This popular spot that attracts millions of tourists from all parts of the globe every year because of its world-class casinos, entertainment, and nightlife is the perfect place to live the life. Living in this resort city in Nevada is like being on a lifelong vacation.
If you are considering buying a home in Las Vegas, it will be in your best interest to hire an experienced and skilled real estate agent. Home buying in the Sin City can be time-consuming and a bit overwhelming, especially for first-time buyers. Knowing what steps are involved in the home buying process and having the right agent by your side can help ensure that you find the perfect home within your price range.
Here is a step-by-step guide on the home buying process in Las Vegas, NV:
Assess Your Financial Situation
- Keep in mind that most lenders follow the 28/36 rule when deciding whether to approve your mortgage.
- Your total housing costs including your future mortgage should not exceed 28% of your monthly income.
- Your total monthly debt payments (debt-to-income ratio) should not be more than 36% of your monthly income.
- Lenders are less likely to approve your mortgage if you have a high debt-to-income ratio, but they may reconsider if you have a high credit score.
- Your DTI will affect the type of mortgage you can apply for. Generally, a conventional loan requires an after-mortgage DTI under 36%, a VA loan under 41%, and an FHA loan under 43%.
- A conventional loan requires a down payment of 20%.
- Government-backed loans, like VA and FHA loans, require lower down payment amounts.
- Legally closing a real estate transaction involves closing costs between 2% to 5% of the loan amount.
Get Pre-Approved for a Mortgage
- A mortgage pre-approval letter shows that you are financially ready to put in an offer.
- Most sellers, in general, won’t show you their home unless you have a mortgage pre-approval letter.
- Getting pre-approved for a mortgage gives you and the seller confidence that you’ll be able to get financing and close the deal once the seller accepts your offer.
- Compare interest rates from different lenders for 15-, 20-, and 30- year mortgage terms.
- Note that, with a shorter mortgage term, the interest rate is lower, but your monthly payment will be higher.
- Choose a Lender who will work with you to ensure that you close the deal.
- Make sure that you maintain your credit after you are pre-approved for a mortgage.
Find a Local Real Estate Agent to Help You
- A local Las Vegas real estate agent will be your best ally during the home buying process.
- Aside from showing you your best home options, a real estate agent can also give recommendations for other services like lawyers, lenders, and escrow companies.
- Once you find a house, your real estate agent will make sure that you get a great deal.
Decide Which Neighborhood is Right for You
- Do some research on the current home sale prices in the neighborhoods in Las Vegas, NV and narrow down your options based on your price range.
- Check past home value trends to have an idea of how much your home’s value can appreciate over the years.
- Evaluate how well each neighborhood meets your personal needs and preferences.
Start House Hunting
- Make a list of priorities before you set out to view homes.
- Discuss your list with your agent so they can advise you what the homes in your price range and target neighborhood are like and let you know where you might have to make concessions.
- Keep in mind that, in Nevada, there are more homes available on the market in May, while there are almost 18% fewer homes available in July.
Make an Offer
- Once you find a house you love, make an offer and convince the seller to sell to you.
- In Nevada, homes typically stay on the market for 42 days.
- You might have to make an offer sooner on months when homes spend fewer days on market than the annual average.
- Talk to your agent as to how long you have to make an offer, as they would know the current state of the market.
Perform Due Diligence
- Once the seller accepts your offer, you will have to perform a series of due diligence steps to ensure that the home you are buying is exactly what you signed up for.
- Inspections will give you peace of mind regarding the condition of the property.
- Hire a licensed inspector and make sure they check out the following parts of the property:
- Electrical system
- HVAC system
- Septic system
- An appraisal will be required by your lender to ensure the house is worth the amount of money they are giving you.
- After inspections and appraisals, you can go back to the negotiating table if something unexpected pops up.
Do a Final Walkthrough Before Closing
- Before the closing or settlement of your real estate transaction, you will be allowed to do a final walkthrough of the property to ensure that it is still in the expected condition.
- During the walkthrough, create a checklist with your realtor to make sure that you do not miss anything.
- Inspect the ceilings, walls, and floors for: cracks, chipped or peeling paint, and other imperfections.
- Test all the light switches and electrical outlets.
- Run the water and check the pressure and temperature, and look for leaks.
- Flush all toilets.
- Check and make sure that all the keys are working.
- If there are any appliances included in the sale, test if these are all working.
- Check the heating and air conditioning system.
- Open and close all windows, and check if they lock and that there are no unexpected drafts.
- Make sure all the belongings from the previous owners have been removed.
Close the Deal on Your Las Vegas Home
- This is the last and the most important step of your Las Vegas home buying process.
- During closing, or settlement, you and the seller will be signing all the necessary legal documents and the ownership of the house will be transferred in your name.
- The lender will be issuing the check in the name of the seller, and you will get the keys to your new home.
- Ask your real estate agent to be present by your side at the time of closing, so they can make sure that all paperwork and legal formalities are completed.
- In addition to signing all the forms and legal documents, you will also be paying closing costs at the close of the deal.
- You will also be receiving the title of the property and all other documents related to the purchase of your new home.
Knowing all the steps involved in buying a house in Las Vegas, NV, and having a reliable real estate agent by your side to let you know about the current real estate trends in the area will enable you to make better choices. Feel free to give us a call at 702-710-3798 or send us an email at [email protected] so we can help you buy your dream home.