Minnesota Home Buyers Club
Home Buyer’s Guide
Author: Bob Feland
Senior Real Estate Agent and Senior Loan Officer
952-900-7343
A Trusted Expert with Unmatched Experience
With over 20 years in the real estate and mortgage industry, I bring a wealth of knowledge and a proven track record to every transaction. I’ve had the privilege of closing over two thousand mortgages and completing hundreds of real estate transactions, ensuring that each client receives the expertise and guidance they deserve.
As the owner of both a mortgage company for 12 years and a real estate company for 10 years, I’ve gained unique insights into the intricacies of both sides of the home-buying process. This dual experience allows me to seamlessly guide clients from mortgage pre-qualification to the closing table, all while providing peace of mind through every step of the journey.
My commitment to excellence extends beyond my clients. Over the years, I’ve trained dozens of mortgage and real estate professionals, sharing best practices and helping shape the next generation of industry experts. When you choose me, you’re not only working with an experienced realtor and loan officer but also with someone dedicated to elevating the standards of service in our field.
Let my expertise be your advantage in today’s competitive market—together, we’ll make your homeownership dreams a reality.
Check out our website at www.gohomebuyersclub.com
Here you can find helpful videos that explain how we can help you reach your real estate objectives using proprietary processes that we have developed over a 20+ year career in the real estate and mortgage industries..
Book a 15 minute Consultation with Bob Feland so we can help answer your biggest questions and, when you’re ready, start the process of exploring your options. Click Here to get on our calendar today:
The Home Buying Process in a Nutshell
Overview of Steps:
Pre-Approval: Sellers and their Listing Agents won’t take you seriously as a buyer unless you have a pre-approval letter. So before you want to start looking at homes you’ll need to apply here and get pre-approved. It only takes a few minutes to fill it out and a few minutes to upload your documents and we can get you approved in no time.
Home Search: Getting set up on our MLS Daily Property Report simplifies finding homes that fit your exact profile which saves times and keeps you focused on the best possibilities. Click here to fill out the Ideal Home questionnaire that will provide us with the information we need to set up your home search. This is a great place to start because it gives you a chance to get educated on the market. Many of my future buyers are on a daily MLS email campaign up to a year or more in advance.
Offer & Negotiation: Bob Feland has developed a very effective offer presentation process through years of experience that allows you to be in the top tier of offers every time you make an offer on a home. This allows your offer to receive serious consideration virtually every time and gives you the best chance of winning in a competitive market. Schedule a call to find out how we can help you position yourself in the best way possible.
Inspection & Appraisal: Home Inspections are important in protecting a buyer from getting into a purchase transaction on a home that can have significant concerns. Inspections provide the buyer with a way out of the deal with zero risk during the inspection phase.
Closing: Now we’re getting to the fun part. Be sure to have your funds in order and delivered to the closer before or at closing. Our title company closers will guide you through the final steps and help you sign the paperwork needed to close your mortgage and get your keys.
https://www.executivemortgagebrokers.com/robert
Getting Pre-Approved
Checklist: Documents for Pre-Approval
To start the pre-approval process, gather these essential documents:
Proof of Income: Recent pay stubs, W-2s, and/or profit and loss statements (if self-employed).
Tax Returns: Typically, the last two years' tax returns are required.
Credit Report and Score: Your credit score plays a key role in determining loan eligibility and interest rates.
Book a 15-Minute Home Buyers Exploratory Call to discuss the pre-approval process and ensure you’re ready to proceed smoothly.
ypes of Mortgages
Understanding the types of mortgages can help you choose the best option for your unique needs:
Conventional Loans: Generally lower rates, flexible terms, ideal for those with strong credit.
FHA Loans: Lower down payment options, accessible for first-time buyers, but with mortgage insurance requirements.
VA Loans: Exclusive to veterans and active military, with benefits like no down payment and no private mortgage insurance.
USDA Loans: Focused on rural areas, offering zero down payment and low mortgage insurance for qualifying buyers.
Each loan type has its benefits and potential drawbacks. We’ll explore the pros and cons during your 60-Minute Home Buyers Strategy Session to find the right fit for you.
Down Payment Assistance Programs
Both Minnesota and Wisconsin offer programs specifically designed to assist first-time buyers. These programs can significantly reduce upfront costs, making homeownership more accessible. We’ll walk you through the eligibility requirements and benefits for each program available in your area, ensuring you make the most of these resources.
Budgeting for Homeownership
Prepare for the financial responsibility of homeownership with a clear budgeting plan. Use this worksheet to estimate monthly expenses beyond your mortgage, including:
Property Taxes
Homeowners Association (HOA) Fees
Homeowners Insurance
Maintenance and Utilities
This budgeting exercise provides clarity on what you can comfortably afford, laying the foundation for a financially secure homeownership journey.
Book a 60-Minute Home Buyers Strategy Session for a detailed discussion on budgeting, mortgage options, and next steps toward your dream home.
https://www.executivemortgagebrokers.com/robert
Tips for Finding Your Perfect Home
Benefits of the MLS Daily 'Hot Properties' Report vs. Zillow
When searching for a new home, timing is everything. While platforms like Zillow are popular, they often lag behind the MLS (Multiple Listing Service) by a day or two. This delay can be crucial in today’s competitive market, where hot properties are often snapped up within hours. Our MLS Daily 'Hot Properties' Report offers several distinct advantages:
Real-Time Access: With our direct MLS feed, you receive immediate updates as soon as new listings hit the market, giving you a head start over other buyers relying on slower platforms.
Increased Opportunity: By being among the first to know, you can schedule showings and place offers quickly, reducing the risk of missing out on your dream home.
Streamlined, Reliable Information: Unlike public platforms that may show outdated or inaccurate details, the MLS pulls data directly from the source, ensuring you always have the most accurate property information.
Choosing our Daily MLS Report means fewer missed opportunities and a more efficient, frustration-free search process.
Open Houses vs. Private Showings: A Strategic Approach
While open houses are enjoyable and can be a convenient way to see multiple homes, there are several considerations to keep in mind:
Open Houses:
Pros: Open houses allow for casual browsing and can be a great way to get a feel for the market and neighborhood. No appointments are required, so you can explore homes at your own pace.
Cons: Open houses can complicate agent representation. The agent hosting the open house represents the seller’s interests, and discussing your interest in the home with them could affect your negotiating power. It’s essential to mention that you have your own agent so the open house agent knows your interests are protected.
Private Showings:
Pros: With a private showing, your agent is solely focused on representing you, providing a confidential and strategic approach to evaluating the property. This environment is optimal for asking questions and gathering information without revealing too much to the seller’s agent.
Cons: Private showings require scheduling, but this personalized experience often leads to better outcomes, as your agent can focus on what matters most to you.
Recommendation: Enjoy open houses if you’re curious or exploring options, but avoid giving your full names or any contact information to them. Be sure and save serious considerations and questions for private showings with your own agent.
Working with Your Agent: Maximizing the Home Search Process
A successful home search requires open communication and flexibility. As you view homes, keep an open dialogue with your agent about your preferences, whether it’s the layout, location, or style of the homes you’re seeing. This feedback allows your agent to refine their search and find properties that better align with your needs. Adjusting the search criteria based on what you discover together makes the process more efficient and tailored to you.
By leveraging the direct MLS feed, strategically navigating open houses and private showings, and maintaining clear communication with your agent, you’ll be set up for a successful home search experience.
Making an Offer
Market Analysis & Pricing Strategy: Data-Driven Precision
When making an offer, knowing the right price is crucial. Our team uses a proprietary approach that combines in-depth market analysis with current data trends to create offers that are both competitive and fair. Here’s how we ensure our clients are positioned for success:
Comprehensive Comparative Market Analysis (CMA): We analyze recent sales of comparable properties in the area to understand market conditions and price trends. This includes properties that sold recently, those currently on the market, and even properties that didn’t sell. This helps us gauge the property’s value based on real data.
Local Market Insights: Our team’s expertise in the local market gives us an edge. We look at factors beyond the numbers, such as neighborhood appeal, demand levels, and future growth potential, to craft an offer that aligns with the property's true market value.
Strategic Offer Positioning: Using our pricing insights, we position your offer to maximize your appeal without overpaying. If a home is likely to receive multiple offers, we can recommend competitive tactics, while in other scenarios, we can negotiate better terms.
Our market analysis and pricing strategy ensure that each offer is tailored, informed, and set up for a successful negotiation.
Negotiation Tips: Our Proven Approach to Securing Optimal Terms
Negotiation is an art, and our team has developed a proprietary approach to achieving the best possible terms for our clients. Here’s how we do it:
Building Rapport: We understand that successful negotiations often begin with mutual respect. By establishing a professional and positive connection with the seller’s agent, we foster open communication, which can help negotiations go more smoothly and facilitate favorable outcomes.
Understanding Seller Motivations: Before entering negotiations, we gather insights into the seller’s priorities—whether they’re motivated by a quick sale, flexible closing dates, or price. By aligning our offer with their motivations, we create a win-win scenario that increases the likelihood of acceptance.
Leverage Strategic Concessions: If needed, we’re skilled at using strategic concessions that make our offer more attractive without compromising the essentials. For instance, we can negotiate for repairs, closing costs, or timing flexibility that can provide you extra benefits while maintaining a strong overall offer.
By combining market knowledge with negotiation expertise, our team ensures that you receive the best terms without unnecessary compromises.
Offer Checklist: From Accepted Offer to Formal Agreement
Once an offer is accepted, there are several critical steps to complete before reaching a formal contract. Our team uses a detailed checklist to manage each step efficiently, ensuring a seamless transition from offer to contract:
Earnest Money Deposit: After the offer is accepted, we’ll guide you in submitting an earnest money deposit (a good-faith payment) to the escrow account. This deposit shows your commitment to the purchase and is typically held until closing.
Contingency Management:
Home Inspection Contingency: We arrange a thorough home inspection and handle any necessary negotiations if issues arise. If repairs are needed, we’ll work to either have the seller cover the costs or negotiate a concession.
Financing Contingency: This allows time for your lender to complete the underwriting process. We’ll coordinate with your mortgage provider to ensure all financing documentation is in order.
Appraisal Contingency: The lender typically requires an appraisal to confirm the property’s value aligns with the loan amount. If the appraisal comes in lower than expected, we’ll negotiate with the seller to find a solution.
Finalizing the Contract: Once contingencies are cleared, we’ll finalize the purchase agreement, preparing you for the final steps before closing. Our team monitors each milestone, so you don’t have to worry about missing any critical steps.
This Offer to Contract Checklist is part of our proprietary approach, ensuring no detail is overlooked and helping you stay organized and informed from start to finish.
With our proprietary strategies for market analysis, skilled negotiations, and a structured checklist for contract finalization, we’re dedicated to making the offer process smooth, competitive, and advantageous for you. This approach combines data, expertise, and diligent management, giving you confidence in each step.
Due Diligence Period
Home Inspection: Ensuring the Property’s Condition
A home inspection is a crucial step in the buying process, providing a clear picture of the property’s condition. Here’s what to know:
Common Inspection Checklist: A standard home inspection examines the major components and systems of a home to uncover any potential issues. Typical items include:
Roof: Inspecting shingles, flashing, and gutters for wear or leaks.
HVAC System: Checking heating, ventilation, and air conditioning systems to ensure they’re in working order.
Plumbing: Examining pipes, fixtures, and water heaters for leaks, corrosion, or drainage issues.
Electrical Systems: Looking at wiring, outlets, and the main electrical panel for safety hazards.
Foundation and Structure: Checking for cracks, moisture, or any signs of settling or structural damage.
Appliances: Ensuring kitchen and laundry appliances are functional, if included in the sale.
Tips for Interpreting Inspection Reports: Inspection reports can be detailed and may contain minor issues that are not necessarily deal-breakers. Here’s how to interpret them:
Identify Major vs. Minor Issues: Prioritize repairs that impact safety, functionality, or could lead to significant costs (e.g., roof leaks or faulty electrical systems).
Focus on Negotiation Points: Not every issue will require negotiation. Address items that could impact the home’s value or require costly repairs. Cosmetic or minor issues are often manageable and may not be worth negotiating.
Consult Your Agent: Your agent can help you determine which repairs or credits to request and how to approach the seller effectively.
Appraisal Process: Valuing the Home for Financing
An appraisal is a critical component of the financing process, conducted by a licensed appraiser to determine the property’s fair market value. Here’s how it works:
The Appraisal Process:
Property Visit: The appraiser assesses the home’s condition, size, location, and features.
Comparative Market Analysis: The appraiser uses recent sales data of similar homes in the area to determine a fair market value.
Report Generation: The appraisal report is then shared with the lender, helping them decide how much they’re willing to finance for the property.
Impact on Financing:
If the appraisal matches or exceeds the purchase price, the loan process continues as planned.
If the appraisal comes in below the agreed purchase price, lenders may limit the loan amount based on this lower value. You may need to either negotiate with the seller to lower the price or increase your down payment to make up the difference.
Contingencies: Protecting Your Investment
Contingencies are conditions written into the purchase agreement that must be met for the sale to proceed. They protect you from potential issues that could arise after making an offer. Here’s an overview of the most common types:
Types of Contingencies:
Inspection Contingency: Allows you to renegotiate or withdraw your offer if major issues are uncovered during the inspection.
Financing Contingency: Provides a safety net if your mortgage isn’t approved, giving you the option to cancel the purchase if financing falls through.
Appraisal Contingency: If the property appraises for less than the agreed purchase price, this contingency enables you to renegotiate or back out without penalty.
Sale of Current Home Contingency: For buyers who need to sell their existing home first, this contingency gives them time to complete that sale before moving forward with the new purchase.
Decision Points: Waiving or Keeping Contingencies:
In a Competitive Market: Waiving certain contingencies can make your offer more appealing to the seller. However, doing so carries risk. For example, waiving an inspection contingency could expose you to unexpected repair costs.
In a Balanced Market: Keeping contingencies in place is typically safer and less likely to affect your offer’s appeal. This approach allows you to address any concerns without feeling pressured.
Your Agent’s Advice: Discussing contingency options with your agent helps you evaluate the benefits and risks based on the market and your financial comfort.
By understanding these components—home inspections, the appraisal process, and contingencies—you’re better equipped to make informed decisions during your home purchase. Each of these steps plays a crucial role in protecting your investment and ensuring a successful transaction.
Final Steps Before Closing
Underwriting & Final Approval: What to Expect and Prepare For
The underwriting phase is where the lender thoroughly reviews your financial documents to confirm your eligibility for the mortgage. This process ensures that you can afford the loan and that there are no undisclosed financial issues. Here’s what to expect:
Verification of Documentation: The underwriter will scrutinize your financial records, employment verification, credit score, and assets. Any changes in your financial situation, such as large bank deposits, new credit inquiries, or recent job changes, could trigger additional verification steps.
Possible Requests for Additional Documents: It’s common for underwriters to ask for additional information, especially if any red flags arise. Be prepared to provide more recent pay stubs, bank statements, or letters of explanation for unusual financial activities.
Final Approval: Once the underwriter has reviewed everything and is satisfied with the risk level, they’ll issue a "clear to close." At this point, you’re ready to move toward closing day.
Checklist for Common Documents Needed for Underwriting:
Most recent pay stubs (typically last two to four)
Last two years of W-2s and tax returns
Bank statements for the past two to three months
Proof of any large deposits with explanations (if applicable)
Proof of assets such as retirement accounts or investment statements
Gift letters (if any part of the down payment is a gift)
Title Search & Insurance: The Importance of Title Integrity
A title search is conducted to verify that the property’s title is clean, meaning it’s free of any liens, judgments, or claims that could affect your ownership. Here’s a closer look:
Title Search Process: A title company examines public records to identify any issues, such as unpaid taxes, legal claims, or mistakes in prior ownership records. This thorough review helps ensure the seller has the legal right to transfer ownership to you.
Why Title Insurance is Essential: Title insurance protects you against financial loss if future claims or issues arise related to the property’s title. There are two main types:
Owner’s Title Insurance: This is optional but highly recommended, as it protects you from title-related losses for as long as you own the property.
Lender’s Title Insurance: This is required by most lenders and protects the lender’s interests in the property until the loan is paid off.
Benefits: Title insurance gives you peace of mind that your ownership is secure and that you won’t be financially responsible for previous issues tied to the property.
Preparing for Closing Costs: Knowing What to Expect
Before closing, it’s essential to understand and prepare for the costs involved. Closing costs typically amount to 2-5% of the loan amount and cover various fees. Here’s an itemized list of common closing costs:
Loan Origination Fee: Charged by the lender to process your mortgage application.
Appraisal Fee: Covers the cost of having the property appraised, often required by the lender.
Credit Report Fee: A fee to pull your credit report as part of the loan application process.
Title Insurance and Search Fees: Title search fees cover the investigation of the property’s title, while title insurance protects against future title claims.
Escrow Fees: Fees paid to the escrow company managing the funds during the closing process.
Homeowners Insurance Premium: Typically, the first year of homeowners insurance is paid at closing.
Prepaid Interest: Interest that accrues between the closing date and the end of the month.
Prorated Property Taxes: You’ll likely need to pay prorated property taxes for the time you’ll own the home in the current tax period.
Recording Fees: Covers the cost of registering the transaction and the new title with the local government.
Preparing for Closing: Review your Closing Disclosure statement carefully, as it will outline all costs and allow you to address any questions before closing day.
By understanding these final steps and preparing accordingly, you can navigate the last stages of your home-buying journey with confidence. You’ll enter closing day with clarity, ensuring a smooth transition to homeownership.
Closing Day
The Closing Process: Step-by-step guide on what happens on the closing day, including documents to sign.
Final Walk-Through Checklist:
Ensure agreed-upon repairs are complete.
Confirm appliances and fixtures are in place.
Celebration! Tips for the first few days in the new home, including changing locks, updating the address, and settling in.
Life as a New Homeowner
Maintenance Tips: You’ll want to create your own personal seasonal checklists, budgeting for repairs, and suggested local vendors.
Homeowner Insurance 101: Types of coverage and recommended policy reviews. I recommend a sit down conversation with your insurance agent to discuss all of the key features of your policy and the protections they provide.
Future Real Estate Goals: How the Bob Feland Real Estate Team can assist with refinancing, selling, or buying a new property.
FAQ Section
1. What are the steps to buying a home?
Buying a home generally involves securing the services of Bob Feland Real Estate Team, getting pre-approved for a mortgage through Robert Feland who works with Executive Mortgage Brokers, LLC., searching for homes, making an offer, conducting inspections, securing financing, and closing the deal. Each step has its nuances, and guidance from an experienced professional can make the process smoother. Schedule a Call with Bob Feland
2. How much can I afford?
Typically, lenders recommend that your mortgage payment should not exceed 28-30% of your gross monthly income. Your debt-to-income ratio, credit score, and down payment will also impact affordability. Schedule a Call with Bob Feland
3. How do I get pre-approved for a mortgage?
To get pre-approved, you'll need to submit financial documents to Robert Feland at Executive Mortgage Brokers, LLC. such as pay stubs, tax returns, and bank statements. A pre-approval helps you understand your budget and shows sellers you’re a serious buyer. Schedule a Call with Bob Feland
4. What is the minimum down payment required?
Conventional loans typically require at least 3-5% down, while FHA loans require 3.5%. Some VA and USDA loans offer zero-down payment options for qualified buyers. Schedule a Call with Bob Feland
5. What is PMI, and do I have to pay it?
Private Mortgage Insurance (PMI) is required if your down payment is less than 20% of the home’s value. It protects the lender in case of default, and it can be removed once you've built sufficient equity. Schedule a Call with Bob Feland
6. How does my credit score affect my mortgage?
Your credit score influences the loan options and interest rates available to you. Higher scores generally result in better rates, which can save you money over the life of the loan. Schedule a Call with Bob Feland
7. What types of loans are available for first-time home buyers?
Common options include FHA, conventional, VA, and USDA loans. Each has different requirements, benefits, and limitations. Schedule a Call with Bob Feland
8. What are closing costs?
Closing costs are fees and expenses you pay to finalize the mortgage, including lender fees, title insurance, and escrow fees. They typically range from 2-5% of the purchase price. Schedule a Call with Bob Feland
9. How long does the home buying process take?
On average, the process takes about 30-60 days from offer acceptance to closing. The timeline can vary based on market conditions, financing, and inspections. Schedule a Call with Bob Feland
10. What are the benefits of buying vs. renting?
Homeownership can offer stability, potential tax benefits, and the opportunity to build equity. However, renting may be more flexible if your situation is temporary. Schedule a Call with Bob Feland
11. What should I look for during a home tour?
Focus on the property’s layout, condition of major systems (roof, HVAC, plumbing), and the neighborhood. Think about both your current needs and long-term plans. Schedule a Call with Bob Feland
12. How much are property taxes?
Property taxes vary widely by location. Your realtor or lender can estimate your annual tax amount based on the home’s value and local tax rate. Schedule a Call with Bob Feland
13. Should I get a home inspection?
Absolutely. A home inspection can reveal potential issues that may not be visible during a tour. It’s an essential step to avoid costly surprises. Schedule a Call with Bob Feland
14. How does the interest rate affect my mortgage payment?
A lower interest rate means lower monthly payments and less paid in interest over time. Rates vary based on economic factors, loan type, and borrower qualifications. Schedule a Call with Bob Feland
15. What’s the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate of what you might afford, while pre-approval involves a thorough review of your finances, giving you a stronger position when making offers. Schedule a Call with Bob Feland
16. What’s included in my mortgage payment?
Your payment may include principal, interest, property taxes, and homeowner’s insurance. PMI may also be included if applicable. Schedule a Call with Bob Feland
17. Do I need homeowners insurance?
Yes, lenders require homeowners insurance to protect against damage to the property. It’s also wise to protect your investment. Schedule a Call with Bob Feland
18. Can I back out after making an offer?
Yes, but there may be penalties depending on your contract and contingencies. Speak with your realtor to understand your options. Schedule a Call with Bob Feland
19. What is earnest money?
Earnest money is a deposit showing your commitment to purchase. It’s typically applied toward your down payment or closing costs if the sale proceeds. Schedule a Call with Bob Feland
20. What is a contingency?
A contingency is a condition that must be met for the sale to proceed, such as inspection or financing approval. Contingencies protect you from losing your deposit if issues arise. Schedule a Call with Bob Feland
21. How much should I save for maintenance?
A common rule of thumb is to budget 1-2% of the home’s value annually for repairs and maintenance. Schedule a Call with Bob Feland
22. What documents do I need to apply for a mortgage?
To apply for a mortgage, you’ll typically need recent pay stubs, W-2 forms or tax returns from the last two years, bank statements, and information on any outstanding debts. These documents help the lender assess your financial stability and determine how much you can borrow. Having these documents ready in advance can speed up the approval process. Schedule a Call with Bob Feland
23. How does escrow work?
An escrow account holds funds for property taxes and insurance. It’s managed by the lender to ensure these expenses are paid on time. Schedule a Call with Bob Feland
24. What is an HOA?
A Homeowners Association (HOA) manages shared amenities and enforces community rules. Some neighborhoods have mandatory HOAs with associated fees. Schedule a Call with Bob Feland
25. Do I need a real estate agent?
Bob Feland is a senior real estate agent and can assist you in that capacity. A realtor can provide invaluable advice, market insights, and negotiation skills, especially for first-time buyers. Schedule a Call with Bob Feland
26. What if my offer is rejected?
Don’t be discouraged. You may consider negotiating or making an offer on another property that better suits your needs and budget. Schedule a Call with Bob Feland
27. What should I know about the neighborhood?
Research crime rates, school quality, commute times, and local amenities to ensure the area aligns with your lifestyle and long-term plans. Schedule a Call with Bob Feland
28. How do I know if it’s the right time to buy?
Market conditions, interest rates, and your personal financial situation all play a role. Consulting with a real estate expert can provide clarity. Schedule a Call with Bob Feland
29. Can I negotiate the home price?
Yes, many aspects of a home purchase are negotiable. Your realtor can guide you on when and how to negotiate for the best possible terms. Schedule a Call with Bob Feland
30. What happens after closing?
After closing, you’ll take ownership of the property, receive the keys, and start enjoying your new home! Regular maintenance will help protect your investment. Schedule a Call with Bob Feland
Free Resources & Next Steps
MLS Daily Property Report Sign-Up
Initial Home Buyer Consultation: Have a 10 minute phone or zoom call to discuss your situation and goals and we can provide you with expert advice and guidance on how to proceed.
Home Buyer Strategy Session Invitation: Details on scheduling a one-on-one meeting to discuss personal goals.
Mortgage Application Guide: If you’re within 3 to 6 months of getting ready to start searching for a home it is a good idea to get pre-approved now. This will allow us enough time to address any issues that might come up and allow time to find the best programs for you. Click Here to Apply for your mortgage application
Contact Information for ongoing support and to answer questions.