The First-Time Buyer's Guide to Minnesota
Everything you need to buy your first home with confidence.
Who this guide is for
This first-time home buyer guide is for anyone in Minnesota who is renting now, thinking about buying, and not sure where to begin. You do not need to be ready. You only need to be curious.
I'm Lesley, a REALTOR® with Bridge Realty. I wrote this guide because I bought my own first home without anyone explaining the process to me, and I do not want that for you. By the end, you will know the steps, the costs, and the questions to ask.
Ask Me Your First Question
Buying a home in Minnesota, step by step
- Check your credit and savings. Look at your credit report and what you have saved. If either needs work, a lender can give you a plan. Starting early gives you more choices later.
- Get pre-approved. A lender reviews your income, debts, credit, and savings, and tells you what you can borrow. Pre-approval is stronger than pre-qualification, because the lender has looked at your documents.
- Ask about down payment help. Minnesota Housing and a number of city and county programs help eligible buyers with down payment and closing costs. Your lender can tell you which ones you qualify for.
- Choose your own agent. You sign a written agreement that explains what your agent does and how they are paid. From then on, your agent works for you.
- Decide what you need. Write down your must-haves, your nice-to-haves, and where you want to live.
- Tour homes. Look past the photos: the roof, the furnace, the basement, the street.
- Make an offer. You sign a purchase agreement and submit earnest money. Your offer includes price, financing, a closing date, and contingencies that protect you.
- Inspect the home. A professional inspector examines it. You can ask for repairs or a credit, or walk away if serious problems appear and your agreement allows it.
- Appraisal and final loan approval. Your lender confirms the home's value and reviews your finances once more.
- Final walkthrough and closing. You confirm the home's condition, sign your documents with the title company, pay your cash to close, and get your keys.
Most purchases close about 30 to 45 days after an offer is accepted.
What it costs
- Earnest money, submitted with your offer and credited to you at closing.
- The inspection, paid when it is done.
- Your down payment, often far less than 20 percent. Some loans allow as little as 3 percent down.
- Closing costs, including lender fees, title services, prepaid property taxes, and homeowners insurance.
Your lender's Loan Estimate shows your expected cash to close. After you move in, plan for your monthly payment plus utilities, upkeep, and repairs.
Mistakes to avoid
- Touring before you are pre-approved. You may fall for a home you cannot buy, or lose one because you were not ready to offer.
- Walking into a builder's model home alone. The consultant works for the builder. Bring your own agent on your first visit.
- Skipping the inspection to win a home. It is your one chance to learn the true condition before you commit.
- Taking on new debt before closing. A new car loan or credit card can undo your loan approval. Your lender checks again before closing.
- Looking only at the price. Property taxes, insurance, and association dues change the monthly cost. Compare the full payment.
- Waiting for the perfect moment. No one can predict rates. Decide with real numbers: your rent today against what owning would cost.
How we help, and your next step
We explain every step before you take it, connect you with reputable lenders who look for every program you qualify for, and stay with you from your first question to your keys. Our clients have given us a 5.0-star rating on Google, and first-time buyers are the heart of our business.
Your next step is a conversation. Bring your questions, and you will leave with a clear plan. Send us a message or call (651) 661-4770. You can also read our first-time buyer page and how we help buyers.
Frequently Asked Questions
How much do I need for a down payment in Minnesota?
Often far less than 20 percent. Some loans allow as little as 3 percent down, and assistance programs may help if you qualify.
What credit score do I need to buy my first home?
It depends on the loan program. Some programs accept lower scores than many people expect, and a lender can give you a plan if your credit needs work.
How long does it take to buy a home?
Once your offer is accepted, closing usually takes about 30 to 45 days. The search before that varies.
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Ready to make your move with Lesley The Realtor?