When purchasing your first home, the process doesn't begin with home searches. It starts with meeting with a lender and getting your prequalification unless of course, you have enough money to pay cash.
Often, first-time buyers are afraid to meet with a lender and get prequalified. People have a fear that the lender may tell them they don't qualify for a mortgage or in other case, they qualify only for a smaller amount. So they randomly pick a price range out of the blue and start looking for a home they may or may not afford.
It is more fun to go look at houses than meet with a professional mortgage lender but that's not how it should be done. It is very important to meet with a mortgage lender so you can find out what your financial situation is.
Why Meet With a Lender
Assess your Financial Situation
Know your buying power - Pre Qualification
Assess any issues with your background - If so, the lender will show us how to fix these issues before hand
Make financial decision versus an emotional decision
Hire a Professional
Hiring your own real estate agent, who will work for you as the buyer and not the seller. You don't have to worry about paying your agent a commission, buyer agents are paid by the seller.
Hiring a professional can help you streamline the whole process vs doing it all on your own. I highly recommend contacting myself and my team in the beginning stage so we can help guide you on the whole buying process. We're here to make it easy for you and as stress free as possible.
Make a List of Needs and Wants
To have the most success in your first home purchase, I highly recommend sitting down and drafting a list of things that are important to you in a home. I suggest drafting 2 list: Needs and Wants.
The honest truth is, you'll probably never get everything on your list. It's always a hit or miss, so knowing what you can't live without and can live without will help you on the decision when you find three to five homes that you love but can only chose one.
The Home Buying Process
Parties Involved
Real Estate Agents : Selling Agent & Buying Agent
Mortgage Lenders
Escrow/Title Company
Inspectors
Appraisers
What is the difference between Pre-Qualification and Pre-Approval?
Pre-Qualification
The initial step in the mortgage process. You supply the bank or lender with your overall financial situation, including your debt, assets, and income. The lender will evaluate the information you provde: two years of taxes, two bank statement, two month paystubs, credit check. Then the lender will give you an idea of the mortgage you can qualify for which is called the Pre-Qualification.
Pre-Approve
The next step in the mortgage process. This is when you actually apply for a mortgage and receives a commitment letter from a lender. This means the lender or the bank has done all their initial prequalifications with you, they have processed and checked all your information, and approve you for the Mortgage loan. The Pre-Approval from the lender or bank is what's needed to close your dream home.
Different Types of Loans
FHA
Federal Housing Administration is a mortgage managed by the Department of Housing and Urban Development (HUD) which is a department of federal government. This means FHA loans are government insured loans. This program allows you to make a down payment as low as 3.5% of the purchase price.
VA
The U.S. Department of Veterans Affairs (VA) is a loan program for our military service members and their families. This is also backed by the federal government. The primary advantage of this program is that borrowers can receive 100% financing for the purchase of a home. This means no down payment for your military members.
Conventional
Conventional home loans are not insured or backed by the federal government. Conventional mortgages generally pose fewer hurdles than FHA or VA loans.
[ First Time Home Buyer Program And Down Payment Assistant Programs ]
Nevada: Home Is Possible Program and other Down Payment Assistance Programs
Established by the state of Nevada in 2014, The Home Is Possible Assistant Program helps new homebuyers just like you to get up to 5% of the loan value. When qualified by a mortgage lender, you can use the money of up to 5% of the purchase price for your down payment or closing costs.
If you are thinking of buying a house in Las Vegas now or in the future, contact us for a Free No Obligation Consultation. We would love to assist you in getting you ready and providing you valuable information on how we can help you become successful in the purchase of your first home at no cost.
Whether your a First Time Home Buyer or not, we would love to discuss with you the different rebate programs we offer all of our home buyers.
The data relating to real estate for sale on this web site comes in part from the INTERNET DATA EXCHANGE Program of the Las Vegas REALTORS® MLS. Real estate listings held by brokerage firms other than this site owner are marked with the IDX logo. LVR MLS deems information reliable but not guaranteed. Copyright 2023 of the Las Vegas REALTORS® MLS. All rights reserved. The information being provided is for the consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Updated:
