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Before buying your first home...

• Prepare for Home Ownership
  Pre-purchase homebuyer education is designed to prepare first-time homebuyers to make informed choices about homeownership.  You will learn who the housing professionals are and their roles, about the various loan products and assistance programs, and the responsibilities of owning a home.  Also, evaluate your needs to determine the right type of house for you.  Minnesota Housing requires completion of Qualified Homebuyer Education for most loans but recommends for all first-time homebuyers.  Search for Class Opportunities
• Decide What You Can Afford
  A housing counselors can help you with this step.  Determine your income and expenses, develop a budget or spending plan, and address credit issues or other barriers to home ownership.  Remember to budget for home maintenance and repairs.  Based on this information, decide what monthly payment you can afford.  This is also the time to consider your downpayment needs and what you'll need to save. 
• Find the Right Lender
  Throughout the homebuying process you will work closely with your lender.  Choose one that understands your priorities.  You may also get pre-qualified, which means that the lender calculates an estimate of the maximum loan that you can borrow.  No application is taken, and there is no cost. Once you are ready, a lender will also pre-approve you, which is applying for a loan and receiving an approved loan amount before you have a purchase agreement.  You typically pay a fee to the lender and the approval is good for a specific period of time.
• Find the Right Home
  Before starting out, make a list of your wants vs. needs so you'll know what to look for when you search for and examine various homes for sale in a variety of neighborhoods and communities that fulfill your needs.  You may or may not enlist a real estate professional to assist you through this process.

• Make an Offer
  Negotiating and preparing a purchase agreement involves writing a contract that commits the home buyer to purchase a house at a specific price and under specific terms.  Your first offer is not always accepted so be prepared to work with the seller toward a final offer.
• Obtain a Professional Home Inspection
  This inspection provides you with a full assessment of the physical condition of the house and its various systems.  Most offers are contingent on the results of the inspection.
• Apply for a Mortgage Loan
  If you have not been pre-approved, you will now apply for a loan.  There are a variety of financial institutions as well as loan products with different interest rates, loan terms, and costs.  Shop around for the loan that is right for your financial needs.  Minnesota Housing offers below market, fixed-rate 30-year loans, which is the product of choice for many first-time homebuyers.  Just as you must qualify for the loan, the property must qualify as well.  Title searches, survey, and appraisals ensure that the property will meet the conditions of the loan.
• Purchase Home Owner's Insurance
  This insurance reimburses you for losses that result from damage to your home.  It also protects you against liability from injuries to other people that may occur on your property.
• Close on Your Loan
  This is the final step in purchasing your home.  Documents are signed, closing costs are paid, and the title is transferred from the seller to you.
• Move Into Your Home
  Plan for expenses related to moving including moving vans, utility hookups, and basic household items you may need to purchase for your new home.
• Maintain Your Home Ownership Obligations
  Besides financial obligations, you will have maintenance and repair obligations that will keep your home in good condition.  Learn how to operate and maintain your home efficiently to save you money and increase the value of your home.

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