Buying your first home in the Twin Cities can feel like a lot. Between choosing a lender, touring across different neighborhoods, and making a confident offer, there are many moving parts. You want a clear roadmap, local tips that actually matter, and a team that keeps things simple. This guide walks you through each step from pre-approval to keys, with Minnesota-specific advice to help you move forward with confidence. Let’s dive in.
Get pre-approved
Start with a strong pre-approval, not a quick prequalification. A full pre-approval gives you a realistic price range and shows sellers you are ready to close. In competitive Twin Cities neighborhoods, that letter often makes the difference between winning and missing out.
Gather documents early so your lender can move fast. Expect to provide recent pay stubs, W-2s or tax returns, bank statements, a copy of your ID, a list of debts and assets, and explanations for any large deposits. If you have a gift or special down payment source, document that too.
Compare local lenders
Shop a few lenders and ask smart questions. Focus on interest rate vs. APR, discount points, and whether a rate lock is available and for how long. Confirm typical underwriting timelines and what the lender needs from you to stay on schedule.
If you plan to use assistance, check whether the lender is approved for Minnesota Housing programs or local down payment help. Also ask about options for seller credits toward closing costs and how that might affect pricing.
Use assistance programs
Minnesota offers helpful resources for first-time buyers. Minnesota Housing often provides down payment and closing cost assistance paired with affordable first-mortgage products. Counties and cities, including Hennepin County and Ramsey County as well as Minneapolis and Saint Paul housing departments, periodically offer classes, counseling, and grants or loans.
Program availability changes frequently. Review current income limits, credit requirements, and approved lender lists directly with the agencies and your lender. HUD-approved counselors can help you budget, compare programs, and prep for homeownership.
Plan your home search
The Twin Cities metro varies a lot by neighborhood. You will see inner-city blocks near transit, older streetcar suburbs, postwar subdivisions, and exurban areas with more space. Competition, price points, and seller expectations can change from one area to the next.
Before touring, do quick homework on commute routes, transit access, walkability, floodplain or wetland considerations, and property tax levels by city or county. If schools matter to your plan, review public information and independent ratings to understand the landscape.
Tour smart in the Twin Cities
In some competitive pockets, it helps to attend in person for early showings so you can move quickly. In other areas, open houses and virtual tours are common and convenient. Your agent can advise on the best approach for each property.
Bring a simple checklist to each tour. Note roof age and condition, signs of moisture in basements, window age, electrical panel type, and heating system age. In Minnesota’s climate, roofs, foundations, and HVAC systems are top priorities.
Understand condos and HOAs
If you are considering a condo, plan to review HOA documents early. Ask for bylaws, budgets and financials, reserve studies, meeting minutes, and any details about pending or recent special assessments. Lenders typically require these documents for approval, and you want time to review them carefully.
Condo lending can also depend on occupancy ratios, insurance coverage, and building financial health. Build in enough time within your offer to review everything.
Build a strong offer
Most Minnesota buyers and sellers use standardized purchase agreements that include key terms and deadlines. Expect to define the purchase price, who holds earnest money, your contingencies, your closing date, possession timing, and whether you are asking the seller to cover any closing costs.
In competitive areas, sellers may prefer a shorter inspection timeline, a thorough pre-approval, or flexible closing dates. Your agent will help tailor your offer to local norms without putting your protections at risk.
Know earnest money norms
Earnest money shows serious intent. In the Twin Cities, amounts vary by price point and competitiveness. Buyers often put down several hundred dollars in low-competition situations and a few thousand dollars or a small percentage of the price when competition is higher.
The deposit is usually held by the listing brokerage or a title company according to the contract. If you close, that deposit becomes part of your funds at closing. Confirm exact timing and handling with your agent and lender before you submit the offer.
Choose contingencies wisely
Contingencies protect you. First-time buyers typically include financing, inspection, and appraisal contingencies. If you are buying a condo, also add time to review association documents.
In hot markets, some buyers limit or waive certain protections to compete. We do not recommend waiving inspections for first-time buyers. If you need to stay competitive, consider targeted inspections or tighter timelines rather than skipping protection entirely.
Schedule key inspections
A general home inspection covers structure, roof, plumbing, electrical, HVAC, and moisture issues. In the Twin Cities, pay special attention to roofs and foundations because of freeze-thaw cycles, and check basements for signs of water intrusion. Confirm gutters, grading, and sump pump function where present.
Add a radon test during your inspection window. Minnesota has notable radon levels, and state health officials recommend testing. If levels are elevated, your agent can help you discuss remediation or credits with the seller.
In older neighborhoods, consider a sewer scope to evaluate the main line, and schedule chimney or fireplace inspections as needed. Pest inspections can be smart in certain properties. In fringe suburban or rural areas, plan for well and septic inspections when applicable.
Appraisal basics
Your lender orders an appraisal to confirm market value. The appraiser compares the home to recent sales and adjusts for differences. Appraisals can trail fast-changing markets or struggle with unique properties.
If the appraisal meets value, you continue toward closing. If it comes in low, you have options. You can renegotiate, bring more cash, request a seller price reduction, or walk away if your appraisal contingency applies.
Closing timeline and costs
From accepted offer to closing, most buyers in the Twin Cities plan for 30 to 45 days. The exact timeline depends on your lender’s speed, how quickly inspections are completed, and any scheduling needs.
You will bring your down payment and closing costs unless they are covered by assistance or seller credits. Closing costs typically include lender fees, title insurance, government recording fees, prepaid taxes, homeowners insurance, escrow setup, and any HOA transfer fees.
Early in the process, your lender provides a Loan Estimate so you can budget. At least three business days before closing, you will receive a Closing Disclosure with final numbers. Review it carefully and ask questions right away.
Final walk-through and possession
Right before closing, you will do a final walk-through. Confirm that agreed repairs were completed and that the property is in the expected condition. Keys and possession transfer according to your purchase agreement, often on the day of closing at a set time.
After documents are signed and funds are wired, the title company records the deed with the county. That recording makes your ownership official. Your agent can help you understand how property tax proration works and when to expect your name on tax and utility records.
Practical checklist for first-time buyers
- Before touring: get pre-approved, gather documents, and research neighborhoods that fit your commute, transit options, and tax priorities.
- When ready to offer: confirm your lender’s timeline, prepare earnest money, and outline contingencies and key dates with your agent.
- After acceptance: schedule inspection and radon test, order specialty inspections as needed, and confirm appraisal timing with your lender.
- During inspection window: review seller disclosures, negotiate repairs or credits, and request condo documents if buying a condo.
- Before closing: secure homeowners insurance, review your Closing Disclosure at least three business days prior, wire funds per title instructions, and schedule your final walk-through.
- At closing: sign, fund, receive keys per contract, and confirm deed recording.
North and northwest suburb tips
If you are looking in areas like Maple Grove, Rogers, Coon Rapids, and Otsego, expect a mix of newer subdivisions and established neighborhoods. Competition can vary by price point and season, so lean on recent local data when setting offer terms.
In these communities, you may see different tax rates, HOA standards, and varying commute patterns. If you are considering acreage or exurban homes, plan for well and septic evaluations and confirm snow and road maintenance responsibilities.
If you need an alternative path to ownership, discuss creative financing such as a Contract for Deed with a team experienced in these structures. It is important to understand the responsibilities, timelines, and risks before you proceed.
Your next step
You do not have to figure this out alone. A local team can help you secure the right pre-approval, craft a competitive offer, and navigate inspections and closing with less stress. If you want step-by-step guidance in the Twin Cities north and northwest suburbs, reach out to Brisky Homes. We make the process clear, responsive, and community-minded from day one.
FAQs
How do I start buying a first home in Minneapolis–Saint Paul?
- Begin with a full pre-approval, compare a few local lenders, and review any Minnesota Housing or county programs you might use, then start touring with clear priorities.
How much earnest money do Twin Cities sellers expect?
- It varies by price and competition, from several hundred dollars in slower situations to a few thousand dollars or a small percentage in competitive areas, held in escrow per the contract.
Which contingencies are essential for first-time buyers in Minnesota?
- Financing, inspection, and appraisal are standard protections; add condo document review if buying a condo so you can evaluate association health and requirements.
Do I need a radon test when buying in the Twin Cities?
- Yes, radon is a known concern in Minnesota; include a radon test during your inspection window and discuss remediation or credits if levels are elevated.
What happens if the appraisal comes in low on my Twin Cities home?
- You can renegotiate, bring extra cash, ask the seller to reduce the price, or cancel if your appraisal contingency allows; your agent will help you choose the best option.
How long does it take to close on a home in Minnesota?
- Most closings take 30 to 45 days after acceptance, depending on lender timelines, inspections, appraisals, and scheduling needs agreed to in the contract.
What should I review if I am buying a condo in Minneapolis or Saint Paul?
- Review HOA bylaws, budgets, reserve studies, financials, meeting minutes, and details about special assessments, and confirm your lender’s condo documentation requirements.
