What are the steps to buying a home? There are so many steps when it comes to purchasing a home. We know it's a very important decision! This article provides a quick summary of the home buying process in Minnesota:
Getting pre approved for a mortgage:
Fill out a bank application.
Tax Returns
2 last pay stubs
Bank statement
Once we have a pre approval letter:
1- Shopping for homes.
2- Once we find the home of your choice we make an offer, sellers may take a few days to respond.
3- The Real Estate Market in MN is very competitive. Most homes are in a multiple offer situation. If sellers receive more than 2 offers they will call for “Highest and Best offers”. In this case, buyers submit offers above list price with the best terms. We will take a look at the home value in the area and make sure the home is worth offering more.
4- Closing estimated timeframe is between 30-45 days. Sellers and buyers may agree in a specific closing date. Once we have an accepted offer buyers must send an earnest money payment. This amount is part of the purchase price and will be added to buyers’ costs at closing. We encourage buyers to offer as much earnest money as possible to make the offer more attractive.
5- Inspection contingency period is typically between 5-7 days, or as agreed by buyers and sellers. We always encourage buyers to have a home inspection. The inspection is paid by the buyer and has an estimated cost between $360-$460, depending on the square footage of the home.
6- Once the inspection is completed we will review the inspection findings. If repairs are needed, we proceed to negotiate.
7- Completed the inspection period, the bank will schedule the Appraisal to confirm the price of the home and give us the approval for the final loan amount. You will have the option to receive a copy of the appraisal report.
8- After appraisal is completed we wait for closing day.
We highly recommend using electronic signatures during the whole process. This way we can ensure no delays. For the closing paperwork we work with Legacy Title and RG Title.
The home buying process can be stressful and confusing at times. We are here to make it easier and take care of everything needed. We want you to be able to enjoy this special time! I am always available to help and answer all of your questions.
Thank you,
Maria Susana Huntwork
Realtor
Realty Group, Inc.