Posts in category: Home Buying

Things To Consider About Moving Out Of State

Posted by New Home Resource on March 18, 2016 in

Last week, we shared some helpful tips and contact information for those who are moving to Las Vegas from other cities. But that got us to thinking, perhaps we should back-up that train a stop, and discuss some of the things you should consider BEFORE making that big move.

Moving is big business. It’s estimated that about 40 million people in the U.S. move each year, and more than 7.6 million of them are moving to another state. Because of the proximity of Las Vegas, and the fact that it’s a top Sunbelt destination, we may perhaps have a higher percentage of those out-of-state moves than other places – considering our weather, recreation and entertainment, services, and all the conveniences offered in a major metropolitan area.

For those who choose to move to Southern Nevada to be near family or for work opportunities, those two factors will most certainly weigh heavier on the “Pro” reasons to come to Las Vegas, of course.

But if you’re simply trying to decide between one of several different cities to start out in life, find a new start, or in search of a place to wind down after a long career – here is a list of things to consider when comparing one city/state to another. (Because every little bit helps, right?)

1. Where Will You Live?

Whether you plan to rent or buy a home, there are resources that can help give you a fair idea of the cost of the housing market where you choose to move. Check around online at websites like Zillow.com or Realtor.com – as they can both offer some information about both the rental and buying markets. But don’t depend on them as your sole source of information. (And by the way, just beware of the numerous scam listings for both on Craigslist.org.) Check with the local Chamber of Commerce or the website for the city you’re interested in learning about – because they will often have “Moving to …..?” packages they can send to you that include a great deal of helpful information.

Of course, if buying a home is at the top of your list, it makes sense to find an experienced and reputable Realtor® in that city that you can work and communicate with. They’ll be able to help you pinpoint the most important features about your home and the area you wish to live, and as your ‘boots-on-the-ground,’ their assistance can be invaluable.

2. Where Will You Work?

Sometimes the job is what brings you to a new city. Sometimes knowing friends, family, or associates in an area will help you find employment more quickly when you move. But if you’re starting from scratch, research the types of jobs that are available in your field online at places like Indeed.com, or Monster.com – or any number of job-seeking/job-placement websites. It used to be that scanning the Want Ads in the local newspaper was the method to get a feel for employment in another area; but with the move to digital and the efficiency that offers to employers – your best bet is going to be starting with your search through the internet.

That’s not to say that once you arrive, it should still all be done “online.” Quite the contrary, employers are impressed with those who make the effort to present themselves in person for many positions – especially small businesses (of which there are many in Southern Nevada – because we’re not all about huge hotels and casinos, you know!).

3. Weather and Location.

Most people have a pretty good idea if they want to head for a place where the sun shines all the time, or where they can experience the four seasons. What they often fail to consider, though, is the proximity to those “life conveniences” that you’re used to, but may not be available in some places.

For example, if you’re in Las Vegas – the convenience of a major international airport within 30 minutes of virtually any point in the valley is something you get used to quickly – whether you’re the one traveling, or you’re picking up friends and family at the airport. On the other hand, if you’re used to that convenience and move to Vermont, you may not realize you’re going to be a 3-hour drive (one-way) to the Boston airport. The same thing applies to shopping, culture, entertainment, and many other everyday things that you may take for granted now, but might be giving up in your new city. A list of what you can – and can’t – live without can be very helpful in narrowing down your choices.

Those three things are only the beginning, of course. There’s also a need to give serious consideration to several other circumstances – some may affect your life, some may not– but could in the future, and some may not matter at all. But that list continues with such topics as:

• Taxes. State income tax can take a huge chunk of your income (except in places like Las Vegas, since Nevada has no state income tax at all!). Be sure to add this to your financial considerations.

• Quality Health Care. With the changing health care climate in the country, this has become a more important issue than ever before for many people. Don’t simply assume you’ll have easy access to the care you need – confirm it. (By the way, Las Vegas has many – and some of the best – hospitals and health care providers in the country – and resources are growing all the time.)

• Education. If there’s the slightest chance you may want to continue your education now or in the future, be sure to look into universities and college opportunities nearby. A quick look at each city’s Wikipedia page can be helpful to show what schools are available. (Las Vegas is the home of UNLV, CSN, and Nevada State College, along with a number of special trade schools from Touro University to Le Cordon Bleu College of Culinary Arts.)

• Transportation. Moving to an urban area? Then do you really need the expense of a vehicle? (Given Uber and Lyft and other options available these days.) On the other hand, the West is a bit of a different animal. Planned and developed during the heyday of the U.S. automobile, contrary to what people think – you can’t just pick up a friend at the Reno airport when you live in Las Vegas. Things are a bit more spread out here, and the public transportation that’s so available in the East isn’t really on display out West. So plan accordingly.

We figure that should be enough to get you started. A move is a big thing – and exciting time – and fills the future with unlimited possibilities. And if Las Vegas should become your moving-destination-of-choice, know that the crew at New Home Resource is here to help you find just the right new or resale home for your family’s needs. We love this place – and we’ll be happy to show you why!

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

4 REASONS YOU NEED A PRE-QUALIFICATION LETTER BEFORE SHOPPING FOR A HOME

Posted by New Home Resource on February 8, 2016 in

Yes – you really do need to seek advice on this topic. Why? Because it’s one thing to decide you need to find a new home for your family’s needs. It’s quite another to know how much home you’re actually qualified to buy. So before you start house-hunting online and looking at pretty house pictures, and before you give your favorite New Home Resource Realtor® a call. . . you should do one very important thing first:

Contact a mortgage lender to find out how much home you’re qualified to purchase.

And here are four very good reasons this should be the very FIRST step you take.

1) DON’T FALL IN LOVE – ONLY TO GET DUMPED!

Few things are worse than falling in love with “the perfect home” – only to discover that you can’t afford it. It’s a huge emotional let-down. For one thing, every home you look at after this will be compared to ‘the-one-that-got-away.’ So partly, by not knowing your buying parameters, you’ve set yourself up for disappointment at the very time when excitement and enthusiasm should be happening! Also, by aiming higher than you can afford – even if it happens unintentionally – let’s face it, can be a blow to your ego (whether you blame yourself or it’s just your ego taking a hit). But having the facts available about your financial capabilities before you begin shopping is the best way to avoid all of these (rather unpleasant) circumstances.

2) HOW MUCH MONEY DOES IT COST TO BUY A HOUSE ANYWAY?

The required down payment can vary greatly from loan type to loan type, your personal income, and your credit history. This is something you absolutely need – and want – to know before you dive into this project. Do you have enough money saved? PLUS – in addition to your required down payment, there are closing costs and expenses added to the bottom line that can equate to several thousand dollars more at the closing table. To greatly minimize these closing expenses, visit the “No Fee” lender at http://www.premiermortgagelending.com/

3) YOUR REALTOR® IS A PERSON TOO!

When you’re in the process of buying a home, it might seem like everyone is out to get something from you. But in reality, there is one person who is required both ethically and legally to put your best interests first: Your professional Realtor®. Of course, others you meet throughout the process may also choose to function that way. But for your real estate professional, it’s not an option (and truth be told, we prefer it that way).

That being said, you should also remember one very important thing: Your Realtor® is a person, too. Actually, we know you know that (in theory, at least) – but let us explain why it matters in this context.

Most real estate professionals are more than happy to go above and beyond on your behalf, and if you think about all the service they bring to the table, that can mean a lot. Doing extensive research to find properties in your preferred neighborhood, style, price range; with the right schools or proximity to your work. Getting all the property background and communicating with the seller and their agent to secure appointments – all that happens before even taking you to view it. It’s a lot of work up-front on your Realtor’s part – but this is what they do. You’re their client and they’re happy to do it because helping you make the right choice is the best part of their job.

But if you’re home shopping without knowing what your budget will allow you to buy – your Realtor® is going to expend a lot of unnecessary time and energy doing all those functions for properties that are literally just not an option for you. (And this is where the “person” part comes in.)

Just like anyone else, your Realtor® has limited and valuable time, energy, and resources. So you need to make sure that you don’t burn them out by using up those resources on homes that are outside your reach. Because if you do, there’s that much less of everything to devote to finding the right home that fits all your needs – and your budget – too.

4) SOMEONE ELSE WANTS MY HOUSE!

These days, it’s not as easy as viewing a home, making an offer, and opening escrow. Often, sellers have several buyers interested in their home at the same time, and they are able to pick and choose the buyer they want. Who they choose (assuming the sales price is a constant) will many times depend on which buyer can get to the closing table the fastest – and with the best terms.

Getting pre-approved and knowing exactly how much house you can afford before shopping for a home is key to winning-over a home-seller. Be the buyer who is prepared.

By having a pre-qualification letter from a mortgage lender in-hand, the seller knows you’re not only serious about buying, but you also have a good chance of getting to a successful closing. Even better, start taking the steps NOW to begin the pre-approval loan process. Given a choice, sellers will choose the “pre-approved” buyer over the “pre-qualified” buyer, any day.

What’s the difference between a pre-qualification letter and a pre-approval letter? It’s a HUGE difference!! (Click on this link to find out: “What are the steps to getting a mortgage loan”)

A pre-qualification letter is not a commitment from a lender to make your loan. In fact, it doesn’t include necessary information about their costs or their interest rate, either. Any reputable real estate professional will always recommend you start the formal loan process now, as opposed to just being pre-qualified. For more information about just how important this step is, we refer you to this article from Las Vegas-based Premier Mortgage Lending.

While most people are used to finding the right home and then seeking a mortgage loan – by turning those steps around and beginning the documentation process with your lender first, you can speed up the process considerably. Getting many of the necessary documents to your lender early and becoming a pre-approved buyer can ultimately put your offer at the front of the line! You become the best buyer, in the right place, at the right time – and BINGO! That house is yours.

8 Ways Home Sellers & Buyers Can Ensure A Successful Transaction

Posted by New Home Resource on October 13, 2015 in

No two real estate transactions are ever going to have the exact same set of circumstances. But there are things that are rule of thumb for both buyers and sellers, and your Realtor has experience with what those things are. Without them, the odds are that getting to the finish line will be tougher for you, no matter which side of the transaction you’re on. These are some tips that can make the difference.

A List of “Do’s” for Sellers

You love your home and you just assume that everyone else will see what you do and love it, too. Maybe they will – maybe they won’t. But if you don’t make an effort to focus on the positive aspects of it, how do you expect a prospective buyer to see in the few minutes they have to view your property (and compare it to all the others they see)? Here’s a list some of the most important “Do’s” to make your property the one they want to buy:

1) Yes, staging your home by getting rid of clutter and bringing in furniture or accessories can help it sell. (And that includes the garage.) Also, buyers love to see lots of wide-open counter space – so be sure to clear off countertops in the kitchen and the bathrooms.

2) “Does it really matter if we have the carpets cleaned or take the family photos off the wall?” Yes! A buyer needs to walk in and have it look good, feel good and smell good. Put yourself in the shoes of the prospective buyers as if seeing it for the first time. Perhaps unmade beds or laundry on the floor shouldn’t make a difference – but a mess leaves an impression that’s hard for a buyer to overcome. And whether or not it actually matters to them, you should take advantage of every opportunity to make your home as appealing and showroom-ready as possible.

3) At a minimum, you should follow these steps for every prospective buyer:

a) Have your home clean and smelling good. (By the way, keep in mind that not everyone is a fan of plug-in air fresheners or scents. In fact, some people are quite physically sensitive to them, and an adverse reaction may mean they have to leave your home before they were able to fall in love with it.)

b) A comfortable temperature – whether heated or cool depending on the season.

c) Turn on the lights – it’s welcoming and inviting – and makes it clear there’s nothing about your home to hide.

d) Consider their comfort – set out some snacks or even just bottled water. If nothing else, it will cause them to remember your house out of the sea of competitors they visited that day.

4) The takeaway from all the above? The longer a house is on the market, the less likely you are to get fair value. So you really want to position yourself to be the one that sells, not the one that languishes on the MLS listings.

And a List of “Don’ts” For Buyers

You found “The House.” The one you want to live happily-ever-after in. It’s great to be excited and enthusiastic; to plan for the future and begin creating the home you’ve always dreamed of. But buyers need to remember to do first things first:

1) For many buyers, the minute they get preapproved for a mortgage – they start planning. Not for how to get to the closing date – but for how they’re going to decorate, furnish, and get all the things they’ll need once they move in. So they start running up the cards and opening new lines of credit to buy things for their home-to-be. But that preapproval letter is just one of the first stops in the home buying process — it’s not the end-point.

2) Many (especially first-time) buyers don’t realize that just before closing, a lender will re-examine a prospective buyer’s financial situation — complete with a recent copy of the credit history and other financial re-verifications. If those numbers have changed for the worse (salary decrease, higher card balances, new lines of credit), then it could mean the terms of the loan have changed. You may be charged a higher interest rate, or even lose loan approval entirely – because the changes to your credit and financial circumstances have changed your debt ratios. In fact, the number of buyers who get denied as a result of these reasons is significant. Don’t be one of them.

3) The hard lesson that you don’t want to learn by personal experience? Never get new loans or start using credit cards more heavily until after you’ve actually closed escrow on the home.

Since the first order of business is to complete either your purchase or sale transaction, these are important facts to keep in mind so you can go on to enjoy all the benefits of ‘life-after-close-of-escrow’ – whatever your plans may be.

What Could Possibly Go Wrong With My Real Estate Transaction?

Posted by New Home Resource on October 5, 2015 in

Home Buying

If you’ve bought or sold real estate before – and it all came off without a hitch – congratulations! It actually happens most of the time just that way. Everyone does their job in a timely manner and all the pieces fall into place right on schedule. It’s a beautiful thing to be a part of.

But you probably know at least one person who wasn’t quite so lucky, and it’s those stories that ‘scare you straight’ – inspiring you to be more diligent about making sure you choose the right real estate professionals to work with. From your Realtor to your lender, the Title Company to the home inspector – all it takes is one misstep from anyone who is a party to a deal to throw the entire transaction into peril (or at the very least, delay its progress).

So while the list of the things that CAN go wrong can’t all be named here, there are a few ‘biggies’ that happen more often than others. And with a little due diligence, and to encourage you to do some forward-thinking (and ask the right questions at the right time), we’d like to bring some to your attention in the hopes that you can avoid these pitfalls in your next real estate endeavor.

Seller doesn’t make full disclosure on Sellers Real Property Disclosure Form (SRPD)

We recently went into greater detail on this very topic on a recent blog post, explaining how a Seller’s failure to complete this information as fully and accurately as possible can cause some very big – and very expensive – issues down the road. Sometimes, many years down the road. But if misrepresentations should come to light during the sale itself, it can cause the Buyer to simply cancel the purchase outright. Such discoveries, made either before or after the closing, place the Seller in a very untenable (and unwise) position. It’s simply not worth the fallout to fail to disclose information.

Buyer doesn’t tell the truth on loan application

While it may seem that it’s impossible for anyone but the Buyer to know if they’re being honest on their loan application (after all, who reads minds? or knows the details of someone else’s financial affairs?) – the fact is, safeguards are available. Not only to the lender, whose responsibility it is to verify and confirm these matters – but the Seller should be advised by their real estate professional to add a contingency to the transaction or to set a deadline by which full and formal loan approval must be received. If such conditions aren’t met by the buyer during the time frame allotted, it’s a red flag that can alert all parties much earlier on – rather than waiting for closing day only to discover that the Buyer can’t perform.

Unexpected “surprises” about the property

This actually can cover a wide spectrum of issues. It could arise from problems the Seller didn’t know about – but were discovered when the Buyer had an inspection performed (such as mold, termite damage, structural problems and more). Sellers can avoid such surprises by having a pre-listing home inspection performed themselves. Often the question of repairs arises – so costs and responsibilities must be clarified. Or maybe there’s a misunderstanding about items considered “fixtures” (things that stay with the home) and “personal property” (things that the Seller can take with them). If you’re not planning to leave the appliances behind with the house when you move – you need to put it in writing.

In fact, now that we think about it – there’s a huge number of situations that can affect the status of a real estate sale. That could be one of the reasons everyone has to sign (roughly) 5,000 documents during the transaction! (Okay, we’re exaggerating, a little.)

But in truth, you can rest assured that a licensed and experienced real estate professional is knowledgeable about all these things and can help you avoid problems like this – along with a few hundred others, too. It’s one of the reasons they are paid for their expertise – and why you want one to be working for you on your behalf. (Perhaps we’ll discuss that topic in a future post!) Because few things are more disappointing than a “closing day” . . . that just doesn’t happen.

Home Ownership Isn’t Always About The Money

Posted by New Home Resource on September 21, 2015 in

We’ve written before about many of the financial reasons that owning a home makes good sense (especially right now – with interest rates so low and rents so high). And you’ve probably seen many other headlines and articles explaining the monetary benefits that you gain when you buy a home, too.

But let’s set the money aside for a bit, and talk about the psychological aspect of being a homeowner. Because while saving money each month and building long-term equity in a property is certainly important for your future, there are few of us that get that “warm and fuzzy” feeling from our financial statements.

Ahhh…..but memories, that’s another story, isn’t it? Everyone has those – whether they’re happy or sad, they’re the things we cherish, or that spur us to achieve. In essence, they’ve made us what we are today – it’s just human nature. Those memories are formed by the people in our lives, things that have happened to us, and how we shaped our environment. And those three things are precisely what we’re referring to.

Relationships

There is a great sense of belonging to a community once you own a home. You feel more attached to the city and its people, and often even get involved with neighborhood and community events. When you’re a homeowner, you’ve put down roots – and you’ve done it in the midst of many other people with the same mindset. Your neighbors become your friends, sometimes even your family (or at least they seem that close). You form relationships that can last for years – even a lifetime. And as true as that is for adults, it’s even more important for children.

In a home of their own, kids have the security of knowing that “home” means just that. It belongs to them, and they don’t have to worry about suddenly having to change schools and reestablish their friends and lives at the whim of a landlord. They’re able to develop long-term friendships – indeed, they wouldn’t even need to think about them any differently. They get to know your neighbors, who will often watch out for their welfare, too. Studies also indicate better school performance and youth behaviors in children who live in a home of their own – in addition to greater self-esteem.

Research has long proven that people who have healthy relationships with others are happier and less stressed. Owning a home is one of the best ways to give yourself and your family the gift of building those friendships.

Freedom

One of the most overlooked reasons for owning a home is the freedom you get once you’ve achieved this major life goal. Many homebuyers discover that once they buy a home, other aspects of their personal life seem to just fall into place. It’s a huge accomplishment, and because of that, it gives people more confidence in themselves and allows them to pursue other goals in life.

On top of that, there are some incredible perks that come with the term “homeowner.” Just think about it: Your space is yours to do what you please. Indulge your passions with renovations (no reason you can’t have the greatest kitchen in the neighborhood!), paint, plant, and decorate to your heart’s desire. You can choose to make your home the gathering place for your friends and family by installing a pool and landscaping a back yard to die for – or put up holiday decorations that rival the White House display.

No more white walls and beige carpet (not to mention really ugly vinyl!). And no one but yourself to grant permission to enhance your environment (except maybe an HOA). This is your space. Make it beautiful, make it useful, make it playful – it’s all up to you.

Security

Owning a home is like a touchstone, it’s a way of anchoring your life to firm ground. It creates a solid base from which you can go forth in the world to accomplish many things, whether that includes raising a family or starting a business – or following a dream.

Other proven benefits of the positive impact of ownership is that it allows access to neighborhoods with better schools, and to better physical and social conditions. Single-family homes also tend to be maintained at a higher quality, have lower crime rates, and homeowners enjoy a heightened sense of personal accomplishment and social status. All of these elements together combine to lead to greater life satisfaction, resulting in better physical and psychological health.

Given these reasons alone, it’s no wonder that owning a home has always been “The American Dream.” When you combine them with the financial security home ownership offers, too – there’s no reason that dream needs to change, if you ask us.

HONESTY IS CRITICAL ON SELLERS REAL PROPERTY DISCLOSURE (SRPD) FORM

Posted by New Home Resource on September 14, 2015 in

Remember how you used to cringe for those people you’d see on television – as you watched Mike Wallace walk up to them with a cameraman in tow? It was everyone’s worst nightmare, because it meant some piece of information that they’d rather had stayed long buried was now front page news.

That’s pretty much the way sellers feel when their buyers discover that perhaps they weren’t completely forthcoming in the information provided on the Sellers Real Property Disclosure (SRPD). Because that’s usually about the time the buyer files a lawsuit against the seller, too. (Enter: Mike Wallace-like sinking feeling.)

Anyone Have A Pen?

Anyone who has bought or sold a home before knows that if this is going to become a digital world, it hasn’t happened yet. Piles of papers require signatures from both buyers and sellers – from contracts and disclosures to releases and quitclaims. It’s not uncommon for each party to have hundreds of pages of documents to read, complete, acknowledge, or sign.

But in that crush of documents, there’s one in particular that requires specific information that is often available from only one party: The Seller. And that is the Sellers Real Property Disclosure. It’s perhaps one of the most informative and relied-upon documents out of the bunch – because real estate agents and potential buyers will be reviewing it carefully as part of the offer process.

What Is A Sellers Real Property Disclosure?

Simply put, this is the seller’s chance to lay out anything that can negatively affect the value, usefulness or enjoyment of the property. The latest version of your state’s SRPD form is normally provided by your real estate professional, and typically requires you to answer a set of specific questions – in detail – about the condition of the home and its components. It’s the seller’s obligation to disclose these kinds of issues, and the buyer’s responsibility to be completely aware of past problems. While the types of disclosures required will vary from state to state with regard to the information that must be shared with a buyer, they can also perform another very critical function: SRPD’s can protect the sellers from future legal action.

What Potential Buyers Will Look For

As an example: It’s standard practice in real estate to give a home a fresh coat of paint before putting it on the market. Nine out of 10 times, the intention is to show the property at its best. But every so often, the seller paints the house in hopes of covering something up – such as a water leak. In reality, anything from a leaky window to loose siding, or remodeling to pets living in the home – all these things and more need to be honestly and thoroughly answered in full on the SRPD form.

Fortunately, having the latest version of these forms available to complete will help jog your memory, because the questions asked are quite specific and will cover any mechanical or cosmetic issues that have proven to be a legal problem for other transactions (generally discovered by previous lawsuits).

Unfortunately, in some cases sellers will breeze through the SRPD quickly and without giving it much thought (remember that pile ‘o paperwork we mentioned?) – and perhaps unintentionally forget to note that the air conditioning required repairs 6 months ago, or that some roof tiles were replaced after a storm a few years back. After all – there was a problem, it was fixed, so not it’s not a problem anymore, right?

Wrong. While in theory that concept may work, if a problem should occur again with any such items after a new buyer takes occupancy, there is the potential for liability on the seller’s part because they failed to make full disclosure to the buyer about its history.

What Happens If A Seller Fails To Disclose?

Remember what we said about Mike Wallace? It’s sort of like that. Because once an issue arises and the buyer discovers that they weren’t given full disclosure – the party begins. The problem is that the only ones invited to this party are buyers, sellers, real estate agents, inspectors, attorneys, mediators, and judges. And everyone discovers that no one seems to like each other very much.

Plus – it costs money. A LOT of money. All those professionals getting involved and all the repairs and inspections necessary – they’re not free. At the end of it all, if a judge determines that the seller was at fault for failing to provide information to a buyer about a pre-existing condition, it’s more than likely all going to come out of the seller’s pocket. From court costs and expenses, to repairs and even punitive damages – and it can amount to a very pretty penny.

In some cases, sellers do decide to deliberately omit information from an SRPD (completely against the advice of their real estate professional, by the way) – perhaps thinking that it’s been resolved, it won’t be discovered, or it can potentially be blamed on another source by the time it is found.

For those sellers who might be thinking along these lines, we have just one word for you: Neighbors. The same ones who may have helped or commiserated with you over a costly repair or problem . . . are now going to be living right there with your new buyers on the same street. Let’s just say – it’s a gamble that’s not worth taking.

In short, full disclosure up front is the only way go to. In some ways, it can actually help a seller, in fact. It shows that the seller is thorough and upfront, and that goes a long way toward giving potential buyers peace of mind.

Buy or Rent? And How Should You Decide?

Posted by New Home Resource on September 9, 2015 in

It’s the rare individual who gets to leave their parents’ home and head straight into buying a place of their own. Most of the time, we’re in a hurry to declare our independence – and we see the biggest part of that as having a space to call our own (even if it is rented).

In a way, that’s a good thing. Because it gives us the opportunity to fully experience one end of the spectrum (renting). But on the other hand, it means that we don’t necessarily know much about the pros and cons of owning our own home. So we’d like to help lay out some of the more important reasons why you might – and might not – want to jump into homeownership with both feet.

Rent vs. Buy

Why to Buy? Here in Las Vegas, it’s been shown that renting can actually cost twice as much as owning. Got that? Twice as much. Ouch. So whether your budget is stretched by your current costs of renting or you want to get more square foot for your dollar, those who qualify for a mortgage loan (and there are more of you than you might think!) – should give some serious thought to making that investment in themselves and starting to build equity in a property, rather than contributing to their landlord’s coffers.

Why to Rent? If you’re not sure about where you’re going to be for the next five years (as a general rule of thumb) – then renting may be your smarter option. Those who may relocate for work or other purposes may not fare as well financially when you consider the costs involved with home and mortgage loan acquisitions, moving expenses, repairs that may be needed, etc. Having the freedom to move quickly for an important job opportunity can also play a deciding factor in the trajectory of your career. So if that’s a possibility – and you can’t afford to maintain two households for a short period of time while your current home sells – that’s another mark in the “reason to rent” column.

Financial Benefits

Why to Buy? In addition to paying less out of pocket per month for your monthly payment on a mortgage, you also have the assurance of knowing that your monthly mortgage payment stays the same – unlike rent payments that can climb regularly. (Unless you’ve opted for an Adjustable Rate Mortgage). There are also the benefits of tax write-offs. Your mortgage loan expense is deductible, and certain repairs or upgrades may carry tax benefits for saving energy resources.

Why to Rent? More flexibility, less responsibility. If you’re a renter and experience a life-changing circumstance – you’re able to adapt more quickly and relocate to fit your financial situation (as opposed to waiting to sell your home). When something goes wrong with the plumbing or the air conditioning, there’s no landlord to call and that (usually unexpected) expense is your burden. And if you’re focused on another financial goal entirely – starting your own business? planning to travel? or one of a million other reasons – then sinking money into a property may be pretty far down on your list of things to do.

The Psychological Aspect

Why to Buy? There is something reassuring about knowing you will always have a place to call “home.” The psychological impact of knowing when you lay your head down at night you’re in a place that belongs to you simply cannot be overstated. There’s no uncertainty of wondering if your landlord is going to sell, renew your lease, or raise the rent. For many – having the ability to paint, decorate, remodel, and make additions or improvements the way you want them is key. For some, it could be as simple as having your own garage or driveway to park your car. And if you’re a pet-lover – well, you know that owning has it all over renting in that department!

Why to Rent? Many people feel that those same reasons to buy are more of a commitment than they want to make. So if that worries you financially (or any other way), there’s definitely something to be said for renting and letting others carry the burden for you (aka, your landlord). If you’re still exploring career options or don’t know where you want to settle down yet, those are more reasons to delay buying a home of your own. “Freedom” is a powerful word, and everyone has their own definition of what it means.

Of course, these are just the tip of the iceberg, and there are generally as many reasons to buy – or not buy – as there are individuals exploring their options. The good thing is that for those who choose the security of a place to call a home of their own, the local real estate market is stable, interest rates are still low, and obtaining a mortgage has become easier and far more understandable than ever before.

Premier Mortgage Lending is one local Las Vegas mortgage broker that offers a variety of products – from true “No Fee” traditional loans, to second-chance financing (AnotherChanceNevada.com) that can help buyers get back into their own home as early as one day after a short sale or foreclosure. Plus, they make it easy to get started and see if you qualify with their secure online application process.

Still not sure where your chips fall on the “Buy or Own?” question? We’ll be happy to help you explore your options further. Just give us a call!

The Truth About Builder Incentives and Seller Concessions

Posted by New Home Resource on August 17, 2015 in

If you’re a seasoned homeowner – or even getting ready to make your first leap into home ownership – the odds are you’ve seen those ‘special offers’ in real estate listings. They are, after all, designed to catch your eye – with phrases like: “$20,000 in free upgrades!” or “We’ll pay up to $10,000 of your closings costs!”

That’s advertising at its best. It piques your interest and causes you to begin comparing that home you really fell in love with . . . one you didn’t like nearly as much. But hey – who wants to pass up a great deal, right?

The fact is, in real estate, nothing is as “free” as it seems. In many cases, when you add up the cost of all the strings that come attached to these ‘great deals’ – “free” can end up costing you a lot more than you can imagine.

Builder Incentives

Whether you’re in a buyer’s or a seller’s market, you’re going to find that upgrade incentives are often a builder’s stock-in-trade. But in order to get ‘freebies’ such as free upgrades or paid closing costs, buyers often have to agree to certain conditions. These can include a number of things – such as paying list price, making an immediate purchase, or even using their sales agent to sell your existing home.

But perhaps the most costly of these conditions can be to require you to use the builder’s “preferred lender.” As one local Las Vegas mortgage broker, Premier Mortgage Lending, explains in greater detail in a recent article, the vast differences in the fees and rates for mortgage loans can easily add up to thousands of dollars in unnecessary costs for a borrower. The bottom line is that when a builder takes away your options to shop for the best mortgage loan, the odds are that those paid closings costs they’re referring to will probably – in one way or another – actually be coming out of your own pocket. (Suddenly, ‘free’ isn’t sounding quite so “free” anymore, is it?)

Seller Concessions

When it comes to seller concessions, there’s only one way to say it: Unless the seller offers you a concession after the final purchase price has been agreed upon – you’re going to be paying for it, one way or another.

Think about it: It’s one thing if, for example, you agree to pay $200,000 for a home; then after the fact, the seller offers to pay 3% of your closing costs. But that’s almost never how it works. In a typical sale – you make an offer first, and in that offer you ask for a 3% concession towards your closing costs. And then the seller accepts your offer.

But wait – that means you could have just as easily purchased that home for 3% less. And as most buyers will usually finance the maximum loan amount for their purchase, that means you just earned the privilege of financing your own closing costs over the next 30 years. Ouch.

The examples described above are just two of many situations where builders and sellers lure buyers by making offers that sound “too good to be true.” But in most cases, it’s good to remember that’s exactly what they are. Knowing that they’re operating with a “back-door” to your wallet will make it easier for you to see through the smoke and mirrors and know exactly what you’re paying for when buying a home.

And we’d like to give you one more key piece of advice that every home buyer should be aware of: Working with your own real estate professional can help you avoid these pitfalls – as they are required by law to operate in the best interests of their client: You.

Las Vegas Poised to Continue 2015 Real Estate Gains Into 2016

Posted by New Home Resource on August 6, 2015 in

This year, Las Vegas has been reaping the results of the long-term recovery in the real estate market with many economic indicators headed in the right direction – Up. A drop in unemployment, more new homes starts, an increase in the sale of resale homes – overall, we’ve seen a consistent improvement each month across the board. And that’s a welcome change for home owners / sellers, buyers, and the real estate industry as a whole.

And the good news continues: New home builders are seeing more first-time buyers entering the market, and as the job market improves, Millennials are beginning to transition from renting to owning. Single-family home sales have hit a 9-year high nationwide – and here in Las Vegas, the median price of homes has increased by 10% compared to June 2014.

Granted, for several years, it seems there’s been nowhere for the market to go except up. Due to the uncertainty in the job and housing markets over the past seven years, 7.4 million home sales have been lost. And while many of those sales may never be recovered, the housing demand is now being driven by population growth, higher employment, and improved incomes. It’s all great news – with industry analysts predicting that the U.S. housing market should continue to improve into 2016.

Adding to this resounding recovery is the fact that more buyers are once again able to become owners. Those who were hit hard by the recession have spent the interim years rebuilding their credit and recovering financially. And many who experienced short sales or foreclosures have moved past the mandatory imposed waiting periods imposed before they could obtain a new government mortgage loan. (Although thanks to a special financing program from one local Las Vegas lender – Premier Mortgage Lending – buyers are also eligible to get non-traditional financing as early as one day after a foreclosure or short sale is completed. Visit AnotherChanceNevada.com for more information.)

When you combine all these excellent reports from all sectors of the U.S. economy – and add in that mortgage interest rates are still at long-time historic lows – more and more buyers are able to pick the home they love and receive that “Loan Approved” phone call we all hope for.

But to find out if you’re able to get that good news, you have to ask! Discover if you can get back into home ownership by contacting a real estate professional or mortgage lender today. Here at New Home Resource, we’re making it possible for Las Vegas residents to do it every single day. You could be among them.

Not All Mortgage Loans Are The Same – Shop, Ask, & Know These 15 Lending Terms

Posted by New Home Resource on July 27, 2015 in

Whether you’re new to homeownership, or in the process of hunting for your 10th residence – the one thing that most of us have in common is the need for a mortgage lender. (Any recent lottery winners out there? If so, you have our permission to skip this article.) And thank goodness for mortgage loans, because without them, it would take an awfully long time to scrape together the pile of cash needed to buy a home.

One thing that many buyers don’t realize, though, is that much like any other products we buy – the cost of a mortgage loan can vary widely from one lender to another. In fact, mortgage lenders themselves fall into different categories – such as banks, mortgage bankers, and mortgage brokers. For those not in the industry, the assumption is usually that all three of those are pretty much the same. But as real estate professionals who have worked with scores of different lenders, we can assure you, the loans they offer – and the costs they charge to obtain those loans – can be very, very different.

Since the economic downturn and housing market crisis, new regulations have gone into effect (Dodd-Frank) that were designed to assist and protect consumers seeking mortgage loans. One of the benefits to buyers coming soon is the implementation of new loan disclosure requirements (they go into effect nationwide on October 3, 2015).

One other benefit is that many of these laws placed restrictions on the fees that mortgage brokers, specifically, can collect from buyers for a home loan – and that is one of the reasons that all homebuyers should shop around. (Note: Some real estate professionals will guide clients to one particular lender, but there can be reasons for this that may not be financially beneficial to the borrower. They are known as “Market Service Agreements, and New Home Resource does not engage in this practice. Click here to learn more on this subject.)

One local mortgage broker who has taken a consumer-friendly approach with its home loans for Las Vegas valley homebuyers is Premier Mortgage Lending. Taking its cue from the Consumer Financial Protection Bureau’s (CFPB) new “Know Before You Owe” program, Premier Mortgage even created a complementary website, KnowBeforeYouOweNevada.com to help consumers be aware of their rights and options – and to offer plain-language explanations to your home loan questions.

Embracing the concept of ‘mortgage loan transparency,’ Premier Mortgage is one of the few Las Vegas lenders that offers a true “No Fee” home loan – meaning: No Loan Origination, Underwriting Fee, or Documentation Fees, which can literally save a borrower thousands of dollars out of pocket. That can mean the difference between getting the house you want – and the home you love. Or even in your ability to hear the words “Your loan was approved!” – rather than “We’re sorry to tell you . . .”

Shopping around for the right home loan is starting to sound like a pretty good idea now, right? We suggest contacting numerous lenders, gathering their Loan Estimates together, and then comparing them line-by-line. The CFPB has some tips here on how to do that, too.

In your search for the right mortgage lender, it’s helpful to have a good grasp of the terminology, too. Knowledge is power – so we’re going to leave you with a list of 15 lending terms that every homebuyer should be familiar with:

1. Adjustable Rate Mortgage (ARM). A type of loan where the interest rate changes periodically, up or down. Rates change generally according to movement in the financial market.

2. Annual Percentage Rate. The yearly cost of finance charges (interest, loan fees, service charges, mortgage insurance or other items).

3. Appraisal. An opinion of the fair market value of a land parcel and any improvements at a given point in time. This evaluation generally determines what the property would sell for in the current marketplace.

4. Cap. The limit to the amount an interest rate or monthly payment can increase for an ARM; may apply to either each adjustment or over the life of the loan, or both.

5. Closing. The final step in the purchase process when, through a licensed escrow holder (a neutral third party) the payment of the purchase price to the seller is completed, the Buyer’s note and loan agreement are delivered to the lender, and the deed to the buyer and any mortgage (trust deed) are delivered to the county recorder’s office for recordation.

6. Conventional Loan. A mortgage-secured loan that is not insured or guaranteed by a government agency such as FHA or VA.

7. Credit rating. A numerical score formulated by a credit bureau to assist a lender and seller in determining if a potential home buyer is a good credit risk. Your credit score can make a big difference in your costs and interest rate – so take good care of it.

8. Earnest Money. Money the buyer gives the seller to motivate the seller to enter into a purchase agreement with the buyer. These funds are later applied to the purchase price of the home, but are also funds at risk in the event the buyer breaches the purchase contract.

9. Fixed Rate Mortgage. A loan with an interest rate that remains the same for the entire repayment term.

10. Government Loan. FHA: This type of mortgage is backed by the Federal Housing Administration (FHA). VA: This type of mortgage is backed by the Department of Veteran Affairs. The maximum loan amount for these types of loans varies by county.

11. Mortgage Lender. This term includes banks, mortgage bankers, and mortgage brokers. Banks and mortgage bankers are typically ‘direct lenders’ who offer loan programs and services from a single bank. Mortgage brokers have the ability to shop your loan (using a single loan application) with numerous banks and lenders simultaneously to find you the lowest interest rate and/or the best loan program.

12. Equity. The difference between what a home is valued and what is owed on it.

13. PITI. Principal, interest, taxes and insurance; a quick way to reference your combined monthly house payment.

14. Principal. The amount of a loan, not including interest or other charges.

15. Private Mortgage Insurance (PMI). A type of insurance that is usually required by a lender if your down payment or equity is less than 20 percent of the loan value. PMI insures the lender against loss if you were to default on your mortgage.