The Disadvantages of Buying
a Minnesota Home

Buying the first place of your own can have many hurdles to overcome and many people don’t ever overcome them and are stuck renting for the rest of their lives. But if you’re head-strong and determined, no hurdle, no matter how high, can stop you with a little tenacity.

• To purchase a Minnesota home you generally need a lump sum of cash to get started. Closing costs can often be rolled into your mortgage, but the down payment will have to come out of your own pockets. Talk to a local lender to find out how much you will need. There used to be abundant "0-down" programs out there, but now you’re lucky to find 5% down programs.
• If you needed to get out of your house quickly for some reason, you can’t just skip town and forget about it. You’ll have to go about selling the place and all the associated hassles before you can liquidize that cash.
• You’ll also be paying such expenses as property taxes, hazard and homeowners insurance, utilities and regular scheduled AND unscheduled maintenance such as repairs.
• If you don’t upkeep your property and its condition it can decrease in value. Also if the "market" turns, as in the time of a recession, your home could lose value too making it tough to sell during those times.
• If, for whatever reason, you are no longer to pay your mortgage you could lose the home to foreclosure and all the money you’ve invested in it, even end up with a terrible credit rating as a result.
• Lastly, you’ll have to pay for the use of all your "experts" such as loan officers, insurance companies, title and closing people. None of these people work for free and are necessary to bring the purchase to the close.

If you’re still unsure about buying your first Minnesota home, continue educating yourself. Consider asking some people you know that own homes what their experience is and get an honest "first-hand" opinion. Then, if you still have questions, contact a Minnesota Realtor. That is their job and they will know more than any others on the topic of housing.