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Las Vegas First Time Home Buyer Guide

First Time Home Buyer Guide Las Vegas

Congratulations on taking the first steps in to buying a home in Las Vegas.  I’m sure by now you’ve read articles after articles about the home buying process.  And all of them are right in their own processes.  

As a local Las Vegas Real Estate Agent, I wanted to share with you, my First Time Home Buyer Guide that I use when I help home buyers.  Whether you are a first time home buyer or not, these next few steps are for you.

Step 1 : Meet with a Realtor

Once you’ve decided you want to purchase a home, your first step is to find a real estate agent who can help you in the home buying process.  

When hiring a real estate agent, make sure they have the following qualities:

Full-Time Realtor

Proof of Sales History

Reviews from Past Clients

These three things alone will tell you if the agent you choose is an active agent who knows the ins and outs of the local Las Vegas Real Estate Market. 

( This website has all of my qualifications and can also be searched through google)

Step 2 : Meet with a Mortgage Lender

Often times, first time home buyers are afraid to meet with a mortgage lender due to the fear of not getting pre qualified for a loan.  

We want to speak with a mortgage lender because we want to know exactly if we can qualify for a loan, and how much can we qualify for.  These are very important to know because we need to know if we can proceed to the next step of the home buying process.

The lender will help us assess your financial situation, understand our buying power, and give us advice on the best loan terms.

In the end, they will provide us what we call a Pre-Qualification Letter that needs to be submitted along side our Offer when we find your house.  The Pre-Qualification Letter will let the Seller know that we hav met standard lending qualifications and we are a strong buyer.

Step 3 : Start the Home Search

Once we receive our Pre-qualification Letter from the lender showing our buying power, we can start looking for your dream home.  Our first step is to make a list of our Needs and Wants.  To be a successful home buyer, we need to be honest and list down the things we need and the things we would want in a home.

The reality in purchasing a home, you never really get all that you want.  At times, the house might not be in the right area, it might have a small bedroom but has everything else you are looking for, or its outdated but it has all the potential, etc.  This is why we need to list what is important to you and your family.

Step 4 : Make an Offer

Once we find a home that meets your ideal dream home, we will submit an offer.  Depending on the market situation, it could be a buyer’s market or a seller’s market, we will put a game plan together depending on the current market to help us succeed in your home buying goals.

Step 5 : Open Escrow

Escrow is a third party company that helps facilitate the home buyer and selling process.  

  • They are a third party that helps both seller and buyer.  
  • They do research on the home to make sure it will be clear for liens and judgements before it transfer to the new homeowner.  
  • They also hold all monies and will distribute at closing.  
  • They will produce a clean and clear title.
  • They make sure we close on your home.

Step 6 : Due-Diligence

In the middle of Step 5 : Opening of Escrow, we will conduct our Due-Diligence Period of 10-12 days. During the Due-Diligence Period, we will hire a home inspector to inspect the home.  During this period, it’s all about making sure that the home is in great shape and deciding if its really the home for us.

  • We will also be getting the home appraised
  • Request for Repairs based on the Home Inspection
  • Renegotiate terms if needed based on home inspection and appraisal.

We are not done renegotiating and representing you until we close and give you the keys.

Step 7 : Welcome to Your New Home

After 30 days from submitting an offer, you will be getting your keys.  I will be welcoming you home and go over a few things we need to do so you can transition into your new home smoothly.

Such things include:

  • Transfer of utilities
  • Home safety
  • Homeowner best practices
  • Home warranties and other contacts

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 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 our military members.

CONVENTIONAL

Conventional home loans are not insure or backed by the federal government.  Conventional mortgages generally pose fewer hurdle than FHA or VA lonas.  Down payment requirements for conventional loans could vary between 3% to 5% of the purchase price depending on the buyer’s financial situation.

Which one is the best?  The best one is the one that works best based on your current financial situation. As we move forward, The mortgage lender and I will guide you in understanding these types of loans and how they could affect us both good and bad.

(First Time Home Buyer Program)

The Nevada Home is Possible Program or also called the First Time Home Buyer Program was established by the state of Nevada in 2014.  The Home is Possible Program helps new homebuyers receive downpayment up to 5% of the purchase price.  

Program Requirements:

  • Qualifying income below $98,500
  • Home price below $400,000
  • Minimum credit score of 640
  • Must live in the home as primary residence
  • Home buyer education course
  • Must meet standard underwriting requirements

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