What are the Steps in the Home Buying Process?

What Special Considerations Should First Time Home Buyers Be Aware Of?

Buying a home for the first time is a big step in anyone’s life. As exciting as owning your own home can be, the actual process of making your first home purchase can be quite intimidating. Here are a few things that you should be aware of if you’re planning on buying your first home in the Southwest Twin Cities metro:

  • Make sure that you have a good understanding of your financial situation and plan your budget accordingly before diving into the home-buying process. Don’t just think about the purchase price of the home; you’ll have many additional costs such as closing costs, property taxes, mortgage, homeowners insurance, and possibly maintenance and renovations.
  • Check your credit score, since it’s a significant determining factor in the interest rate you’ll receive on your mortgage loan. If your credit score is below 620, try to improve it before applying for a mortgage to secure better terms from a lender.
  • Research different types of mortgages to find the one that best suits your financial situation and long-term goals. Many types of mortgages exist, including conventional loans, FHA, USDA, and VA. Compare interest rates, terms, and requirements from multiple lenders to find the ideal option for you.
  • Saving for a down payment is often one of the biggest hurdles for first-time home buyers in the Southwest metro. Make sure to learn the minimum down payment requirements for whatever type of loan you’re thinking of applying for. It would be a shame to get your heart set on a new home, only to realize you can’t afford the down payment to secure it.
  • Something first time buyers may not realize is that it’s good practice to conduct a thorough home inspection before finalizing the purchase. A professional home inspection can reveal hidden issues with the property that could be costly to repair later on.
  • Find out if the home you’re planning to purchase in the Southwest Twin Cities is part of a homeowners association (HOA). If the property is part of an HOA, review the association’s rules, regulations, fees, and restrictions carefully to make sure they won’t be a detriment to your home buying plans.


If you want to learn more about what you should be considering as a first time home buyer in the Southwest Twin Cities metro, get in touch with the Nydahl Group today to speak with one of our realtors about the home buying process!