The single most important first step is getting pre-approved for a mortgage before you start looking at homes. Pre-approval tells you exactly how much you can borrow, what your monthly payment will be, and what programs you qualify for. It also makes your offer significantly more competitive when you find the right home. Text GUIDE to 952-900-7343 to get your free Twin Cities Home Buyer's Guide or book a free 30-minute strategy session at gohomebuyersclub.com.

Much less than most people think. With FHA financing you need as little as 3.5% down — and with our zero down programs even that can be covered. On a $350,000 home using a zero down program with seller-paid closing costs your total out-of-pocket can be as low as $2,800 to $3,800 for prepaids only. Text ZERO to 952-900-7343 for our free Zero Down Guide that explains exactly how this works.

Most FHA programs require a minimum score of 580. Some programs accept scores as low as 560 with compensating factors like strong income or low debt. Conventional loans typically require 620 or higher. If your score needs improvement we can put together a personalized credit improvement plan to get you qualified within 60 to 90 days. Text SCORE to 952-900-7343 for our free Credit Score Guide.

FHA stands for Federal Housing Administration. FHA loans are government-backed mortgages designed specifically for buyers who are newer to homeownership or have less-than-perfect credit. They require lower down payments (3.5%), accept lower credit scores than conventional loans, and have more flexible debt-to-income guidelines. The tradeoff is mortgage insurance premiums (MIP) which add approximately $155 per month on a $337,750 loan. For most first-time buyers the benefits far outweigh the MIP cost.

Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. For example if you earn $6,000 per month and have $500 in existing debt payments plus a projected mortgage payment of $2,000 your DTI is 41.7%. FHA loans generally allow DTIs up to 43-50% depending on other factors. The lower your DTI the easier your approval and the better your rate.

In most cases we can complete a pre-approval in 24 to 48 hours once we have your documents. You will typically need to provide recent pay stubs, W-2s from the past two years, bank statements from the past two months, and a copy of your photo ID. The sooner you start the process the sooner you know exactly what you can afford and what programs you qualify for.

For mortgage pre-approval you will typically need — two years of W-2s and tax returns, one month of recent pay stubs, two months of bank statements, photo ID, and if self-employed two years of business tax returns and a year-to-date profit and loss statement. Your Realtor will handle the purchase agreement, inspection reports, and title documents on the real estate side.

Earnest money is a good faith deposit you make when your purchase offer is accepted — typically 1% of the purchase price or $1,000 to $3,500 on most Twin Cities transactions. It shows the seller you are serious and gets applied toward your cash-to-close at closing. If the sale falls through due to a contingency in your contract — like a failed inspection or financing issue — your earnest money is typically refunded.

Text ZERO to 952-900-7343 to get your free Zero Down Home Buying Guide instantly. Or book your free 30-minute strategy session at gohomebuyersclub.com. In 30 minutes we can identify every program you qualify for, show you your exact cash-to-close number, and give you a clear timeline for getting into a home.

A home inspection is an independent assessment of the property's condition by a licensed inspector — covering the roof, foundation, electrical, plumbing, HVAC, and more. While not legally required we strongly recommend it for every buyer. Inspections typically cost $400 to $600 and can save you thousands by identifying issues before you close. If significant problems are found you can negotiate repairs, a price reduction, or walk away with your earnest money.

A buyer's agent is a licensed Realtor who represents your interests in the transaction — helping you find homes, write competitive offers, negotiate terms, and navigate the closing process. In most Twin Cities transactions the seller pays the buyer's agent commission as part of the sale. Working with an experienced buyer's agent costs you nothing and gives you a professional advocate on your side throughout the process.

The typical home buying process in the Twin Cities follows these steps — first a free strategy session to assess your situation, then mortgage pre-approval, then home search with your Realtor, then making an offer and negotiating, then the inspection period, then final loan approval and underwriting, then closing day where you sign documents and get your keys. From pre-approval to closing typically takes 30 to 60 days.

Closing costs are fees associated with finalizing the purchase — lender fees, title insurance, appraisal, attorney fees, and recording fees. They typically total 2 to 3% of the purchase price. As your buyer's agent and mortgage loan officer Bob Feland can negotiate seller-paid closing costs into your offer — a very common strategy that can eliminate this expense entirely. On a $350,000 home that saves you $7,000 to $10,500.

Title insurance protects you against claims on the property's ownership — such as undisclosed liens, errors in public records, or fraud. There are two types — lender's title insurance (required by your mortgage company) and owner's title insurance (strongly recommended for you). It is a one-time premium paid at closing that protects you for as long as you own the home. In Minnesota the cost is typically $1,000 to $2,000.

Yes — though the documentation requirements are more extensive. Self-employed borrowers typically need two years of personal and business tax returns, a year-to-date profit and loss statement, and business bank statements. Lenders use your net income after deductions rather than gross revenue to calculate qualifying income. If you have been writing off significant expenses on your taxes this can affect how much you qualify for. We can review your situation and find the best program for your specific circumstances.

An appraisal is an independent valuation of the property ordered by your lender. It confirms the home is worth at least what you are paying for it. If the appraisal comes in below the purchase price you may need to renegotiate with the seller or make up the difference. FHA appraisals also check that the property meets minimum safety and condition standards. Appraisals typically cost $500 to $700 and take 3 to 7 days.

Minnesota has excellent resources for first-time buyers including Minnesota Housing Finance Agency programs with below-market interest rates and down payment assistance, Hennepin County and Ramsey County DPA programs, city-specific programs in Minneapolis, St. Paul, Bloomington, and many suburbs, plus federal programs through FHA, USDA, and VA. Text DPA to 952-900-7343 for our free Down Payment Assistance Guide that covers the most popular programs available right now.

Bob Feland holds dual licenses as both a Realtor and a Mortgage Loan Officer — a combination held by approximately 2% of Realtors in Minnesota. With 20+ years of Twin Cities experience and over half a billion dollars in guided transactions, Bob gives you expert guidance on both the real estate and financing sides of your purchase in one conversation. No miscommunication between agent and lender. No financing surprises. Just a clear strategy from your first session to closing day. Text GUIDE to 952-900-7343 or book your free session at gohomebuyersclub.com.