2–3 months)
• Debt-to-income ratio

Your agent is one of the most important people in your home buying journey. More than credentials or years in the business, what matters most is whether they listen to you, communicate clearly, and genuinely prioritize your goals over a quick close.

Questions to ask every agent you interview

• "How do you prefer to communicate, and how quickly can I expect responses?": In a fast market, availability matters more than a long resume.
• "How would you approach finding homes that fit my specific needs?": You want someone who listens first, not someone who shows you whatever is available.
• "How do you help me understand whether a price is fair?": A good agent walks you through the data. You should never feel pressured to make an offer you don't understand.
• "How do you get paid, and is there any cost to me?": Buyer's agents are typically paid by the seller. With post-NAR settlement rules, get clarity upfront.
• "What happens if I'm not ready to buy right away?": The right agent is fine with your timeline. The wrong one creates urgency that benefits them, not you.

What to look for, and what to avoid

Dedication matters more than a long track record

A newer agent who is fully committed to your search (highly responsive, deeply knowledgeable about the local market, and treating your goals as their priority) will often outperform a high-volume agent managing 20 other clients. Ask how available they'll be for you specifically. Trust your gut about whether you feel heard.

A buyer's agent who has done the work to understand today's market, who answers your calls, and who advocates hard in your negotiation is worth more than one with a long list of past closings but little bandwidth left for you.

Buyer's agent vs. listing agent: know the difference

A buyer's agent works exclusively for you. A listing agent represents the seller. If you call the number on a yard sign, that agent works for the seller, not you. Having your own representation is typically paid for by the seller as part of the deal, though compensation is negotiated case by case now rather than set by a fixed rule. Either way, it protects you throughout the process, and you shouldn't feel like you can't afford your own agent.

Zillow and Realtor.com are good starting points, but the data is often 24 to 48 hours behind the MLS. By the time you see a home online, it may already have offers.

Twin Cities Neighborhoods at a Glance

In the Twin Cities, well-priced homes in desirable neighborhoods routinely receive multiple offers within 48–72 hours. Being prepared is everything.

What goes into an offer

• Purchase price: based on comparable sales, not emotion
• Earnest money: typically 1–2% of purchase price, shows you're serious
• Closing date: usually 30–45 days out
• Contingencies: financing, inspection, appraisal
• Pre-approval letter: always attached

Once your offer is accepted, two critical events happen before closing: the inspection and the appraisal.

Minnesota-Specific Inspection Red Flags

• Radon: very common in Minnesota. Anything above 4 pCi/L warrants mitigation (typically $800–$1,500 and very effective).
• Foundation cracks: horizontal cracks are serious. Vertical hairline cracks are common and often minor.
• Roof age: MN roofs typically last 20–25 years. Near end-of-life is a negotiating point.
• HVAC age: furnaces last 15–20 years. A/C units 10–15. Budget accordingly.
• Electrical panels: Federal Pacific or Zinsco panels are safety concerns worth addressing.

Closing is the final step: you sign the paperwork, funds are transferred, and you get the keys.

Before closing

• Final walkthrough of the property (usually same day or day before)
• Review your Closing Disclosure: a line-by-line breakdown of all costs
• Wire your closing funds or bring a cashier's check
• Bring a valid photo ID

At the closing table

• You'll sign approximately 40–50 documents
• Takes 60–90 minutes, usually at a title company's office
• Seller may or may not be present, often separate signings

Congratulations, you own a home. Here's what smart homeowners do in the first 90 days:

• Change all locks: you don't know who has copies of the old keys
• Locate your shutoffs: water main, gas, electrical panel. Know how to use them before an emergency
• Set up automatic mortgage payments: a missed payment hurts your credit fast
• Create a home maintenance calendar: HVAC filter changes, gutter cleaning, etc.
• Build a home repair fund: 1% of home value per year is a good rule of thumb
• File for homestead exemption: in Minnesota, this reduces your property tax. Deadline is December 1 for the following year. It's a simple form.