How to Buy a House in Minneapolis/St. Paul

So, you want to commit to a life in the Twin Cities?

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You’re not alone, as the vibrant neighborhoods and amenities in Minneapolis/St. Paul tend to convince people to make their home here. Continue reading for advice about how to buy a house in Minneapolis/St. Paul.

Figure Out Your Financials

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Buying a house is a massive financial commitment. For many people, purchasing a home is their most important lifetime investment. Fortunately, you can take steps towards home ownership before you even start touring properties to help make sure that you can afford that perfect house when you find it.

Save Money for a Down Payment

Traditionally, a buyer puts down 20% of the purchase price as a down payment. However, there are many low and no down payment home loan programs available to qualified borrowers. For example, VA loans are available with no down payment to eligible borrowers.

Choose a Lender

Did you know that your bank may not be the best place to get a home loan? A mortgage brokerage, such as Twin City Lending, has access to a much more comprehensive variety of financing opportunities than a bank. The higher number of loan options means that the broker can find a loan that fits your needs and offer a low-interest rate.

Get PreApproved

Once you settle on a lender, it is very beneficial to obtain loan preapproval. A preapproval letter differs from prequalifying because the preapproval is a guarantee from the lender that you will get the house loan unless your circumstances change. The preapproval lets you know how much money you have to spend on your new house. The letter makes a seller take your purchase proposal seriously when you make an offer to buy a house.

Once Approved – Close Your Wallet

Resist the temptation to celebrate your preapproval letter by going on a shopping spree at the Mall of America. The preapproval for your loan rests on your financial status, and it is vitally important that there are no significant changes with your credit before the house sale. It is possible, for instance, that a large purchase (such as new car) could alter your credit rating and cause the lender to decline your loan. Protect yourself by holding off on any significant expenditures until after you get the keys to your new house.

Partner With a Real Estate Agent

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Be kind to yourself and hire an experienced real estate agent to help you purchase your new home. An experienced professional handles all of the details and negotiation involved with buying a house so that you can focus on your future home. Don’t hesitate to share what you want in a house with your real estate agent because, with so many options available in the Twin Cities, your ideal home is within reach.

Find Your Community

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Picking a neighborhood is one of the most exciting parts of house-hunting. The location of a house is almost more important than the house itself when it comes to making a homeowner happy. After all, you can remodel, but you can’t do much to change its location. Take your time and think about the features that are important to you in your future community.

Some important considerations include:

  • -Schools
  • -Parks
  • -Shopping
  • -Availability of housing
  • -Public transportation
  • -Commute

Linden Hills? Robbinsdale? Lynnhurst? Wherever you look, the Minneapolis/St. Paul area contains a fantastic variety of neighborhoods. Each one has its distinct personality, and your goal is to find a space that meets your basic needs, such as good schools, and your character.

It might take some detective skills to uncover the best neighborhood for your family. The internet is an excellent resource for information about the Twin Cities neighborhoods. Don’t hesitate to ask your real estate agent for advice. It’s also a great idea to check around with local family, friends, and neighbors for area recommendations.

Once you find a few exciting areas, visit them. Make sure that you explore each community multiple times at different times of the day. The last thing that you want is to buy a house in a neighborhood based on its peaceful tree-lined streets only to see those same streets jammed with parked cars at night and on the weekend.

Tour Properties

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Are you addicted to the television shows that present the illusion that a buyer only needs to look at three houses? Forget about those shows. Many buyers tour dozens of houses before they purchase one. The decision to buy a home is one of the most crucial choices in your life so take your time to look at all of the options.

It’s helpful to keep an open mind when you begin touring potential homes. Sometimes the three bedroom condo next door to a phenomenal neighborhood park appeals to a buyer who had never considered a condo. Never forget that your goal is to find an affordable house that meets your needs in an area where you want to live.


Living Room

Eventually, you walk in the front door at a house and feel at home. The next step is to write an offer to purchase the property. The proposal includes the details such as purchase price, down payment, and closing date. Purchase offers also contain contingencies that must occur to close the deal. Typical additions include inspections, financing, and a possible rent-back agreement.

The buyer’s power to negotiate with the seller depends on factors like the strength of the real estate market and the relative strength of the buyer’s offer. For example, if houses sell very quickly in a neighborhood, the seller is unlikely to accept a low price offer. On the other hand, a seller might sell a home for a lower price if the real estate market is slow in their area.

In closing, congratulations on your decision to buy a home in the Minneapolis/St. Paul area. The Twin Cities thrive with a multitude of enriching amenities that make life in this part of Minnesota a pleasure. Be sure to contact us when you find your dream home to secure your home loan.

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