Minnesota process · buyer view

The Minnesota Home-Buying Process: Your Step-by-Step Checklist

This checklist walks a first-time Minnesota buyer through every stage of a typical home purchase, from getting your finances ready to picking up the keys.

Reading as buyer. Switch to seller

Phase 1 of 7 · typically 2-8 weeks

Pre-Offer

Get your money, your team, and your search organized before you start writing offers. This is the phase where most of your homework gets done.

  1. Check your credit and set a realistic budget

    YouBefore you contact a lender

    Pull a free credit report from each of the three bureaus and look for errors. Add up your monthly take-home pay, debts, and savings so you have a number in mind before any lender or agent quotes you a payment.

    You'll need

    • Credit reports
    • Recent pay stubs
    • Monthly bill list

    Cost: $0

  2. Get pre-approved for a mortgage

    LenderBefore you start touring homes

    Contact two or three lenders and apply for a written pre-approval. Compare the interest rate, monthly payment, and estimated closing costs side by side so you can see who actually has the best deal, not just the friendliest sales pitch.

    You'll need

    • W-2s (last 2 years)
    • Federal tax returns (last 2 years)
    • Pay stubs (last 30 days)
    • Bank and retirement statements (last 2 months)
    • Photo ID

    Cost: $0

  3. Interview and choose a buyer's agent

    YouBefore scheduling any private showings

    Talk to at least two licensed Minnesota agents about how they work, what they charge, and how much experience they have with the type of home you want. You are hiring a fiduciary, so pick someone who answers your questions clearly and is licensed in Minnesota.

    Cost: $0

  4. Review and sign the Agency Disclosure form

    Your agentAt first substantial contact, before discussing a specific property

    Minnesota law requires your agent to give you the state Agency Disclosure form at first substantial contact, which is the moment you start talking about a specific property or your specific needs. Read it carefully so you understand whether the agent represents you, the seller, both, or neither before you keep going.

    You'll need

    • Minnesota Agency Disclosure form

    Cost: $0

  5. Sign a written buyer representation agreement

    Your agentBefore your first showing (in person or virtual)

    Under the post-settlement NAR rules effective August 17, 2024, you must sign a written buyer representation agreement before your agent can show you any home, including virtual tours, if their brokerage participates in an MLS. The agreement spells out how long you are working together and exactly how much your agent will be paid.

    You'll need

    • MAR Exclusive Buyer Representation Agreement

    Cost: $0

  6. Tour homes and build a shortlist

    YouOver several weekends until you find the right home

    Visit homes in your price range and take notes and photos of each one. Pay attention to commute, layout, condition, and neighborhood feel, not just listing photos, so you can narrow down to two or three serious options.

    Cost: $0

Phase 2 of 7 · typically 1-5 days

Offer

Write a strong, well-documented offer using Minnesota's standard purchase contract and the right compensation path for your agent's fee.

  1. Read the MAR Standard Purchase Agreement before signing

    Your agentBefore you sign the offer

    Most Minnesota residential offers use the Minnesota REALTORS (MAR) Standard Purchase Agreement. Have your agent walk you through purchase price, earnest money, financing contingency, inspection contingency, closing date, and what stays with the house so nothing surprises you later.

    You'll need

    • MAR Standard Purchase Agreement

    Cost: $0

  2. Decide how your agent's compensation will be paid

    Your agentWhile drafting your offer

    Minnesota MLSs removed offers of compensation from listings on August 17, 2024, so your agent's fee now has to be documented outside the MLS. With your agent, decide whether you will ask the seller for a concession in your offer, accept what the listing brokerage advertises off-MLS, or pay your agent directly from your own funds.

    You'll need

    • Buyer representation agreement
    • Draft purchase agreement

    Cost: varies

  3. Decide on an earnest money amount

    Your agentBefore submitting the offer

    Earnest money is the deposit you put down to show the seller you are serious. In Minnesota it is typically 1% to 3% of the purchase price, but you and your agent should decide an amount that is strong enough to win the bid without tying up cash you may need for closing.

    Cost: 1-3% of purchase price typical

  4. Submit your written offer to the listing agent

    Your agentAfter the purchase agreement is signed

    Your agent sends the signed purchase agreement and any addenda to the seller's side, along with proof of your pre-approval. Be ready for the seller to accept, reject, or send a counteroffer within a day or two.

    You'll need

    • Signed purchase agreement
    • Lender pre-approval letter

    Cost: $0

  5. Review and respond to counteroffers

    Your agentWithin the response window in the offer

    The seller may push back on price, closing date, repairs, or which appliances stay. Look at each change with your agent and decide whether to accept, counter again, or walk away before the offer is binding.

    You'll need

    • Counteroffer addendum

    Cost: $0

Phase 3 of 7 · typically 3-10 days from acceptance

Under Contract

Lock in the deal with earnest money and review the Minnesota-required disclosures that tell you about the property's condition and risks.

  1. Deliver earnest money to the brokerage's trust account

    YouWithin the deadline in your purchase agreement (typically 1-3 business days after acceptance)

    Send your earnest money to the brokerage holding it within the deadline in your purchase agreement. Under Minnesota Rules Chapter 2805, the broker must deposit it into a separate trust account within three business days of receipt, so confirm in writing that it cleared.

    You'll need

    • Wire instructions or cashier's check
    • Earnest money receipt

    Cost: 1-3% of purchase price typical

  2. Review the Seller's Property Disclosure Statement

    Seller's sideBefore or at signing, with a 3-business-day rescission window if delivered after

    Minnesota requires sellers of one- to four-unit homes to give you a Seller's Property Disclosure Statement covering the roof, foundation, plumbing, electrical, heating, and any known defects. If you receive it after signing the purchase agreement, you have three business days to back out for any reason.

    You'll need

    • Seller's Property Disclosure Statement

    Cost: $0

  3. Review the Minnesota radon warning and disclosure

    Seller's sideBefore or at signing the purchase agreement

    Minnesota's Radon Awareness Act requires the seller to give you a written radon warning and any known radon test results before or at signing. Minnesota has one of the highest radon risk profiles in the country, so read this and decide whether you want your own radon test during inspection.

    You'll need

    • Minnesota Radon Disclosure and Warning

    Cost: $0

  4. Review the Well Disclosure Certificate, if applicable

    Seller's sideBefore closing; required to be filed with the deed

    If the property has any well on it, including a sealed or abandoned one, Minnesota requires a Well Disclosure Certificate that lists the number, location, and status of each well. The certificate gets filed with the deed at closing, so review it now and ask questions about any unsealed or unknown wells.

    You'll need

    • Minnesota Well Disclosure Certificate

    Cost: $0

  5. Review the HOA or condo resale disclosure, if applicable

    Seller's sideWithin 10 days of receiving the complete resale package

    If you are buying a condo, townhome, or any home in a common interest community, the Minnesota Common Interest Ownership Act requires the seller to deliver a resale disclosure certificate, the declaration, bylaws, rules, and recent financials. You have ten days after receiving the complete package to cancel the deal in writing, and this right cannot be waived.

    You'll need

    • MCIOA resale disclosure certificate
    • Declaration and bylaws
    • HOA financials and budget

    Cost: $0

  6. Review the federal lead-based paint disclosure for pre-1978 homes

    Seller's sideBefore signing for any pre-1978 home; 10-day inspection window after

    Federal law requires sellers of homes built before 1978 to give you the EPA pamphlet 'Protect Your Family From Lead in Your Home' and disclose any known lead-based paint. You also get a 10-day window to test for lead-based paint unless you agree in writing to a shorter period or waive it.

    You'll need

    • EPA lead-based paint disclosure
    • EPA pamphlet

    Cost: $0

Phase 4 of 7 · typically 5-14 days after acceptance

Inspection

Hire your own inspectors to check the home's condition and use the results to renegotiate, ask for repairs, or walk away.

  1. Hire a licensed home inspector

    InspectorWithin the inspection contingency window (often 5-10 days)

    Schedule a professional home inspection within the inspection window in your purchase agreement. Show up for at least the end of the inspection so the inspector can walk you through anything they found in person.

    You'll need

    • Signed inspection agreement

    Cost: $400-700 typical

  2. Order a radon test on the home

    InspectorDuring the inspection contingency window

    Because Minnesota has high radon levels statewide, pay your inspector or a radon specialist to run a short-term radon test during your inspection period. If the result is at or above 4.0 pCi/L, you can ask the seller to install a mitigation system or give you a credit.

    You'll need

    • Radon test report

    Cost: $150-250 typical

  3. Order a septic (SSTS) compliance inspection, if the home has one

    InspectorAs early in the inspection window as possible

    If the property uses a subsurface sewage treatment system instead of city sewer, many Minnesota counties require a compliance inspection at the point of sale. Find out what your county requires and hire a licensed SSTS inspector early because failed systems can be expensive and take weeks to replace.

    You'll need

    • County SSTS compliance form
    • Septic inspection report

    Cost: $300-600 typical

  4. Test the private well, if the home has one

    InspectorDuring the inspection contingency window

    If the home is on a private well, hire a licensed contractor to test the water for bacteria, nitrates, and arsenic and to confirm the well is in good working order. Compare the results with the Well Disclosure Certificate so you understand exactly what you are buying.

    You'll need

    • Well water test results

    Cost: $150-400 typical

  5. Check the home's drug-lab history

    YouBefore the inspection contingency expires

    Minnesota requires sellers to disclose any knowledge that the property was used to make methamphetamine, and the Minnesota Department of Health keeps a public list of identified clandestine drug lab sites. Search the address on the MDH list before your inspection window closes so you can walk away if you find a hit.

    Cost: $0

  6. Negotiate repairs, credits, or a price reduction

    Your agentBefore the inspection contingency expires

    Based on the inspection, radon, septic, and well results, your agent submits a written inspection response asking the seller to fix items, give a closing credit, or reduce the price. If you cannot reach an agreement within the contingency window, you can usually back out and get your earnest money returned.

    You'll need

    • Inspection reports
    • Inspection response or amendment

    Cost: $0

Phase 5 of 7 · typically 2-4 weeks

Loan and Appraisal

Move your mortgage application from pre-approval to full underwriting and make sure the home appraises for at least what you are paying.

  1. Submit your full mortgage application

    LenderWithin a few days of contract acceptance

    Send your chosen lender every document they request so underwriting can start. Avoid opening new credit cards, financing a car, or changing jobs during this time because any of those can blow up your approval.

    You'll need

    • Signed loan application
    • Updated pay stubs and bank statements
    • Purchase agreement

    Cost: $0

  2. Pay for and review the appraisal

    Lender1-3 weeks after contract acceptance

    Your lender orders an independent appraisal of the home to make sure it is worth what you are borrowing against. If it comes in low, you can ask the seller to lower the price, bring extra cash to closing, or use the financing contingency to walk away.

    You'll need

    • Appraisal report

    Cost: $500-700 typical

  3. Lock your interest rate

    Lender1-3 weeks before closing

    Once you are comfortable with the timing, ask your lender to lock your interest rate in writing so the number cannot move on you before closing. Make sure the lock period covers your closing date with a few extra days for surprises.

    You'll need

    • Rate lock confirmation

    Cost: $0

  4. Choose and bind a homeowners insurance policy

    You1-2 weeks before closing

    Shop at least two insurers and pick a homeowners policy that covers the rebuild cost of the home, your belongings, and liability. Your lender needs proof of insurance about a week before closing, so do not leave this for the last day.

    You'll need

    • Insurance binder
    • Declarations page

    Cost: $800-2,000/year typical

  5. Clear all underwriting conditions

    LenderThroughout underwriting until clear-to-close

    Underwriters almost always come back with a list of conditions, like updated bank statements or a letter explaining a deposit. Send each document quickly because your final loan approval, called clear-to-close, depends on all conditions being signed off.

    You'll need

    • Conditional approval letter
    • Any documents requested by underwriting

    Cost: $0

Phase 6 of 7 · typically 3-7 days before closing

Pre-Closing

Confirm title is clean, review the final numbers, and walk through the home one last time before signing day.

  1. Review the title search and order title insurance

    Escrow / title1-2 weeks before closing

    Most Minnesota closings are handled by a title company that performs a title search and issues title insurance. Find out whether the property is on the abstract system or the Torrens (registered land) system because Torrens properties have a slightly different closing process, and buy an owner's title insurance policy so you are protected against future ownership claims.

    You'll need

    • Title commitment
    • Owner's title insurance policy

    Cost: $500-1,500 typical

  2. Review the Closing Disclosure three days before closing

    LenderAt least 3 business days before closing

    Federal law requires your lender to deliver a Closing Disclosure at least three business days before closing. Compare the loan terms, interest rate, monthly payment, and cash to close to your most recent Loan Estimate and ask your lender to explain anything that does not match.

    You'll need

    • Closing Disclosure
    • Most recent Loan Estimate

    Cost: $0

  3. Confirm wire instructions by phone before sending money

    YouWithin 1-2 days of closing

    Wire fraud is one of the biggest risks in real estate closings. Before you send any funds, call the title company at a phone number from their website (not from the email itself) and verbally confirm the wire details, then double-check the receiving account name and number before you hit send.

    You'll need

    • Title company wire instructions

    Cost: $0

  4. Do a final walkthrough of the home

    Your agent24-48 hours before closing

    Within 24 to 48 hours of closing, walk through the home with your agent to make sure agreed-upon repairs are done, the seller has moved out, and nothing has been damaged since the inspection. Note any new issues right away so they can be addressed before you sign.

    You'll need

    • Inspection response
    • List of items expected to stay

    Cost: $0

Phase 7 of 7 · typically 1-2 hours on closing day, plus follow-ups

Closing

Sign the loan and ownership documents, pay Minnesota's state taxes and recording fees, and start your post-closing checklist as a brand-new owner.

  1. Attend closing and sign the documents

    Escrow / titleOn closing day

    On closing day you sign the mortgage note, deed of trust or mortgage, and a stack of loan and disclosure documents at the title company. Bring a government-issued photo ID, your closing funds confirmation, and a list of any last-minute questions for the closer.

    You'll need

    • Government-issued photo ID
    • Closing Disclosure
    • Cashier's check or wire confirmation

    Cost: $0

  2. Pay the Minnesota State Deed Tax and Mortgage Registry Tax

    Escrow / titleAt closing

    Minnesota charges a 0.33% State Deed Tax on the purchase price (with a minimum of $1.65 on sales above $3,000) and a 0.23% Mortgage Registry Tax on the new mortgage amount. These show up on your settlement statement and are paid at closing through the title company, so make sure they match the numbers on your Closing Disclosure.

    You'll need

    • Settlement statement
    • Closing Disclosure

    Cost: 0.33% deed tax + 0.23% mortgage registry tax

  3. Confirm the deed and Well Disclosure Certificate are recorded

    Escrow / titleWithin a few business days of closing

    Your title company files the signed deed with the county recorder so you officially become the owner. If the property has any wells, the Well Disclosure Certificate is filed at the same time, which Minnesota law requires for every conveyance of property with a well.

    You'll need

    • Recorded deed
    • Recorded Well Disclosure Certificate

    Cost: $46-50 recording fees typical

  4. File for Minnesota homestead classification

    YouAs soon as possible after closing; by December 31 to qualify for the current year

    If the home will be your primary residence, file a homestead application with your county assessor (most accept it online). Minnesota's homestead classification gives owner-occupied homes a lower property tax rate, which can save you hundreds of dollars a year, so do this within the first month even though the official deadline is December 31.

    You'll need

    • Homestead application
    • Photo ID
    • Social Security numbers for all owners
    • Recorded deed

    Cost: $0

  5. Set up utilities, update your address, and store closing documents

    YouClosing day and the first week after

    Transfer electric, gas, water, internet, and trash into your name effective on closing day, and update your address with the post office, employer, bank, and DMV. Save a digital and a paper copy of your closing packet, including the deed, title policy, and Closing Disclosure, because you will need them at tax time and whenever you refinance.

    You'll need

    • Closing packet
    • Photo ID

    Cost: varies

Sources

  1. [1] Minnesota REALTORS Legal Action Center
  2. [2] NorthstarMLS Settlement Compliance Resources
  3. [3] Minnesota REALTORS Legal Action Center - Settlement Resources
  4. [4] NorthstarMLS Compensation Rules
  5. [5] NorthstarMLS Settlement Compliance Rules
  6. [6] Minnesota REALTORS Post-Settlement Resources
  7. [7] Minn. Stat. §273.124 - Homestead Classification
  8. [8] MN Revenue Homestead Classification
  9. [9] Minn. Stat. §82.66 - Agency Disclosure
  10. [10] Minn. Stat. §287.21 - State Deed Tax
  11. [11] Minn. Stat. §287.035 - Mortgage Registry Tax
  12. [12] Minnesota Rules Chapter 2805 - Trust Accounts
  13. [13] Minn. Stat. §82.66 - Agency Disclosure
  14. [14] Minn. Stat. §515B.4-107 - Resale of Units
  15. [15] Minn. Stat. §515B.4-102 - Public Offering Statement
  16. [16] EPA Lead-Based Paint Disclosure - Real Estate
  17. [17] HUD Lead-Based Paint Disclosure Requirements
  18. [18] Minnesota REALTORS Forms Library
  19. [19] Minn. Stat. §513.55 - Disclosure Timing
  20. [20] Minn. Stat. §152.0275 - Methamphetamine Disclosure
  21. [21] MDH Clandestine Drug Lab Site Lookup
  22. [22] Minn. Stat. §144.496 - Radon Awareness Act
  23. [23] Minnesota Department of Health Radon Program
  24. [24] Minn. Stat. §513.52 - Definitions
  25. [25] Minn. Stat. §513.57 - Liability for Failure to Disclose
  26. [26] Minn. Stat. §115.55 - Sewage Treatment Systems
  27. [27] Minn. Stat. Chapter 508 - Torrens System
  28. [28] Minn. Stat. Chapter 507 - Real Property Conveyances
  29. [29] Minn. Stat. §103I.235 - Well Disclosure Certificate
  30. [30] MDH Well Disclosure Program

Last updated May 15, 2026