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
Renee - This is a very informative post for buyers who have never closed a home in Nevada. You would hope that they had the benefit of a good realtor representing them, but we know that's not always the case.
Keep up the good work.
Renee, Wonderful job with these localism posts and getting them in tonight! Excellent first time buyer post....anyone buying their first home, or any home for that matter, would be very fortunate to have you representing them.
I've added you to the results list as being one of the people who completed all three posts....great work!!
Jo
Renee,
I read someplace that a person such as myself living in Los Angeles cannot purchase a home 'non-owner occupied' in Las Vegas, because many investors in the past purchased in Las Vegas, but then there were major problems with a lot of houses on streets sitting vacant. I was told by a broker in Los Angeles, that an investor cannot purchase a home or condo (non owner occupied) in Las Vegas right now.
So what's the deal? Can you buy non-owner? If there is such a rule against non-owner, are many people purchasing as '2nd home' and then later ultimately renting? Does the city of Las Vegas have minimum down payment requirements from investors over and above typical lending guidelines, or special tax circumstances?
I am very interested in purchasing a nice condo/townhome investment in Las Vegas very soon, I want to rent for now, and live in the property in a year, for a while as I expand my business into Las Vegas, and will need to be in Vegas to oversee the opening of a branch. so I need info. THANKS!!
Renee,
Great post! As soon as I have someone in your area, you will be getting a call!
Sal Poliandro - Bergen County Realtor
Renee.... what's weird is that I remember seeing this post and reading it, but I never said anything. The last 5 days have been long with a lot of back and forth, running around. But that's good, right?
In any case, you make a great point, that buying your first house can be scary.... and that having the right professionals can make the transaction very smooth. Overall, you laid out some great information and questions for the buyer to ask. Very nice job here...
Buy...buy Buy!
And Buy from Renee Burrows!!!!
With brand new incredible skyscrapers, hotels, casinos, and 5 star restaurants going in every year, there is no doubt that Las Vegas is probably the best investment in the country right now. One day, you will be mad at yourself for not buying a newer 3 bedroom home for only $110,000 at a 5.75% FIXED interest rate. What's that, like $850 a month including taxes and insurance, when they rent for $1,100 to $1,300??
Renee, How many people are moving to Las Vegas every year still?
This is great information Renee, I'm amazed at how many first time home buyers try to find the home before they get the loan in place. You really spell it out in a short and easy to read format for a buyer and what they should expect in the home buying process - Hope this gets you some great new clients, that I know will be happy with their choice!