The questions Twin Cities buyers ask me most, answered honestly. No jargon, no pressure. If yours isn't here, just ask. I'm always happy to talk it through.
That is exactly what pre-approval helps us figure out. It is not just the home price, it is the monthly payment that feels comfortable to you. A good lender backs into that number with you, looking at your income, your debts, and your goals, so you are never stretching past what feels right. Once we know that number, I build your search around it.
Most people are more ready than they think, and a few are less ready than they hoped. The honest answer comes from three things: your credit, your savings, and how settled you feel in your life right now. I am happy to walk through where you stand, with no pressure either way. Knowing is always better than guessing.
From pre-approval to closing, most buyers are looking at 6 to 12 weeks once they are actively searching. If you are 6 to 12 months out, that is actually great. It gives us time to prepare your finances, watch the market, and move quickly when the right home comes up.
Not necessarily. It depends on your finances and how much flexibility you have. Some buyers sell first for the security of knowing exactly what they have to work with. Others buy first so they do not end up with nowhere to go. I will help you figure out which approach makes the most sense, and how to protect yourself either way.
No. The 20 percent rule is one of the most common myths in real estate. Many loan programs, including conventional, FHA, and Minnesota first-time buyer programs, allow as little as 3 to 5 percent down. Putting less down is not always the wrong call. It depends on your full financial picture, and we will find the loan that fits your goals.
Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval is the real thing. The lender verifies your income, assets, and credit, and commits to a specific amount. Sellers take pre-approval seriously. Pre-qualification alone usually will not get your offer accepted.
More than just the loan. Your payment usually covers principal, interest, property taxes, and homeowner's insurance, and sometimes mortgage insurance or HOA dues. Once we know your price range and your credit profile, a lender can give you a close estimate so there are no surprises.
Plan on your down payment plus closing costs, which usually run about 2 to 4 percent of the purchase price. Your lender gives you a Loan Estimate early on that breaks down every line, and I will make sure you know your full cash-to-close number well before the day arrives.
Yes to gift money. Funds from family are allowed on most loan types, with a simple gift letter and a paper trail. And most people do not have perfect credit. Many programs are built for average credit, so it is far better to know where you stand than to keep guessing. A good lender will tell you honestly.
Often, yes. Minnesota Housing offers down payment and closing cost loans through its Start Up and Step Up programs, and there are city and county programs across the Twin Cities too. Some are repaid monthly, some are deferred until you sell, and certain programs are forgiven over time. Funding and availability change, so the best move is to ask me and we will check what you qualify for right now.
Property taxes vary by city, county, and school district, so two similar homes can carry different bills. The good news for owner-occupants is the Homestead Market Value Exclusion. Once a home is your primary residence and you file for homestead with your county, Minnesota excludes part of its value from taxation, which lowers your bill. I will point you to the homestead form so you do not miss it.
Yes, I always recommend it. Minnesota has some of the higher radon levels in the country because of our soil and our long heating season, and you cannot see or smell it. A radon test is inexpensive and easy to add to your inspection. Our winters make the inspection itself matter too, since freeze and thaw cycles are hard on foundations, roofs, and drainage.
Zillow is a great starting point for browsing, but it is not always accurate on price, availability, or neighborhood details. Zestimates can be off by tens of thousands of dollars. Once we are working together, you will get a live search feed straight from the MLS. It is more accurate and faster than any public site.
Tell me right away. I can get you in to see it, pull the comps, and help you decide if it is the right move before you fall too hard for it. Finding a home on Zillow or at an open house does not lock you into working with that listing agent.
The honest answer is that the right time is more about your life than the market. The Twin Cities market has become more balanced than the frenzy of a few years ago, with a little more room to breathe and negotiate. Rates can always change, and you can refinance later. What matters most is whether the home and the payment fit your life now.
This is where strategy matters more than just going highest. I look at the seller's actual motivation: their timeline, what terms matter to them, whether past deals fell apart. Sometimes a clean offer with a flexible closing beats a higher price with a lot of contingencies. I will give you my honest read on what it takes to win a specific home, and I will tell you when a home is not worth fighting for.
They answer two different questions. An inspection tells you about the condition of the home: what works, what is worn, and what might need attention. An appraisal tells your lender whether the home is worth what you agreed to pay. You usually want both, and they protect you in different ways.
Contingencies are the safety nets written into your offer. The common ones cover inspection, financing, and appraisal, and they let you renegotiate or walk away without losing your earnest money if something goes wrong. Waiving them can make an offer stronger but riskier. I will help you decide which to keep and which, if any, make sense to adjust on a given home.
Earnest money is a deposit that shows the seller you are serious. It is held in trust and applied to your costs at closing, and it is not the same as your down payment. If you back out for a reason your contingencies protect, like a failed inspection or financing, you generally get it back. If you walk away for no covered reason, you can lose it. We will always know where your deadlines are.
As of 2024, buyer agent compensation is negotiated upfront and must be agreed upon in writing before we tour any homes. How it gets paid varies by transaction. In many cases sellers do contribute to the buyer agent's fee, but that is always negotiable and not guaranteed. I walk through the specifics with every buyer before we start, so you know exactly what you are agreeing to.
Yes, and that is true with any agent now. A buyer representation agreement spells out what I do for you and how my compensation works before we walk through our first home. I see it as a good thing. It puts everything in writing so we are on the same page, and I will go through it with you line by line.
a game plan.
Whether you're six months out or ready to start this weekend, I'm happy to talk through where you are and what makes sense next.
651.325.8483 · madelinecanaday@kw.com
madelinecanaday.kw.com
7401 Metro Blvd, Suite 350 | Edina, MN 55439
This guide is for general informational purposes. Every transaction is different, and your situation may vary. That's exactly what I'm here for.
