A successful first home purchase starts with a realistic budget, a clear search strategy and an understanding of how representation and the purchase contract work.
Before house hunting
1. Speak with more than one lender about financing options. 2. Budget for taxes, insurance, maintenance and closing costs, not just principal and interest. 3. Define which features are essential and which are flexible. 4. Research specific neighborhoods and commute patterns. 5. Check your credit report and avoid major financing changes without consulting your lender.
When you find a home
6. Review disclosures and available property information. 7. Consider inspection and financing protections carefully. 8. Evaluate recent comparable sales rather than relying only on asking price. 9. Ask your agent to explain the written buyer-representation agreement, including services, duration and negotiable compensation. 10. Plan for appraisal, closing and post-purchase reserves.
A note on compensation
Buyers and sellers may negotiate brokerage compensation; do not assume that buyer representation is free or automatically paid from the listing brokerage commission.
For property-specific guidance, contact Midwest Realty of Minnesota, a Minnesota-licensed real estate brokerage, at 651-472-4012. This article provides general information, not individualized legal, lending or tax advice.