Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by our team will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
Notice we said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.
Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when it costs you nothing for agents like us to take much of the stress off your shoulders? Not only will we help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but we also have knowledge of the market that you don’t possess. Finding the perfect home can be a daunting task, this is where our expertise and wealth of knowledge come into play. Let us show you around some homes that meet your dream home criteria so you can find the one that's right for you.
This should be the most enjoyable step of the entire process (other than moving in!). We will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. We will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
We were so pleased to work with Lynn on the sale of our condo in downtown Minneapolis as well as the purchase of our new home in Orono. With her expertise, she helped us with staging, market trends, go-live recommendations, and...
Lynn started working with us well before we put our house on the market. She listened to our goals for pricing and timing, and kept close tabs on the market so that she could advise us on the best time to list. After that, I fe...
I was fortunate enough to work with Lynn twice over the last four years. Lynn was seller's agent when I purchased a condo in downtown Minneapolis and based on the interaction I had with her, she was the first agent that I reach...
Lynn was the ultimate professional while helping Susan move downtown. She was always available, quick to communicate articulately, and just plain nice. She gave excellent advice, especially when hard decisions needed to be made...
Lynn was nothing but exceptional in helping me find and purchase a new home. She was quick to respond to my questions, especially being a first-time home buyer. With her knowledge of the surrounding area, it only took a month o...
Lynn recently assisted us with the purchase of our North Loop condo. Lynn was great at showing us all the downtown Minneapolis condo options before we decided on the North Loop. We would highly recommend Lynn. Very patient, ver...
Lynn is highly proactive, efficient, and personable. enjoyed my time with her. She knows her business and the area thoroughly. Her insights helped me make a confident decision on my home purchase. Lynn really made things quick ...
There is nobody better than Lynn Burn. We have bought and sold many homes and Lynn is the best. She was our strong advocate, conscientious, exceptionally responsive, and with strong local real estate knowledge. She made sure we...
Lynn did a great job representing us in our condo purchase. Even an easy transaction isn't easy when it comes to real estate. Lynn's knowledge, experience, and tenacity helped us not only find our home but also ensure we got th...
Lynn was absolutely great to work with. Always accessible, gave us good suggestions, with prompt response to all our inquiries.
Lynn perfectly met my needs. She was and continues to be accessible, and I am very happy with the condo I bought.
It was great working with Lynn. Lynn's knowledge of the downtown market is unparalleled. I'm a detail oriented person and really appreciated Lynn's ruthless attention to detail and quick response time to everything throughout...
We LOVED working with Lynn Burn! Lynn helped us prepare and launch the successful sale of our downtown Minneapolis condo in the best way. Lynn kept it real, shared her vast market knowledge, helped manage our expectations, s...
Lynn was wonderful to work with while selling my DT condo. She is an expert in her field! She kept me informed every step of the way and helped with the last-minute 'fixes' that always come up. She was available whenever I re...
[Lynn] carried out this transaction in a very expeditious manner. She answered clearly all of our questions and it was a very smooth transition.
It was great working with Lynn. Lynn's knowledge of the downtown market is unparalleled. I'm a detail-oriented person and really appreciated Lynn's ruthless attention to detail and quick response time to everything throughout ...
My husband and I appreciate the professionalism, timely communication, and personalized experience we received from Lynn Burn and the entire Compass team. Lynn [and Sam] helped us find a home in a challenging market and did ...
We’ve known Lynn Burn for many years since she helped us purchase our Mpls Condo when relocating from Calabasas, CA. She is a meticulous professional as she walks you through all phases of a real estate transaction. She’s wise ...
I was most impressed with Lynn's depth of knowledge and understanding of the market. Also, she was incredibly patient throughout this process that is sometimes very bumpy. And finally, she went above and beyond the specific res...
We appreciate all the help we received from Lynn while buying a cabin. She answered all our calls and texts with fast responses. She was able to connect with other realtors and get appointments set up to see properties on short...
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