Buying a home in Minnesota? Here are three questions you should be prepared to answer at the closing table.
1) How do you want to take title? Most married couples go into title as joint tenants, which means that if one dies their portion automatically goes to the other. Tenants in common don’t have to own equal shares and ownership follows probate. In Minnesota, even if you go into title as a sole owner your spouse automatically has joint ownership, even if you buy before you marry. Read more about taking title in the post linked below.
2) Do you want owner’s policy title insurance? Most of the time this is already included in your mortgage financing estimates, but while you are required to purchase title insurance for your mortgage lender purchasing it for yourself as the buyer is optional. It costs a few hundred dollars more, but personally I would never buy a property without it. Read more about title insurance and why I would never buy a home without it in the post linked below.
3) Will this be your primary residence? If yes, they will provide you with information and documents at closing to file for homestead. There is no charge for homesteading, you only need to do it once, and it can give you a break on your taxes. If the property is already homesteaded and you fail to file once you own the property, your property tax may increase. Read more about homestead status and its additional benefits in the post linked below.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
