How to purchase a home in today’s market

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While the real estate market has been challenging for buyers over the last several years, strategies exist to help buyers find a home that suits their needs and budgets. While no one can predict if or when the real estate market might be less challenging, the following tips can help prospective homebuyers navigate the process and achieve their dream of homeownership.

Ready your finances – It’s important to get your financial affairs in order before shopping for a house. This includes analyzing your budget and getting preapproved for a mortgage from a lending institution. Organizations such as the Neighborhood Economic Development Alliance (NEDA), a St. Paul-based nonprofit, can help. They offer HUD-approved home purchase counseling free of charge and provide information on a variety of loan programs. An adviser will help you understand the process from start to finish, including a personalized, full credit report review to help identify potential barriers. They also offer Home Stretch homebuyer workshops that walk you step-by-step through the entire process, offer information on down payment and closing cost assistance programs, and give you the opportunity to ask questions to lenders, real estate agents, home inspectors and other industry professionals. For more information, visit nedahome.org or call 651-292-0131.

Minnesota Housing, the state’s housing finance agency, can help you understand your financing options and get you in touch with reputable lenders. They offer a variety of loan programs for first-time and repeat homebuyers, and a refinancing loan program to help make owning a home more affordable. Additionally, they offer down payment and closing cost loan programs totaling up to $18,000 in available loans for eligible borrowers. For more information, visit mnhousing.gov or call 651-296-7608.

Hire a real estate agent – A professional real estate agent will provide expert advice on the housing market and homebuying process, ensuring you don’t pay too much for a home or purchase a problem property. The St. Paul Area Association of Realtors offers this 7-point checklist on how to work with an agent and what to expect during the homebuying process. You can also learn more about home sales activity in your local area at spaar.com.

Secure a mortgage – Whether you’re looking to buy, build or refinance your home, an experienced mortgage professional can help. Agents such as Jason Stone at Mendota Heights-based Fairway Independent Mortgage Corporation can tell you about the wide variety of loan options available, from traditional 15- and 30-year mortgages to VA loans and adjustable-rate mortgages. They can also inform you of current interest rates, provide a pre-approval letter and assist with refinance analysis. For more information, contact jasonstone-loans.com or call 651-888-8171.

Insurance – Once you find a home, it’s important to secure adequate insurance to protect your investment and personal valuables from fires, storms and other accidents. You may work with an independent agent or a captive agent. Independent agents like Steve Sarantos of West St. Paul-based Reliable Insurance Network or one of the many agents at South St. Paul-based Sherman Insurance can sell policies from many different companies. Captive agents, such as Steve Stremski and Tom Stremski, State Farm agents based in West St. Paul, or Gino Ward, a Farmers Insurance agent in South St. Paul, sell insurance for only one company. Both types of agents represent insurance companies and receive a commission from the insurance company for the sale of its policies. When evaluating your options, make sure the agent and insurance company are licensed in your state.

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