Getting the Best Mortgages for First Time Home Buyers in Minnesota
Are you a first time home buyer in Minnesota? If so, now may be the best time to purchase your first home. According to Zillow, median home values in Minnesota are on the rise, increasing 7.7 percent in the past year alone.
Experts predict that home values will continue to rise by over 2 percent in 2018, which may be challenging for Minnesota first time home buyers hoping to get competitive mortgage rates.
To compete with steadily rising rates, MN first time home buyers may have to do a little extra research to find the best rates and terms from local or online lenders, detailed in the sections below.
Tips for Minnesota First Time Home Buyers
Buying a home is equal parts exciting and nerve-wracking. After all, purchasing a home is one of the most significant financial decisions that you will ever make.
As a first time home buyer in Minnesota, there are plenty of new procedures and paperwork that you will have to be prepared for, which can certainly make the process confusing.
Below, please find a set of tips to help make the process of purchasing a home as straightforward and simple as possible Minnesota first time home buyers.
- Take the time to explore different neighborhoods to find the right home
- Prioritize your preferences like condition, location, size, neighborhood, and price
- Be prepared to make sacrifices on your conditions as a first time home buyer in Minnesota
- Discuss your options with a lending professional to get exact numbers on your budget, monthly mortgage payments, and closing costs
- Be prepared to accept defects and make your own renovations later on
- Take the time to educate yourself about the local real estate market
- Get prequalified for a Minnesota first time home buyer loan before talking to a seller
Minnesota Banks vs Minnesota Online Mortgage Lenders
In the past, getting a mortgage for Minnesota first time home buyers meant sitting down with a representative and filling out paperwork in an office.
Today, Minnesota first time home buyers looking for the best mortgage rates have the advantage of using online mortgage lenders and applying for a mortgage from the comfort of their own home.
As a first time home buyer in Minnesota, should you choose a local bank or an online lender? Which one will offer the best rates for MN first time home buyers?
See the below sections for a quick explanation of what sets these mortgage lenders apart.
While most banks will offer online mortgage applications, the bulk of the mortgage application process will occur in-person for a first time home buyer in Minnesota.
For some borrowers, having a loan officer work directly with them throughout the process is a huge benefit, since Minnesota first time home buyers can receive one-on-one, in-person support.
If you have an established relationship with a local bank, you may be able to get better MN first time home buyer rates.
However, because banks have higher overhead, rates for a first time home buyer in Minnesota may reflect higher percentages to cover maintenance costs.
Additionally, the application process may be more time-consuming for a first time home buyer in Minnesota, since you’ll need to make an appointment with a loan officer and wait anywhere between 30-45 days for processing.
Online Mortgage Lenders
With the rise of online mortgage lenders, searching for mortgage rates for first time home buyers in Minnesota is more convenient than ever.
For many borrowers, the online application process for a mortgage will be much easier, too. Rather than bring physical copies to an office, these lenders use digital copies or automatic retrieval to fill out forms.
Without brick-and-mortar locations, online lenders often have the best rates on MN first time home buyer loans, since they don’t need to pay for the operational costs of running a physical office.
No matter what kind of Minnesota first time home buyer lender you choose, you’ll want to do your own research to ensure that they are offering the best rates for your unique financial situation.
Conclusion – Getting the Best Mortgage as a First Time Home Buyer in Minnesota
Once you know what type of mortgage for a first time home buyer in Minnesota you are interested in, your next step is to start evaluating lenders to find the best rates and terms.
Just as with any other shopping experience, it’s important to weigh your options and compare multiple offers for MN first time home buyer loans to ensure that you are getting the best deal possible.
Affordable and manageable mortgages for MN first time home buyers are determined not just by monthly payments, but also by interest rates and mortgage terms.
As such, don’t be afraid to shop around until you find the best Minnesota first time home buyer loan for your financial needs.
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