The Buying Process

Buying a home is one of the most important decisions you will make in your life, but it’s also one of the most exciting. We’re here to make sure you enjoy the experience and find the home that suits you best.

1. Let’s Get Moving: Ready to hit the ground running? We’re ready to assist you with everything from consultation to closing.
2. Financing Made Easy: Our home financing experts will help you make informed, confident decisions on your way to the closing table.
3. Finding the Right Home: We listen and learn about you, your wants, needs, and goals, then use our resources to find the perfect home.
4. Striking a Deal: We’re experienced negotiators, and we won’t back down until we’ve secured the best deal possible.
5. Home Inspections: We work with the best home inspectors in the business, so you can buy with peace of mind.
6. Moving In: We make the closing process simple and smooth, preparing and guiding you through every step.

7 Reasons to Own Your Home

1. Tax breaks: The U.S. Tax Code may allow you to deduct the interest on your mortgage, your property taxes, and other costs involved in buying your home.
2. Appreciation: Real estate has long-term, stable growth in value, and the demand for housing will only increase as the U.S. population grows.
3. Equity: Money paid for rent is money you’ll never see again, but mortgage payments build equity ownership interest in your home.
4. Savings: Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability: Although property taxes and insurance costs will increase, fixed-mortgage payments don’t rise over the years, unlike rent. This means your housing costs may actually decline over time.
6. Freedom: The home is yours. Decorate, remodel, and benefit from your investment for as long as you choose to stay.
7. Stability: Establish lasting relationships in your community and keep your children in the same school district.

Homebuying FAQs

How do I choose the right neighborhood when buying a home in the Twin Cities metro area?

Start by identifying your daily priorities, such as commute times, school district preferences, proximity to parks, and local amenities. Our team at the Jarrod Peterson Real Estate Group offers deep local market insights across Maple Grove, Plymouth, Wayzata, and the broader Minneapolis–St. Paul metro area to help match your lifestyle with the right community.

What local down payment assistance programs are available for Minnesota home buyers?

Minnesota offers several state and local assistance programs, including Minnesota Housing (MHFA) programs, which provide down payment and closing cost loans for qualifying buyers. Local city grants and first-time buyer assistance options are also available across Hennepin and surrounding counties.

What is the first step in buying a home in Minnesota?

The first and most critical step to buying a home in Minnesota is securing a mortgage pre-approval. A pre-approval clarifies your buying budget, shows sellers you are a serious buyer, and allows you to act quickly when you find the right property.

How much money do I need saved upfront to buy a home?

Upfront costs typically include:

• Earnest Money: 1%–2% of the purchase price (held in escrow to show good faith).
• Down Payment: Typically ranges from 3% to 20% depending on your loan type (e.g., Conventional, FHA, VA).
• Closing Costs: Generally 2%–4% of the loan amount, covering lender fees, title insurance, and prepayments.
• Home Inspection: $400–$700 out-of-pocket prior to closing.

Can I buy a home in MN if I have student loans or existing debt?

Yes. Mortgage lenders look at your Debt-to-Income (DTI) ratio rather than overall debt balance. As long as your monthly debt payments plus anticipated housing costs fall within lender guidelines (usually under 43%–45% of gross income), you can qualify for a home loan.

Does a homebuyer pay realtor fees in Minnesota?

In most traditional real estate transactions, the seller pays the listing commission, which is shared with the buyer’s agent brokerage. As a home buyer, working with the Jarrod Peterson Real Estate Group typically comes at no direct commission cost to you, while giving you full expert representation.

What is the difference between a home inspection and a home appraisal?

A home inspection is hired by the buyer to assess the physical condition, safety, and mechanical systems of the home before finalizing the purchase. A home appraisal is ordered by your lender to determine the objective market value of the property and ensure it secures the loan amount.

How long does it take from an accepted offer to closing on a house?

In Minnesota, the closing process usually takes 30 to 45 days from the date your purchase agreement is accepted. This window allows time for loan underwriting, home inspections, appraisal, title searches, and final walkthroughs.

Let the Jarrod Peterson Real Estate Group be Your Guide

Our real estate professionals chose to be realtors in Minnesota. We love our business, and we love helping clients. Whether you’re new to the area or have lived here your whole life, we’re excited to help you find your dream home.