If you’re considering an investment in Minnetonka real estate this year — and you are a first-time home buyer — you may have a lot of questions. Buying a home involves a number of considerations and decisions that include determining your budget, financing, timelines, and personal lifestyle preferences. If you decide that you’re ready to purchase a home, follow the advice for first-time home buyers below.
Know your bottom line
Before you get started, determine your budget and financing options.
Learn what you can afford
To determine your budget, learn what maximum monthly payment you can afford, be sure to include the projected property taxes and homeowner insurance costs. Use an online
affordability calculator to determine how your costs measure up to your annual income. You will also need to keep in mind the other costs associated with home ownership. If you are purchasing a condo, for example, there may be association dues. If you are looking into properties with acreage, consider the added costs of maintenance and upkeep.
Decide on the financing
As you explore financing options, make sure that your credit score is strong and take the necessary steps to improve it. There are different types of mortgages to consider, including conventional mortgages with 15-year or 30-year payment plan options. Learn about the current interest rates and how they will affect your financing and payments.
Also set your down payment amount; the minimum amount required may vary across different lenders and will depend on your credit score. Check to see if you qualify for a
homebuyer assistance program for additional help with down payments and closing costs.
Get a pre-approval letter
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Once you have established your financing, take the time to get a pre-approval letter from a lender. This indicates your ability and resources to purchase a home. Most sellers want to see this letter before moving forward with a sale, so getting this early will save valuable time. This also allows you the flexibility to make an offer as soon as you locate the house of your dreams.
Know what features you want in a home
With your budget and financing in place, consider exactly what you are looking for in your new home.
Think about your lifestyle
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The city of
Minnetonka offers its residents the benefits of suburban living, along with easy access to outdoor recreation and other amenities. Many of the homes here are spacious, situated on expansive lots along shady, tree-lined streets. Consider the location carefully, basing the choice on your preferences. If you’re passionate about outdoor recreation, such as boating, swimming, and fishing, look for homes with easy access to the shores of Lake Minnetonka. If you enjoy shopping and dining out, then seek out neighborhoods that offer those amenities within easy reach.
Decide on your preferred home style
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There are a variety of homes and properties available in the Minnetonka real estate market, so decide what type of home you prefer. If you want a residence with easy upkeep, you might consider a condo. These low-maintenance residences also typically provide owners with access to shared spaces, which may include gathering rooms, swimming pools, and fitness centers.
Are you looking for a home with land? Consider the amount of space you need and the amenities you require. You may have a specific architectural style you prefer or require the benefits of smart home technology. Create a list of your non-negotiable items to help guide your home search.
Hire an experienced real estate agent
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The next step in your home search involves hiring the right agent to help you find Minnetonka real estate that meets your needs.
Communicates directly
Your real estate agent should demonstrate clear and direct communication skills. You should be able to establish a consistent method of communication with them, whether it is through email, phone calls, or texting. Your agent should be direct with you about the process and respond to your questions in a timely manner. Be sure that your agent is also enlisted to represent only you in the transaction, and not the buyer too, to ensure that they have your best interests in mind.
Understands the area
Your agent should be highly familiar with the Minnetonka area and be able to speak directly to its strengths and weaknesses. They should be able to discuss the amenities, strength of the schools, and options for transportation. Your agent should understand any future developments in your preferred area that could impact your future home. In addition, they should have established local connections to support your purchase, including references for movers, decorators, inspectors, and landscapers, depending on your needs.
Knows the real estate market
Your agent should also demonstrate a deep understanding of the market itself. They should speak especially to the local Minnetonka market and how it affects your purchase. There are real estate trends that affect the markets and understanding how houses are selling in Minnetonka will inform you moving forward. They will also be able to speak to the amount and types of properties available, especially those within your target neighborhood.
When you are ready to buy your first home in Minnetonka, consider the services of
John Brekken. John has lived in the Twin Cities for twenty years. He has a passion for real estate and demonstrates a calm leadership style that has greatly benefited his clients. Contact him at
The Laura Tiffany Group to get started today.
*Header photo courtesy of John Brekken
