AM Realty MN · Buyer guide
Buying a home
in Minnesota.
From your first lender conversation to the final walkthrough. Understand the process, ask better questions, and buy with a plan.
With Alex & Amanda · Brokered by LPT Realty, LLC
The short answer
How do you buy
a home in Minnesota?
To buy a home in Minnesota, set a comfortable budget, get mortgage preapproval, choose your representation, compare homes, negotiate a purchase agreement, complete inspections and financing, then review closing documents and take possession under your contract. Alex & Amanda help you connect those decisions into one clear plan.
For first-time buyers, repeat buyers, and homeowners planning their next move.
By AM Realty MN · Updated
Your path to the keys
The home buying process,
one decision at a time.
The steps connect, and some happen at the same time. Your loan, property, and signed agreement determine the exact requirements and deadlines.
Before the search
Start with a budget you can live with
Start with your comfortable monthly payment and available savings—not just the largest loan a lender might approve.
Include principal and interest, property taxes, homeowners insurance, any mortgage insurance, association dues, utilities, and maintenance. Keep room for emergencies and moving expenses. A lower purchase price does not always mean a lower total monthly cost.
Your next action
Gather a rough picture of your income, debts, savings, and credit. Decide how much cash you want to keep after closing.
How we help
We talk through your goals and timing, including whether equity from your current home needs to fund the purchase.
Before you tour
Explore financing and get preapproved
A lender reviews your finances to estimate what you may be able to borrow. Preapproval is a starting point, not a guarantee of final loan approval.
Different lenders specialize in different situations. Compare financing options, the payment, fees, mortgage insurance, and cash needed—not the interest rate alone. Ask what documentation is needed and whether homebuyer assistance could fit. Final approval still depends on your finances, the property, and the lender’s requirements.
Source: CFPB guide to Loan Estimates and Closing Disclosures
Your next action
Provide the documents your lender requests and ask for comparable Loan Estimates when shopping lenders. Check whether and when your preapproval needs updating.
How we help
We can help you find a lender suited to your situation. We make suggestions, you choose your lender; we help keep the home search aligned with your financing. Not all lenders are a fit for all situations!
Build your plan
Choose representation and define your priorities
Before touring with your agent, understand who represents you, what services you will receive, and how compensation works.
Written buyer agreements are required before an in-person or live virtual tour. Review the services, length, exclusivity, termination terms, and compensation. Compensation is negotiable and is not set by law. Separately, divide your home wish list into must-haves and preferences: location, layout, size, condition, accessibility, and upkeep.
Your next action
Ask questions before signing. Set a realistic search area, budget, and list of non-negotiables. Remember the 80-20 rule, if a home matches 80% of your wants and needs, we should consider if the 20 is something you can live with or change.
How we help
Alex & Amanda explain representation and build a search around how you want to live—not just a bedroom count.
Find the right fit
Search, tour, and compare homes
Use tours to evaluate the property and its trade-offs, not simply whether the photos look good.
Compare condition, layout, storage, lot, commute, and likely ownership costs. Review available seller disclosures and ask about anything you cannot verify. For a condo or townhome, consider association fees, rules, financial information, and potential assessments. A tour is not a substitute for an inspection.
Your next action
Keep notes after each tour. Revisit your priorities and independently check facts that matter to you, such as travel times and permitted property uses.
How we help
We hand-pick homes that fit what you told us, set up the showings, and give you a straight read on each one—its strengths, its red flags, and how it compares to recent sales.
From interest to agreement
Write an offer and negotiate the whole agreement
An offer includes more than price: financing, earnest money, contingencies, closing and possession dates, and any requested seller contributions all matter.
Market conditions and the seller’s priorities shape the strategy. Contingencies can make a purchase dependent on inspections, financing, an appraisal, or selling your current home. Deadlines and cancellation rights come from the signed contract; do not assume you can walk away for any reason. Waiving protections can create significant risk.
Your next action
Review the complete offer, your obligations, and each deadline before signing. Understand what happens to your earnest money if the transaction does not close.
How we help
We use local market information and creative negotiation to help your offer stand out while discussing the risks and trade-offs of each term.
Under contract
Complete inspections and property due diligence
We recommend a thorough home inspection. It helps identify concerns, but it does not guarantee a home is free of defects.
Choose a qualified inspector and ask whether additional testing or specialists are appropriate—for example, radon, sewer, well, septic, or structural evaluation. Review findings within your inspection deadline. Depending on the contract and the seller’s response, you may negotiate repairs or other terms, accept the condition, or exercise an available cancellation right.
Your next action
Read the report, ask about major issues and likely upkeep, and make decisions before your contractual deadlines expire.
How we help
We help coordinate access, track deadlines, and negotiate inspection-related requests. Inspectors and specialists evaluate the property; we help you act on the information.
Prepare to close
Work through appraisal, title, and final loan approval
An appraisal evaluates value for the lender; an inspection evaluates condition. They serve different purposes and neither replaces the other.
Your lender completes underwriting and may request updated documents. A low appraisal can affect financing and require a discussion about price, additional cash, or contractual options. The closing or title team reviews title matters. Arrange homeowners insurance and address outstanding requirements promptly. Ask your lender before opening credit or making major financial changes.
Your next action
Respond quickly to document requests. Confirm insurance, closing requirements, and how your lender will communicate final approval.
How we help
We help coordinate with your lender and closing team and work through property-related issues that could affect your purchase.
From contract to keys
Review documents, walk through, and close
Review your final loan terms and cash to close, complete the final walkthrough, then follow the closing and possession arrangements in your agreement.
For most home purchase mortgages, the Closing Disclosure must be received at least three business days before closing. Compare it with your Loan Estimate and resolve questions with your lender or closing agent. At the walkthrough, confirm agreed repairs and the property’s condition. Possession is governed by your contract and may not occur immediately after signing.
Your next action
Confirm identification, funds, utilities, and the possession schedule. Verify wire instructions by calling the closing company at a trusted, independently confirmed phone number—not a number in a last-minute email.
How we help
We help coordinate inspections, appraisals, paperwork, and more so closing day is smooth, and help you know what to check before you receive the keys.
Want a deeper look at financing or what to check before closing?
Beyond the purchase price
What should you budget
to buy a home?
Plan for the cash needed before closing, at closing, and after you move in. Your lender’s estimates and final disclosures—not a generic percentage—are the right tools for your specific purchase.
- Down paymentAt closing
- The portion of the purchase price you pay rather than borrow. The required amount depends on your loan, eligibility, and lender; 20% is not a universal requirement. Ask how your down payment affects mortgage insurance and the monthly payment.
- Earnest moneyAs your contract requires
- A deposit showing your commitment under the purchase agreement. It is typically credited toward the purchase at closing, not an extra fee on top of it. The contract determines timing, handling, and whether it can be returned if the purchase ends.
- Inspections and other early expensesOften before closing
- Budget for an inspection and any specialist testing, plus appraisal or other charges your lender may collect in advance. Timing and amounts depend on the providers and the property.
- Closing costs and prepaid itemsBefore or at closing
- These may include lender charges, title and settlement services, recording fees, prepaid interest, insurance, and escrow deposits. Buyer-agent compensation may also be your responsibility under your agreement. Seller contributions or assistance can affect your final amount, subject to the contract and loan rules.
- Cash to closeConfirmed before closing
- The amount you still need to bring to complete the purchase after deposits, credits, and adjustments. Use your lender’s Closing Disclosure and the closing team’s instructions rather than adding rough estimates together.
- Moving and ownership reservesAfter closing and ongoing
- Set aside funds for moving, utilities, repairs, maintenance, and unexpected expenses. Check the property’s taxes, insurance quote, and association obligations instead of assuming the seller’s payment will be yours.
Ask your lender to explain each line of your estimate and which amounts can change. CFPB guide to Loan Estimates and Closing Disclosures.
Local questions matter
Buying here means looking
beyond the listing.
First-time and repeat buyer assistance
Minnesota Housing offers Start Up and Step Up programs through participating lenders. Eligible buyers may have access to downpayment and closing cost loans. These are not automatically free grants: ask about qualification, education requirements, repayment, and current terms.
Rural homes and acreage
Ask about well water, septic condition and compliance, access, easements, zoning, and the uses you have in mind for outbuildings or land. Testing and local requirements vary. Confirm specifics with qualified inspectors and the relevant county or municipality before committing.
Explore property typesCabins, lake homes, and seasonal access
Confirm year-round access, winterization, water and septic systems, shoreline restrictions, flood considerations, and permitted uses. A property’s appearance or listing description is not proof that an addition, rental use, or shoreline change is allowed.
Explore the areas we serveBuying while you still own a home
Decide whether to sell first, use a sale contingency, or explore buying before selling. Cash to Win may be an option for eligible homeowners, but compare its costs, timing, and obligations with a traditional path. We plan the sale and purchase together rather than treating them as unrelated transactions.
Compare Cash to Win and the ROC ReFresh ProgramBe ready, not rushed
Before you tour,
have these pieces in place.
You do not need every answer on day one. These are the questions that make your first conversation—and your first tours—more useful.
- A comfortable monthly payment and a cash reserve you want to preserve.
- A lender conversation, financing options, and current preapproval when applicable.
- Your timing—including any lease end date or home you need to sell.
- A must-have list, flexible preferences, and realistic search locations.
- A clear understanding of your buyer agreement and potential compensation obligations.
- Questions about the property type, maintenance, and any special inspections.
A little less jargon
Six terms you’ll hear along the way.
- Preapproval
- A lender’s preliminary assessment of your borrowing ability, subject to conditions and final approval.
- Contingency
- A contract condition that must be addressed for the transaction to proceed, with rights and deadlines defined in the agreement.
- Appraisal
- An assessment of the property’s value, typically ordered for the lender. It is not a home inspection.
- Underwriting
- The lender’s review of the borrower, property, and loan requirements before final approval.
- Seller concession
- A seller contribution toward eligible buyer costs, subject to negotiation and loan-program limits.
- Possession
- When you may occupy the property under the purchase agreement. It can differ from the signing or closing time.
Straight answers
Minnesota homebuyer questions.
Start here, then ask us about the details that are specific to your move.
What is the first step to buying a house in Minnesota?
Start with a comfortable budget and a conversation about financing and timing. Gather your income, debt, and savings information, speak with a lender, and talk with an agent about your priorities before committing to a home search.
Do I need 20% down to buy a home?
No. A 20% down payment is not required for every mortgage. Your options depend on the loan program, eligibility, property, and lender. Ask for a comparison of the down payment, mortgage insurance, total monthly payment, and cash to close.
Are there first-time homebuyer programs in Minnesota?
Minnesota Housing offers Start Up for eligible first-time buyers and Step Up for eligible repeat buyers and some buyers outside Start Up limits. Downpayment and closing cost loans may be available. Income, purchase-price, credit, education, and other requirements apply; ask a participating lender for current eligibility and repayment terms.
How long does it take to buy a house?
There is no single timeline. Preparing finances and finding the right property can take longer than the period from an accepted offer to closing. Your purchase agreement sets the closing date; financing, inspections, title issues, and the seller’s timing can affect the schedule. We help build a plan around your situation.
Do I have to sign a buyer agreement before touring?
Written buyer agreements are required before an in-person or live virtual tour. An agreement comes in several forms, an Agency Disclosure, which is required by law and not a contract, and either a touring agreement or representation agreement. Discuss the services, duration, exclusivity, termination terms, and compensation before signing. Compensation is negotiable and not set by law. Visiting an open house on your own is different from touring with your own agent.
Who pays the buyer’s agent?
Your written buyer agreement defines compensation and your obligations. A seller or listing broker may offer a contribution, but it is not guaranteed. Review any offered contribution and what you would owe if it does not cover the amount agreed. Compensation is negotiable.
Is earnest money the same as a down payment?
No. Earnest money is a contract deposit, while the down payment is the portion of the price you do not finance. Earnest money is credited toward the purchase or closing costs at closing. Whether or not it is refundable if the purchase agreement fails to reach closing depends on the agreement and the circumstances.
Do I still need an inspection if the lender orders an appraisal?
Yes, and no, they address different questions and serve different functions. An appraisal evaluates value for lending purposes; an inspection evaluates overall property condition. Though not legally required, we recommend a thorough inspection and additional specialist evaluations when appropriate, sewer scope and radon to name a few. Neither guarantees that every defect will be found, but both are an important part of the due diligence process.
Can I buy a home before selling my current one?
Possibly! Depending on your equity, financing, budget, and available programs. Options can include a sale contingency, selling first, or a buy-before-you-sell strategy such as Cash to Win. Compare the costs and risks with your lender and our team before deciding; qualification is not guaranteed.
What happens at the final walkthrough?
We check the home’s condition, verify agreed upon repairs are complete, make sure included items are still present, and check for any changes in condition since your earlier visits before closing. This is not a replacement for an inspection. Any concerns or issues will need to be addressed before you complete the purchase. Enforcement of terms becomes much more challenging once we leave the closing table.
For current assistance terms, see Minnesota Housing homebuyer programs. For representation and compensation, see the NAR guide to negotiating written buyer agreements.
Your next move starts with a conversation
Tell us where you want to go.
First home, more space, less upkeep, or a move that involves selling too. Alex & Amanda help you understand your options before you commit.
About this guide & sources
Prepared for AM Realty MN’s buyer education library using our existing home-buying guidance and the resources below. Alex & Amanda provide real estate services through LPT Realty, LLC. This page explains the process; it is not legal, tax, or lending advice, a loan offer, or a guarantee of eligibility or outcome. Your signed agreements, lender, qualified specialists, and local authorities determine the requirements for your purchase.
- Our original home-buying guide
- Minnesota Housing homebuyer programs
- CFPB guide to Loan Estimates and Closing Disclosures
- CFPB Closing Disclosure explainer
- NAR guide to negotiating written buyer agreements
Updated . Program terms, financing requirements, and real estate practices can change. Confirm current information before making a decision.