Purchasing a home for the first time can be a scary process. What is even more scary is our rental market which
has tightened up since the credit crunch! If you have large dogs, expect a denial just because of them! How about rental homes getting foreclosed on and the tenants had no clue?
Now, if you don't want the anxiety, now is probably the time for you to start looking at purchasing your own home. Right now, with interest rates in the mid 5's and home prices sliding downward, there are areas with very little disparity between an FHA house payment and a rental payment.
- Contact a trusted real estate professional
- Talk to the recommended lender to find out how much you qualify for. Make sure your lender is knowledgeable about first time buyer programs such as FHA and down payment assistance (DPA) programs associated with FHA.
- Once you are approved, have your agent set you up on an email "drip"
- Make an appointment to look at the homes
- Pick out your home
- Write the contract
At Contract time you will need:
- Your preapproval letter from your lender.
- Your Checkbook for your Earnest Money Deposit (figure between 1-2% of purchase price)
Multiple offers are happening with homes that are priced right. Do not try to lowball or lowball and get concessions (closing costs paid) or you could lose the home. Be prepared to write multiple offers on attractively priced homes. Avoid short sales because it is a long shot to get closed.
During the escrow period you will have to make sure you keep up on Due Diligence:
- Keep in touch with your lender, escrow officer and agent to see if you need any more documents
- Receive your "Certificate of Resale" and read the community CCRs, Bylaws, Financials and all other documents provided. As per Nevada law, you have 5 days after receipt to read and understand those documents. If you cannot live within the community guidelines you can get out of your contract.
- Hire an inspector (write it in the contract) EVEN IF IT IS NEW CONSTRUCTION!
- Have the seller's deliver the CLUE report (write it in the contract) so you know the property is insurable.
- Make sure your lender has all required documents INCLUDING APPRAISAL so the loan can be underwritten during your due diligence period.
- Read your PRELIMINARY TITLE REPORT
In Nevada you do not get the keys when you sign your loan documents at the title and escrow company.
- Lending conditions must be met
- Loan Must Fund
- Title Must Record
Right now the deals in Las Vegas New Construction & Resale Market are disappearing as soon as they hit the market. Make sure you interview your agent:
- Are they full time?
- Do they have backup support from a team environment to deal with time sensitive issues?
- Do they actively work the markets so they know where to find the deals?
- Ask them to give some real life examples of deals they have seen in the last week
- Ask them how much negotiating and contract experience they have had.
- Ask for customer testimonials and references
