Minneapolis, MN: As we start to enter the spring home buying season here in Minnesota, I have one big tip for first time home buyers.
Buying now makes sense. If you have OK credit, a little bit of money for down payment, and you've been successfully renting for a year or two, you are ready to buy now. With the combination of affordable housing prices and low mortgage rates, there has never been a better time to become a home owner.
First Time Home Buyer Tip: Talk to a Loan Officer FIRST.
Most people do it wrong. They start looking at homes on the internet. Then they contact a Real Estate Agent and start looking at homes. Seems logical, but wouldn't it make more sense to know if you can even get a loan, how much you can afford, what down payment is required, and what purchase prices you can qualify for first?
With that knowledge in hand, now you can start looking for homes you know you can afford, what the payments will be, and what loan programs would work best for you.
I feel bad when people have already found a dream home, only to be told for various reasons they cannot buy it. Don't let this happen to you. Get pre-approved with a local mortgage broker BEFORE talking to a Realtor.
Not only does it make sense, but your Real Estate Agent will appreciate that fact you are pre-approved so they can immediately focus on providing the best service to you without slowing things down while you get approved. Or, worse yet, having to completely refocus the search because of newly discovered information from a mortgage lender.
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