To begin your home search, it's important to determine your budget. One crucial step towards this is obtaining a mortgage pre-approval, which can be done early on in the process. This will not only enhance your bargaining position when making an offer but also enable you to concentrate on properties that fall within your price range. To obtain a pre-approval, consult with a mortgage specialist or your bank, who will evaluate your current financial status and approve you for a mortgage within your financial means. Typically, this pre-approval will remain valid for 120 days.
Here are some tips for obtaining pre-approval:
It's crucial to be aware of the various costs associated with purchasing a home, as they can accumulate rapidly in addition to the purchase price. Don't worry, though! We've outlined the typical costs for you to ensure that you're well-informed and prepared:
In the Twin Cities Area, deposits are typically 3-5% of the purchase price and must be readily accessible in an account, with payment due within 48 hours of offer acceptance. Depending on your qualifications, there are several local and county programs that give down payment assistance that is paid back over time. In some instances, the assistance may be completely forgiven!! Deposits are included in your total down payment and are applied to your balance owing on the purchase price at closing.
Closing costs, which are not included in your mortgage, typically amount to 1-3% of the final purchase price. They include:
To create your wish list for a property, there are numerous factors to take into account. These are some of the key areas that our clients usually consider:
House, condo, townhome, multi-family or investment property.
Affordability: What is your budget, and how much can you realistically afford?
Where do you want to live? Consider the neighborhood, proximity to amenities, and nearby schools.
When do you want to move in? Do you need to consider factors such as school schedules or existing lease agreements?
How important is it for you to have easy access to public transportation or highways?
What type of lifestyle do you lead, and what kind of property would suit your needs? For example, do you need a home office or a backyard for your children or pets?
What amenities are important to you, such as a gym or swimming pool?
Do you need parking, and how many spaces do you require?
We provide you with access to data streamed directly from the MLS(Multiple Listing Service). You can search for properties in real-time from any device. You can easily communicate with us to comment on listings or request showings. It's user-friendly and instantaneous, similar to your favorite social media tools, allowing you to like, comment, save, and share listings effortlessly.
We understand how busy life can be, and we respect the value of your time. That's why we'll assist you in narrowing down the best 5 to 8 properties to preview that meet your criteria, so you don't waste your time. You have the option of previewing these homes in person or virtually.
We'll keep track of the homes you view and provide honest feedback on each one. You'll have the opportunity to rate each property on a scale of 1 to 10. Your ratings will usually result in the following outcomes:
• 8-10 = submit an offer
• 7 = potential offer
• 1-6 = no offer
When you’ve found the perfect property, it’s time to make an offer. In today’s competitive market, there are various strategies used by sellers to accept offers. Many properties are sold in multiple offers or through pre-market offers. When submitting an offer (Agreement of Purchase and Sale), there are a few key components to consider:
The amount you are willing to pay, which may be the final amount or the starting point of negotiations.
Terms necessary to protect you through the purchase process that must be included in your offer.
The date you will pay for and take ownership of the property.
EARNEST MONEY DEPOSIT
Typically 1% (or more and is negotiable) of the purchase price and is payable by bank draft or certified check within 48 hours of offer acceptance.
Clauses that the buyer must waive or fulfill by an agreed time in order for the sale to be finalized. The most common conditions are financing, inspection, clear title work and valid appraisal.
CHATTELS AND FIXTURES
Items that are included or excluded from your offer, also known as inclusions and exclusions.
When all parties have negotiated and accepted your offer, you will have a conditional or firm sale. If the conditions have been fulfilled according to the agreement, your sale will remain pending until the Closing/Completion Date. To facilitate the closing of your property, you will need a title company. We suggest that you contact the title company at least 30 before your closing date to ensure that everything is in order and to arrange a date and time for signing all paperwork (which can be done virtually), as well as where and when to pick up keys for your new home, etc.
On the day of closing, you will show up at closing to sign all of the documents needed to facilitate the sale. You will receive all keys, garage door openers, mailbox keys, and security codes needing to be reset. According to the contract, occupancy is typically immediately after closing.
Congratulations on your new home! 🎉