The Home Buying Process

90% of buyers today search for homes on a website like this one before ever contacting an agent. They normally develop a list of homes they would like to preview to begin their research, then they click on “request a showing” for one of the properties, an agent is assigned and they are off to the races.

Your real estate is licensed by the State of Minnesota and is required by the state to review and present certain documents to you. They are commissioned salespersons (normally paid by the seller’s broker) and must adhere to a Code of Ethics and follow both state and federal laws and guidelines. They will be your professional guide in the home search, buying, inspection, mortgage and closing process. Most agents have a team of professionals they rely on in the mortgage, home inspection and title areas you will need.

As you are “shopping” for a home at the same time you should begin the process of “shopping” for a loan with a mortgage lender. They will request the information found under “Mortgage” on this website. Your mortgage lender is a key player on your home buying team. They will help you determine how much home you can afford based on many factors. Many buyers can afford a higher monthly payment than they are comfortable in paying. Be comfortable with your monthly payment! We believe it is important to obtain at least two proposals for your mortgage loan.

Your real estate agent should work with you to determine what features like number of bedrooms and baths, location, school district, etc…you are looking for in a new home. They will set up searches to find homes on the market today that meet that criteria and alert you when a listing comes on the market later that meets your needs. All brokerages share their listing with one another on the Regional Multiple Listing Service. They will setup showings and accompany you to view these homes.

When you find the right home it is time to write your purchase agreement with your real estate agent. Make the best offer you can first. Sellers and their agents know what the market is and they are not going to accept a low ball offer. Your agent will advise you about offer price range, earnest money, property inspections, personal property and closing dates (dependent on the type of loan and the needs of the sellers).

Your offer, including your mortgage preapproval or commitment letter will be sent to the agent representing the seller who in turn will present your offer to the seller. The seller can accept your offer, reject your offer, counter your offer or in extreme cases (low ball offers) instruct their agent not to present any future offers from you.