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Home-Buying FAQs

Monday, June 17, 2019   /   by Jason Huerkamp

Home-Buying FAQs

_2018_03_couple-with-keys-standing-outside-new-home-picture-id640228744.jpg- Do I need to talk to a bank before looking at
YES! Before starting your home search, it is very important to talk with a lender and get pre-approved to buy a home. Talking with a lender helps you understand exactly how much you can afford, and gives you a better idea of what costs are associated with buying a home. If you are a first time home-buyer, this can be especially helpful, as a mortgage professional will go over the different loan options, first-time home buyer options, prepaid options and much more! In addition, understanding exactly how much you can afford helps you better determine the price range and communicate your needs & wants effectively with your agent. 

- What is earnest money?

Earnest money is basically a good faith-gesture and lets the seller know that you are serious about purchasing and have the funds to do so. When making an offer on a home, you will write into the purchase agreement the amount of earnest money you will be paying. This amount is typically between 1%-5% of the purchase price and will be applied towards your down payment amount at closing. 

- How much are closing costs?
That's a great question! On average, closing costs are about 3% of the purchase price (example: if a property sells for $250,000, then closing costs are about $7,500).

There are two options for buyers:
1. Pay closing costs directly at time of closing (this option is the most cost effective).
2. Finance closing costs into the loan (over the long run this will cost the buyer nearly 2x more money out of pocket since it's being financed over 30 years (360 payments)!

- What's your best advice for first time home buyers?
Trust the professionals! Real Estate is a popular topic, but you want to beware of taking advice from people who do not work in the industry. The best people to get advice from are licensed professionals who work in the field every day. Our team has 16 full time licensed real estate professionals and administrative staff working on the behalf of each and every one of our clients. We know what to expect and look for, and it is our goal to ensure that your home-buying process is as seamless as possible!

Huerkamp Home Group
Jason Huerkamp
14300 Nicollet Court # 208
Burnsville, MN 55306

The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. Real Estate listings held by brokerage firms other than Jason Huerkamp- Huerkamp Home Group are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.” Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.” Copyright2020Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Data last updated May 26, 2020