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Scott Schultz's Blog

By Scott Schultz | Agent in Apple Valley, MN

Eagan First Time Home Buyers: Avoiding Major Mistakes

Are you planning to buy your first home in Eagan, MN? There are some basic things I would like to share with you about Eagan real estate to help ensure you avoid some of the biggest mistakes many first time home buyers make. With some very basic preparation you can avoid some of the most painful pitfalls.

The Community of Eagan

If you are thinking about a move to the southern metropolitan area you should really consider looking into Eagan real estateCITY. Due at least in part to its convenient access to the Twin Cities metro, the City of Eagan has grown rapidly over the years. As recently as fifty years ago the community had only about 3,000 residents, but now has over 64,000 according to the 2010 census. Of course, this means that most of the housing stock is in newer neighborhoods. Since Eagan is located in Dakota County, qualifying first time home buyers might want to check out the Dakota County First Time Home Buyers program. As a taste of what's currently happening in Eagan, go to their Community Events page.

1) Get preapproved for your first time home buyers loan first! I have met far too many first time buyers who find a home first, only to find out they do not yet qualify for financing. It can be a painful experience to go through the work of searching for the perfect home only to find out you are not yet ready to qualify for a loan. You can get preapproved with my preferred Minnesota mortgage lender even during the evenings or on weekends, and generally right over the phone. There is no cost and no obligation so why not start the process immediately?

2) Get educated about the process of buying a home. You can learn a great deal at a first time home buyer seminar or at a Home Stretch Worshop available through many communities around the Twin Cities. There is so much to know about the home buying process that it is well worth it to learn as much about it as you can…and as early as you can.

3) Get a home inspection on the house you buy. While a professional home inspection is not usually required by your lender it can reveal major potential problems in the house before you are fully committed to the purchase. I will help you negotiate a transaction with a contingency upon a professional home inspection that is satisfactory to you so that if it comes back bad, you can back out of the transaction. Some first time home buyers will skip the home inspection because of the $300 to $500 cost of the inspection. The inspection cost is cheap when compared to making a purchase of a home that later reveals multiple problems.

4) Take good care of your credit after preapproval. After you have received your preapproval for mortgage financing your Minnesota mortgage company still might need to check your credit again. Make your payments on time and do not open up any new credit. You should avoid additional credit inquiries after your preapproval application to avoid potential problems with your credit score.

5) Don't spend your down payment money prior to the closing on your home purchase. Your mortgage banker will give you a good faith estimate at loan application including an estimate for how much money you will need at closing. Make sure to save your money so that you're not caught short at closing.

The First Step: Get Preapproved!

For many Minnesota first time home buyers the big, intimidating question is where do I start the process? Your first step to home ownership is to get preapproved for a first time buyer's mortgage. In so doing you will find out how much you are qualified for so that we can research homes in a comfortable price range.

Scott Schultz
Sales Executive, Licensed Realtor in Minnesota
Remax Results
Cell 952-221-7419
Direct 952-431-2400
Fax 952-431-0420
14451 Founders Lane
Apple Valley, MN 55124
With a focus on Apple Valley real estate and surrounding communities.

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