Minnesota First Time Home Buyer Real Estate Blog

What Is the Closing Process Like?

I’m here with the answer to a great question for first-time homebuyers today: How long does it take to close on a home?

Once you’ve found your dream home, how long do you have to wait until you get the keys? There are a lot of different things that happen during the process that you’ll have to get through first. The process starts with you signing a purchase agreement and ends with you getting the keys to your new home. The stuff that happens in between is the closing time frame.

The closing process typically
takes anywhere from 45 to 60 days.

During that time frame, there is an inspection that needs to be done. There are also loan documents that you'll have to get to your lender and an appraisal from the buyer’s lender to support the home’s value. There is also a title company who will do a search to make sure there are no liens or judgments on the property.

The closing process typically takes anywhere from 45 to 60 days. A lot of it depends on the type of financing the buyer has, but that’s a normal window. Getting a closing done in 30 days is tough these days.

If you have any questions for us about the closing process or anything else...

Home Equity And Net Worth: A Quick Overview For First Time Buyers

Home Equity Explained For First Time Home BuyersIn case you haven’t heard, home owners have a shockingly higher net worth over renters, and that gap only continues to get bigger as home values increase. But what’s even more surprising to those who haven’t yet taken the deep dive into home ownership is that this is still the case even as most “home owners” don’t actually own their home outright.

It’s safe to say that the majority of home buyers don’t have the means to pay cash for a home, and that’s especially true for first time home buyers. But taking out a mortgage doesn’t mean you can’t significantly boost your overall net worth, even if you only put down a minimal amount.

As each monthly mortgage payment is made, home owners continue to build more and more equity, which is essentially the difference between what your home or condo is worth and what you still own on it before the home loan is fully paid off. But just what does this mean for you as a soon-to-be home buyer and how can it help you down the road?

More Equity, More Options When It’s Time to Upgrade

The number one advantage to having equity in your home is that you’ll be able to use that money to help fund another purchase if or when it’s time to upgrade. This also means you might be able to borrow...

The Shocking Difference in Net Worth Between Home Owners & Renters

Minnesota First Time Home BuyersChances are that by now, you’re well-aware of all the advantages being a home owner provides, which of course range from enjoying a variety of tax breaks to locking in a monthly mortgage that goes a long way in stabilizing your finances.

But did you also know that the net worth of home owners is well over 44 times greater than that of a renter? That’s right—according to the Federal Reserve’s most recent Survey of Consumer Finances, the median net worth of home owners spiked 15% to $231,400 since the previous report was unveiled back in 2013, while the median net worth of renters actually dropped by 5% to just $5,200.

While it’s true that saving for a down payment and ultimately buying a home for the first time can be a huge hit to your savings, the upside is that simply paying your mortgage each and every month continues to increase the equity in your home, which almost acts as a default savings account.  

So while deducting mortgage interest and property taxes from your annual income and locking in a long-term monthly payment are certainly great reasons to make the transition from renting to owning, home ownership is also one of the best ways to build family wealth, which may just be the greatest advantage of all.


Why Would You Need a Home Inspection?

Today, I have a tip for first-time homebuyers regarding home inspections.

A lot of buyers will consider doing a home inspection when they’re purchasing a home, and it’s crucial for those buying for the first time.

Home inspections are crucial for first-time homebuyers

You should have an independent third party come to evaluate the property to make sure that you’re aware of all of its flaws. Hopefully, that list isn’t going to be too long, but either way, it’s important to know about those items before you close on the house.

A home inspector is typically a professional who will spend between two and four hours taking photos and testing various systems and appliances, looking for red flags. Sometimes, the inspection will turn up details that require further inspection, such as a faulty furnace or an issue with the electrical or plumbing. These further evaluations will be done by an independent contractor.

Inspections typically take place within the first five to 10 days after you sign a purchase agreement. The costs are paid upfront, and can run anywhere from $200 to $700 depending on what you’re having done. Talk to your agent about what the typical cost of an inspection is for the home you’re purchasing....