Buying a House in Minneapolis MN: Tips for Funding
Buying a House in Minneapolis MN
The Signing
During the process of buying a house in Minneapolis MN, when the lender is ready to “close” your loan, or “fund” it, your real estate agent and your mortgage broker will have you sign the final loan documents. Signing will typically take place in front of a notary or an escrow officer. Ask your mortgage broker if there is anything you need to do to prepare for this, such as bringing a photo ID or perhaps a cashiers’ check if you are purchasing real estate. Allow yourself enough time to review the documents for accuracy.
| If funds are being wired: “Wiring instructions” direct the electronic transfer of money between financial companies. If possible, arrange to have the wiring instructions in place ahead of time and checked for accuracy by both the sender and recipient of the wire. It is critical that these instructions be exact, and even so, delays are all too common. |
Congratulations!
Your mortgage broker will probably call you to confirm that the money has been transferred and the loan has closed. Always follow up with a phone call to confirm that your loan funds went where they were supposed to go. It is a good idea to keep records of this critical phase of the transaction once completed.
FAQ | Buying a House in Minneapolis MN
What loan options are available for buying a home?
For buying a house in Minneapolis MN, there are many types of loans, including conventional loans, FHA loans, VA loans, and USDA loans. Each has different requirements and benefits.
How much should I save for a down payment?
Most lenders require 3% to 20% of the home’s price. Some programs offer down payment assistance for first-time homebuyers.
What is private mortgage insurance (PMI)?
PMI is an extra cost required for some loans if your down payment is less than 20%. It protects the lender in case you can’t make payments.
What are closing costs, and who pays them?
Closing costs include lender fees, title insurance, and taxes. They usually range from 2% to 5% of the home’s price. Sometimes, sellers may help cover these costs.
How does my credit score affect my mortgage?
A higher credit score can help you get a lower interest rate, which means smaller monthly payments. Lenders prefer scores of 620 or higher, but some loans allow lower scores.
Can I get financial help when buying a house in Minneapolis MN?
Yes! For buying a house in Minneapolis MN, there are programs that offer grants, low-interest loans, and other assistance for homebuyers, especially first-time homebuyers.
Should I choose a fixed-rate or adjustable-rate mortgage?
A fixed-rate mortgage keeps your payments the same for the life of the loan. An adjustable-rate mortgage (ARM) may start lower but can change over time.
How can I lower my monthly mortgage payment?
You can lower your payment by choosing a longer loan term, making a bigger down payment, or getting a lower interest rate.
How can Molina Realtors help with home financing?
We connect homebuyers with trusted lenders, explain loan options, and guide you through the entire financing process. If you’re buying a house in Minneapolis MN, we’re here to help!