financing

Wow. You’re about to be a first-time home buyer. That is a really, really big deal – and don’t let anyone tell you otherwise.

It’s a commitment – that’s for sure – of both your time and your money. But there’s something inherently different and satisfying about spending time working on your own home, and after all – we all have to live somewhere, so why not invest in yourself instead of a landlord’s real estate portfolio?

There is a lot to think about before you decide to buy, of course. For example: Is this the city you plan to stay for a few years? Do you know how much you can comfortably afford? Do you have enough down payment? (To find out more about that, we recommend you visit Premier Mortgage Lending to learn about their new 1% Down Loan Program.)

A while back, we talked here about many other things to consider before making the move from “Renter” to “ Home Buyer.” But if you’ve already reached the decision to start shopping for the perfect place to call your own, there are a few things about the process itself. Read on.

STEP 1: Get Your Finances and Credit in Order

In today’s rapid-fire real estate market, the last thing you want to happen when you find “The One” is to lose-out on it because you don’t have – or can’t get – mortgage loan approval. That’s why your first step should be to get a copy of your credit report. (You’re entitled by law to get a free updated credit report each year.)

STEP 2: Visit at Least Two Mortgage Lenders

Getting your credit report is great, but knowing how to evaluate it is something else. And there are many more steps in the mortgage loan process than just credit. You need to find out what those steps are, how your circumstances measure-up, if there are any things you need to fix or change, and discover how much of a mortgage loan you can qualify for. That last detail will also let you know the price range of homes you should be considering. (Trust us, there are few things worse than falling in love with a home that’s out of your price range!)

But why visit two lenders? Read our lips: So you can compare fees and interest rates. Not all lenders are the same – nor are all mortgage loans. Their fees can vary widely – from $0 to as much as 4-5% of your purchase price. If the interest rates are equal, you can see just how much your get-in-the-door / cash out of pocket will be. You’d be surprised how big the difference in cost can be. (And remember, just getting a loan estimate does not commit you to anything. You’re free to shop around as much as you want!)

STEP 3: Find the Right Realtor®.

Everyone has “a friend” who sells real estate. Or maybe it just seems like it. But our experience has been that once you reveal you’re in the market to being a home buyer, suddenly you discover that your cousin’s ex-husband’s sister-in-law’s best friend’s dog, Lulubelle, sells real estate – you should call her! We hate to be blunt, but here’s our take on that suggestion: W.R.O.N.G.

Why, you ask? (while thinking that we have an ulterior motive – which we don’t, but how do you know that?) Well, that’s precisely the point. You don’t know that. And you don’t know Lulubelle, either. Having a relative or friend that sells real estate is no way to choose your Realtor®.

First of all, if they have the experience, reputation and knowledge that you need in a Realtor®, you would already know about them. Those agents have spent long hours, days, months, and years building that reputation and gaining that knowledge. And they don’t typically need to go searching for new clients – because clients seek them for their expertise.

So, decide what area you want to live. And then do your homework to find out which Realtors® really know those neighborhoods. Interview them. Meet their team, because you’ll be working with them through this process, too. Ask questions and then listen to their answers. Your instincts will take you far in finding the right agent. The right Realtor® will be active in finding properties for you to consider, and help make the entire experience as seamless for you as possible.

Like we said in the beginning, buying your first home is no small decision. Plus, it’s the first of many, many decisions you’ll be making – especially in finding the home you love and getting a mortgage loan. Make it easy on yourself by putting a little effort into finding the best people for the job. Then – you just let them do their job, and you’ll have much smoother sailing.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, 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 provide just the service you’re looking for. 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, and Kathy Paterniti are all here to help!

Been out looking at homes lately? Thinking that it might be time for you to make the leap? Stop renting, set down some roots, and grow your family? Those are all great ideas, if you ask us. (First, because we hate to see people waste money on rent when they can invest in themselves. Second – because we think Las Vegas is awesome. And third, because we love kids and animals. But, we digress.)

As we mentioned in our last post, going into the home-buying process with a good Credit Score is truly important. Why? Because as we explained, it will help you get a better interest rate, allow you to pay fewer fees, and it will give you more loan options.

Of course, it’s easy for us to say that – but credit can be a complicated thing. (That’s probably why there are books, magazines, websites, and experts out there that make that make explaining how credit works their sole purpose in life.)

There are, however, some basics to keep in mind when you’re trying to improve your own credit history that apply to everyone across the board. So we’re going to try to take a little bit of the “mystery” out of credit! Maybe then you can have a better idea of how to evaluate your own. Then you can make decisions that will help increase your “borrow-ability” (hey look! a new word!) when it’s time for you to make an offer on that house you absolutely love – then apply for your mortgage loan, confident it will make your dream of homeownership come true. Ready?

Not Paying as Agreed. (35% of Credit Score) The first red flag for a lender will focus on any late payments, charged-off accounts, bankruptcies, liens, judgment and other derogatory items on your Credit Report. However, since life isn’t necessarily black-and-white, there may be extenuating circumstances that caused these things to show up on your Credit Report. (An all-too-common and unfortunate one can be identity theft. Another may be an illness with extensive medical bills, or perhaps the millions of people adversely affected by the economic crisis.) Many people aren’t aware that mortgage lenders will consider some of these circumstances when evaluating your loan application. So remember that just because those things are on your report, if there’s a good reason and explanation for them, you may still be able to qualify for a loan.

Poor Credit Management. (30% of Credit Score) Are your credit cards maxed-out to their limit? That’s going to have a big effect on your Credit Score. It’s not that just owing money on your credit accounts makes you a higher credit risk, though. What lowers your score is having high balances, and having balances on several accounts. It’s a sign you may have spread yourself too thin. Start working toward paying those balances down, pay off the ones you can, and before long – you’ll see that score begin to rise.

The Length of Your Credit History. (15% of Credit Score) There’s no hard and fast rule for how long a credit history is required to get a mortgage loan. But as a guide, keep in mind that lenders like to see several months of a good payment history. If you have zero credit history as you read this, then now is the time to start building one. Here are some tips on how to get that ball rolling.

The Type of Credit You Have. (10% of Credit Score) One thing that can help improve your Credit Score is having a variety of credit types on your report. These can be credit cards, store cards and installment loans or credit. So, for example, an auto loan and a few credit cards would be a better credit mix than having only credit cards on your report. Just remember that while having a mix of credit can help, you shouldn’t take out any credit you won’t use. Because…..

New Credit. (10% of Credit Score) Opening multiple new lines of credit too quickly can create a drop in your credit score. (So that part about not taking out credit you don’t need – this is why.) The exception to this is if you’re shopping around for the best credit or loan terms. Multiple credit inquiries over a short period of time will be grouped together as one inquiry – so they won’t “ding” your credit each time one comes through.

Two other things to keep in mind when it comes to your credit – that can both have a tremendous impact on your creditworthiness – are these:

• Errors on your Credit Report. It’s estimated that 1 in 5 Americans have at least one error on their credit report. That’s a huge number – so it bears saying you should review yours with a fine-tooth comb to see if yours is one of them. The good news is that today, it’s possible to submit a dispute for incorrect information online directly to the credit agency reporting the mistake. Although as this creditcards.com blog explains, sometimes better results are achieved through the USPS regular mail.
• Are You Buying Your Home with a Spouse? Remember that both of your credit histories will play a role in your mortgage loan application. That means – don’t review only your own report – get your partner to review theirs, too!

Now you’ve got your homework assignment. It’s time to dig in and take the steps to raise your credit score as high as possible! That one number will help you save money in more places than you can imagine – and not only on your mortgage loan rates.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, 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 provide just the service you’re looking for. 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, and Kathy Paterniti are all here to help!

Unless you’re one of the lucky ones who hit that lottery jackpot or your MegaBucks dreams have come true, the odds are when the time comes that you want to buy a home, you’re going to need to get a mortgage loan to do it. (By the way, when it gets to that point, the most important rule to know is this: SHOP AROUND FOR THE BEST LOAN! Our friends at Premier Mortgage Lending help explain exactly why in this article.)

While it’s true that your Credit Score is only one element (of many) that a mortgage lender considers (in addition to your income, expenses, and other items) – it’s one of the most important when it comes to getting a more cost-effective and affordable loan.

And by that, we mean a good Credit Score gives you more options and saves you money when it comes to getting a mortgage.

How? It can play a role in getting you a better interest rate, in qualifying for a loan with a lower down-payment requirement, and can even help you to pay less in loan fees – such as Loan Origination, Underwriting, Document, and more. (Wondering how much can those fees can add up to? Take a look here.)

Mortgage Loan Rules of Thumb:

A Credit Score of 740 and above will get you the best mortgage interest rate.
A Credit Score between 620-739 may add from .25% to 1% or even more to your interest rate.
A Credit Score lower than 620 will generally require a significantly larger down payment, additional fees, a higher interest rate, and possibly stricter loan terms.

That’s Why It’s Important to Know What Your Credit Says About You.

If you’re considering making a home purchase in the future, the first thing you should do is check to see what information shows up on your Credit Report – and to find out your Credit Score, too – because those are two completely different things:

• Your Credit Report will show your Credit History – including information such as who has extended credit to you, if you made your payments on-time, how much you have borrowed, and what your total debt obligation is – along with personal information about previous names and addresses associated with your Social Security number.

• Your Credit Score is a numerical value applied to you (between 300 and 850) that is based on an analysis of your credit files. This helps lenders determine how credit-worthy you are, and there are 3 main agencies (although there are many others) who provide them to consumers: TransUnion, Equifax, and Experian.

While everyone is entitled by law to receive a free Credit Report annually (you can get it at www.annualcreditreport.com) – Credit Scores are not free, but are available to purchase.

Potential buyers should be checking their credit score regularly, and at least six to 12 months before applying for a mortgage.

The bottom line is this: The higher your credit score, the more trustworthy you are to borrow, and the less interest you will pay on future loans (and not only mortgage loans, either).

The key to getting a low-interest rate on a mortgage or car loan is having a high credit score and solid credit history of paying off your debt. Start working on your credit today and nurture it for the future. Your reward? Saving money in the Business of Life down the road.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, 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 provide just the service you’re looking for. 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, and Kathy Paterniti are all here to help!

The supply and demand for real estate has been doing some odd things for a while now. The effect of the Great Recession has created a somewhat unusual flow of homes coming onto the market for sale largely based on the actions of large banks intermittently releasing parts of their inventories of foreclosures on their books.

Whether their actions are good or bad for the market isn’t the topic here, though. What we’d like to do is help buyers understand what, exactly, they may be up against as they go shopping for their next home in Southern Nevada. Because one thing we see often is the seller having a choice of which offer they want to accept. And when you have just fallen head-over-heels for a home, it’s scary to think that the final decision of who gets it is completely out of your hands.

Or is it?

While there may be some things that can’t be overcome (for example, when a buyer makes a financial offer much higher than you can afford to pay) – for the most part, people tend to start out on a relatively equal footing. Most people will work with realistic appraisal estimates, most will need to obtain mortgage financing, etc. But there are a few things you can do that might help tip the scales in your favor.

First thing to remember: Sellers are people, too.

Okay, okay – we know that sounds obvious. But what we want to convey is that in being ‘human’ – their opinions and feelings can often be swayed with the smallest of issues; and if all things are equal financially in the multiple offers they received, then what will they base their final decision on?

We like to think that the numerous tips we’re about to give you all fall under one basic umbrella: Respect.

When you have gone out of your way to show a seller respect – for their time, their hospitality, their consideration, and their privacy – those are awfully easy (and free) things you can do in your interactions with that seller to build a bond of sorts that could just get you that purchase contract you’re longing for. Let’s get started, shall we?

Get Your Mortgage Loan Pre-Approved

We tend to harp on this topic in many of our posts – but that’s because it is such an important thing to do for so many reasons. In this particular context – when you’re trying to convince a seller that you are their best choice among many offers – you want to be able to clearly demonstrate these three things:

(a) You can afford to buy this home;

(b) Your financing has already been reviewed and approved by a reputable mortgage lender; and

(c) You are ready, willing, and able to get to closing

Having that ace up your sleeve – especially when many other buyers haven’t taken the same steps already – can easily move your name to the top of that “Consideration” list.

Be On Time

And if you can’t be on time, let everyone know that as quickly as possible.

Acknowledge the fact that selling a home can be a real time-suck. Sellers need to keep things neat, clean, and tidy at all times, rearrange their schedules to meet with Realtors™ and potential buyers, perhaps they’re meeting workmen to get minor repairs done – there’s a lot of work involved for the seller, alone.

So if you’ve made an appointment to view a home, be punctual. Running late? Call ahead and ask if they would prefer to reschedule – and definitely don’t let that happen more than once. Late appointments or no-call/no-shows until after one was scheduled can leave a bad taste in a seller’s mouth – about you. (insert demerit point for that!)

Show Courtesy for Their Home and Space

This is far from being an exhaustive list, since every home and seller will have its own special circumstances. But start with these items as your rule of thumb – and remember, it is simply not possible to be TOO courteous. So when in doubt, impress them with your consideration.

• Be respectful of parking. Don’t inconvenience the neighbors, and don’t block the seller’s cars in the driveway. If you need to walk from down the street a few houses, that’s a small price to pay to avoid making a poorly-timed bad impression.

• Remove your shoes. This may not make a difference to all sellers – but it may make a huge difference to YOUR seller. Stay on the safe side. In many cultures, it is a huge faux pas to wear shoes inside at all. It’s a whole lot easier just to not risk it at all.

• Don’t overwhelm them with a huge group of people to view their home. Try to minimize to just the heads of the household – at least for the initial visit. Forego the parents and best friends accompanying you; and on the first visit, it’s wise to skip bringing the kids. There is a liability that the seller assumes having people in their home – and think about it from their point of view. It’s uncomfortable to have people wander off from the group and then having to wonder/worry what someone is doing in the bedroom when you’re all in the kitchen, etc. If you decide this is the home for you – schedule a time to bring the rest of the household with you to view it at a later date.

• Don’t take photos without asking permission. Especially in this day and age – with the potential for an image to go literally from non-existent to a media sensation in mere moments. Many people go to great lengths to protect their privacy specifically from this possibility. If you’d like some images to help you plan and remember specific things – ask the owner if they would mind if you take a photo, and frame the image it in a way that they will be comfortable with.

Certainly there are many other thoughtful considerations you can put into play during your interactions with a seller – but remember this: You don’t know until you see a home if it may be “The One” that you simply must own. That means you want to practice these particular etiquettes – and perhaps others that your Realtor™ will recommend – with every home you visit in your search. Do that, and you’re going to be miles ahead of your potential competition to be the new owner!

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!

When you work in the real estate industry, it’s easy to get so used to the “lingo” that you forget sometimes the words and terms you’re using aren’t necessarily mainstream knowledge.

That got us thinking that it’s worth taking the time to explain a few of the most common real estate terms that we industry professionals just fling around carelessly – assuming everyone knows what we’re talking about. And since there are about a gajillion different phrases used in any given real estate transaction, we’d like to help explain one of the most common – but perhaps least understood – real estate terms that will affect virtually all buyers – namely: Title Insurance Policies.

A standard inclusion in pretty much any real estate purchase or sale, it’s one of those things that any REALTOR™ will just take for granted needs no explanation. Surely everyone knows what it is, right? (What? You mean you didn’t read the latest Nevada Revised Real Estate Statutes and Regulations when you were on vacation?)

Wrong. In fact, we have friends who have bought and sold many different homes through the years who finally ‘fessed up around their 5th escrow transaction that they had no idea what that charge is on their closing documents for “Title Insurance Policy Premium.”

So let’s start out with the simplest explanation:

The primary purpose of Title Insurance is to eliminate risks and prevent losses caused by defects in title arising out of events that have happened in the past.

Oh gee. Now that we see it in writing, that doesn’t really help much, does it? Okay – then let’s break it down further with a few Q&As.

What is it?

• Title insurance is a policy that protects you from unanticipated claims that could cause you to lose your home.

• It’s protection against historical mistakes and fraud committed with respect to your home.

How does it work?

• Unlike other insurance policies (such as life, health, or auto) – which protect against potential future events – a Title Insurance Policy insures against events that occurred in the property’s past.

Why is Title Insurance important?

• Mistakes happen. While your seller is obligated to sell you the home with a “clear title” (in other words, no liens, encumbrances, or claims that you didn’t agree to) – they may not always disclose title defects they know of; or even be aware of things that occurred prior to their purchase of the home.

• Imagine one scenario: You have to leave your home because county records show that the seller who sold you the home never really owned it. (It happens!)

• Or, the seller had work done on the home previously, but failed to pay the workers in full. The workers or subcontractor may have filed a lien against the property, and if it’s not paid – you could be the one held financially responsible to pay the liens in order to eliminate them from the title to your property.

• Title insurance protects against situations like this. When a claim is made, your title insurer will research the claim on your behalf and, if necessary, will make you whole for any loss incurred (which may even include paying your remaining mortgage balance in full, as well as related expenses.)

Who issues the Title Insurance Policy?

• Your escrow officer (or lender) will open an order, and the title agent will begin a title search.

• During escrow, a Preliminary Title Report is issued to the customer for review and approval.

• After closing and recording of all the purchase and loan documents, the escrow officer will disburse funds to pay the title company for the policy.

• Then the policy is created and issued to the owner or lender (depending on which policy is purchased).

What does it cost?

• It is a one-time premium paid at the close of escrow. The cost will differ based on the sales price of the home and/or the rates of the title company issuing the policy. (Estimate between .4%-.75% of your loan amount.)

How is it paid?

• It will show up on your escrow closing statement as an “Owner’s (or Lender’s) Title Insurance.”

Who should buy Title Insurance?

• In our opinion – everyone.

• There are two types of policies: Owner’s Title Insurance and Lender’s Title Insurance.

• It is optional for Owners.

• But nearly every mortgage lender will require that a borrower purchase a Lender’s Title Insurance policy.

Whew! That’s quite a bit of information! And to think, before we wrote this all down we just expected our clients to know (apparently by osmosis!) all that the phrase “Title Insurance” entailed. But hopefully, this helps to make it a little bit easier to understand in any future real estate purchase you make. (And if you have any other questions about this topic, feel free to contact us and we’ll help to clear them up.)

The bottom line is this: Yes, you want to purchase Title Insurance on your home. Considering the relatively minor cost – in relation to your overall financial investment in buying a home – it is money well spent. You may never need it, but if you do – you’ll be awfully, awfully glad it’s there.

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!

Made the decision to go find yourself another home, did ya? Wow. Now THAT’S exciting! Congratulations!

As we all know by now, buying a home is a pretty emotional experience. You’re excited, you’re amped up, you’re viewing listing photos via online sites several times a day, and you’re rarin’ to get out there and find the one that’s just perfect for you. Yep – that’s how it’s supposed to be.

Knowing what to do when you start home-shopping is important . . . in fact, it’s almost as important as knowing what NOT to do. The job of an experienced REALTOR® is to guide you down the right path for both of those fronts. But we figured it wouldn’t hurt to give you a little ‘heads-up’ about some of the larger pitfalls you’ll really want to avoid in the process. So read on, dear house hunter!

Not Letting Your REALTOR® Do Their Job

Funny thing – sometimes people complain about having to pay a REALTOR® at all – and then they fail to actually let them do the job they were hired for. We know part of that is the excitement and enthusiasm that comes with searching for a home, but it’s easy for buyers to jump the gun about certain things – which might ultimately end up costing them money, or even to have regrets about “the one that got away.” So – let your REALTOR® do their job. If you drive by an interesting property they haven’t mentioned to you, call them with the property address and phone number from the sign, and let them research the asking price and property details. (You’ll probably discover that 9 times out of 10, they didn’t mention it because it doesn’t meet your search criteria.)

Decide What You’re Looking For In Your New Home

This actually covers a range of topics, and it will be wildly different for every family. Do you have kids? Then the schools will be an important issue. How many bedrooms and bathrooms; what square footage; 3-car garage; a big back yard to play in, or a low-maintenance patio home; one- or two-stories; a specific neighborhood; close to your work; a multi-generational suite; a gourmet kitchen; new; used . . . as you can see, the list can go on and on. Your REALTOR® will help you nail down the specifics based on your needs and your budget. And then they’ll get to work on your behalf.

Stay In Your Budget

As critical as knowing what you’re looking for in a home (or perhaps even more critical) – is determining what your budget is. It’s not simply a matter of “How much of a mortgage loan can I get?” – because often, people will be able to qualify for a larger loan than they may truly be comfortable with. That’s not to say the lender is over-selling you – what it means is that you may have the income, but want to apply it to other priorities – and perhaps not all of it to your home mortgage payment. If you’re planning to start a business, have more children, saving for college tuition – these are all reasons (and many more) to take into consideration when deciding how much of a loan to get. And that – combined with your down payment needs – will help you determine the price range of the home you should be searching for. Few things are worse than shopping outside that range, falling madly in love with a home, and making the (incredibly long-term) decision to overextend yourself, or have to give up on your future plans because of an impulsive past decision. Just avoid that problem entirely – and stick with your planned budget.

Get Pre-Approved For Your Mortgage Loan

The old-school mindset used to be: Shop for home, Find home, Make offer, Get mortgage loan. Yeah – not so much anymore. There’s a new first step that any reputable REALTOR® is going to strongly recommend – or in fact, may even require before they’ll begin working with you: Getting pre-approval for a mortgage loan. And there’s a very good reason for that – in fact, more than one.

First, you don’t want to be wasting your time, going out and looking at homes that you can’t buy. It’s frustrating (and potentially heartbreaking) for you, and trust us – your REALTOR® certainly doesn’t have extra time lying around to waste, either. Getting a pre-approval for your loan removes the “wish” factor and gives you more confidence to shop wisely for the home of your dreams.

Second, while the market is always changing – it’s not all that uncommon any more for a seller to get multiple offers to buy their home. So put yourself in their shoes: You’re the seller, and you’re looking at offers from three different buyers. All things being equal (assuming they all offered the same price and the same general terms) – you’re going to be far more interested in choosing the buyers who have their loan pre-approval letter in hand, which proves they have the financial wherewithal to actually close escrow successfully. And since you were smart enough to get that pre-approval – you’ve got a good chance of beating those other two buyers to become the new owner.

Choosing The Right Lender

Let us just say this: All mortgage lenders are not the same. Actually, it wasn’t all that long ago that they were all more alike in how they made, processed, and charged borrowers for their mortgage loan. But those days are gone. (A little thing called The Great Recession made that necessary.) Now, many home buyers don’t realize that simply by not doing their due diligence – and shopping their loan around to multiple lenders – they can end up paying thousands of dollars more for their loan than they should. You read that right: Thousands.

Why? Because different regulations apply to different types of lenders. Mortgage Brokers (like Las Vegas’ locally-owned Premier Mortgage Lending) are regulated in how much they can charge for a mortgage loan – and they must fully disclose all charges to the borrower. Banks and Mortgage Bankers do not have the same restrictions; they can earn more from the borrower and not even have to disclose that information (so basically, they’re spending your money without even telling you about it). And you know what else? That extra few thousand dollars you’ll save by shopping around is money that can help you qualify for a larger loan, a different home, buy new furniture, or just put in your pocket. (Which all sounds a lot more fun to us than just handing it over to a bank – but that could just be us. ;-))

Actually, those five steps are just the beginning – because there are many other house hunting pitfalls that buyers can easily avoid, as long as they’re aware of them. We’ll help out with some more of those in a future post. But for now – remember these as you set out on your home-buying adventure, and you’re more likely to get the perfect home at the perfect price! Woo-hoo!

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!

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.

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!

Are we all tired of hearing yet that “It’s a New Year! Time to Keep Resolutions! Set Goals! Make Changes!” Yeah, we are, too. So in the interests of ‘moving-right-along,’ we’d like to touch on a subject that seems to make all the “What to do in 2016” lists a lot, but in reality requires diligence to keep in line. Day in and day out, year after year after year.

Yes – we’re talking about your credit score.

The reason we bring it up is because “in the old days” (i.e., sort of before the internet) – your credit used to work like this:

• You pay your bills on time.

• You develop a good credit score.

• You can get a loan or line of credit when you need one.

These days, not so much. There are more things that can actually affect your credit score – both good and bad – than ever before. In fact, there are a lot of things that you probably feel shouldn’t rely on your credit score – but they can still end up costing you money (from higher credit card and mortgage loan charges to auto insurance and more).

The fact is, the state of your credit history can have a huge affect on the things you’re able to do in life. From job opportunities to owning a home. So we’d like to point out a few things you may not know about what does – and doesn’t – make a difference to your credit score.

Whaaaaat?!!! (aka “These Things Matter To My Credit?”)

Renting a car with a debit card can affect your credit. How? Some car rental agencies might see it as a red flag that you aren’t using a credit card, so they’re going to check and see if you can be trusted. It’ll count as a hard inquiry and could cost a few points on your score

Not paying a parking ticket. You might think you pulled a fast one on the local municipality by not paying a parking ticket, but they might have the last laugh. Some cities send your unpaid tickets to collections agencies, and your credit score can take a beating if you have an account in collections. So, while you might think you saved $65 on a parking ticket, you could be paying hundreds of dollars more on a new loan because you might not get favorable terms based on the decrease in your credit score. The same for utility bills, back rent and other expenses.

Getting a New Cell Phone. Opening a new mobile account could also initiate a hard credit inquiry. Although each hard inquiry shouldn’t drop your score too drastically, you’ll want to be careful not to initiate too many in too short a time, or else these little actions can really add up.

Things You Think Should Matter – But Don’t

How much money you make. Now seriously, of anything that affects your financial status, what could possible matter more? And yet, nowhere on your credit report is your income reflected. That’s not to say that anyone you’ve asked to extend you credit won’t make that inquiry, or that the results of a high or low income may ultimately show up in other ways on your report. But as far as your credit history alone – it makes no difference.

Your Debit Card History. For those who were raised with the theory “If you can’t pay cash, don’t get it” – they’re probably more quick to pull out the debit card than the credit card at the purchase counter. But in doing so – you’re using cash you already have (another thing that doesn’t show up on your credit report: Your net worth or cash in the bank). So it’s not demonstrating your ability to utilize and responsibly manage credit. In fact, many people have zero information on their credit history because they chose not to borrow money or pay for things with credit. So literally, by staying out of debt – you’re working against your own credit score.

Spent time in prison? Your credit history won’t show it. However, while it’s true your criminal record is typically ignored, civil judgments can and do appear on your credit report. This includes everything from bankruptcies and tax liens to monetary judgments and overdue child support payments in some states.

The Things That Really Do Matter To Your Credit Score

1. The best thing you can do is pay your bills on-time. 35% of your credit score is your payment history.

2. If you can’t pay them on-time, make sure you pay something each month. Completely ignoring your bills is much worse than paying late. And having an account charged off gives potential lenders historic proof that a company lent you money and you didn’t pay it back, (Need we point out that’s not a good thing?)

3. Help your score by keeping your credit card balances low in relation to your credit limit.

4. Avoid tax liens, bankruptcies and foreclosures.

If buying a home is on your list of things to do anytime soon – or even in the distant future – it is literally never too early to start focusing on building your credit history and credit score. For more tips on what you can do to help improve your ability to get a mortgage loan, take a look at this blog post from Premier Mortgage Lending. (Seven Things To Do To Improve Your Credit Score.)

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!

If you’ve ever sold your home or an investment property before, at some point you’ve probably asked yourself: “Why shouldn’t I just sell it myself and save the commission?” That’s a great question. And although we touched on this topic in our last article, we thought it might be a good idea to delve a little further into the details.

In fact, we’re going to champion that idea for you and help you prepare for the task! So grab your pencils and highlighters, because we’re about to give you a Crash Course in For Sale By Owner techniques.

1) Remember, anyone – including you – can sell your home. All you have to do is underprice it. That’s been proven by studies showing that “for sale by owner” properties lose between 14%-20% on the price they could have gotten by using an agent. (So saving that 3% Selling Agent commission will come in handy.)

2) Great news! You get to keep your schedule wide open! At least, that’s if you want to make sure you don’t miss any prospective buyers. Because without an agent, you need to be on-call 7 days a week to show your property. If you’re not, of course, that means fewer offers and even less possibility of receiving a full-priced offer. (Then again, you might want to put a value on your time as you’ll be losing income for taking off work.)

3) That also includes taking time to market your property – whether with flyers, or online ads, or signage, or any other non-MLS methods you can think of. You’ll be paying for the cost of all this marketing, along with putting in hours of your time to let the public know your home is available for sale. Of course, without the instant and mass exposure of an MLS listing, you won’t have as many places to market your property as a real estate professional. That will mean less showings, fewer offers, and a lower sales price.

4) Tell yourself: “I can always list it later if it doesn’t sell.” If you first attempt a “for sale by owner” without success – and later decide to list with an agent – you may have already eliminated many potential buyers who saw or knew of your home in the first place. One of the reasons is this: In real estate, the first week your home is on the market is considered its “Golden Time.” That’s typically when you will get the most interest and the most money for your home. And the longer it’s on the market, the less money people are willing to offer.

5) Put on your “negotiating” hat. Because you’ll be the one to field all the phone calls, emails, and inquiries that come in about your property – and you’ll need to know the right things to say – such as how to ask pre-qualifying questions to determine if a buyer is financially able to buy your home. (No sense taking the time to show it if they aren’t.) That’s all before you find a buyer, of course. Once an offer comes in, keep in mind all it takes is one missed call to potentially kill a deal. But if you do get a contract – then you’ll need to make sure to meet with the appraiser and home inspectors, too – so be sure to schedule your time accordingly. (Oh, and know that “More than one in three appraisals contain inconsistent property ratings.” So you need to brush up on how appraisals are done, too.)

6) Put your attorney on stand-by. Because the odds are you probably don’t understand the contract process well enough to avoid legal problems, or how to explain to a buyers’ agent how you want things drawn up. You’ll also need to have the right forms and real estate disclosures on-hand to comply with the real estate laws in your state. Without an attorney (and they’re cheap, right?) – you won’t have any protection between you and potential buyers. And by the way, with the new TRID regulations that have recently gone into effect, buyers have even more protections than ever before.

7) You may still need to pay a Buyer’s agent commission. Most serious buyers are already working with an agent, so some of those phone calls will be to see if you will “cooperate” with them. If you don’t, they won’t even bother to show your home to their client. If you do, you’ll be paying them the standard commission at closing (generally 3%). That means you’re putting in all your time and money into saving only half of the full commission (3%). You might want to make sure that pencils out.

8) Be prepared to do it all more than once. Not every real estate transaction gets through to the end, for many reasons. Some can be avoided (with the help of an experienced professional), and some can’t – but estimates of real estate sales that fall through range from 10-20%. If yours is among them, you’ll need to take the time, effort, and money to start over again (more marketing, calls, showings, inspections, paperwork, contracts, fees, etc.). Of course, you’ve lost your “Golden Time” opportunity – so it will probably take longer, and you’ll get fewer and lower offers – but you’ll never be bored!

Okay, we do have to admit to a little bit of tongue-in-cheek with the foregoing information – but the point is, all of it is true. And while some sellers may be up to the task, potential FSBO sellers should be aware of these facts:

• Only half of home sellers who try “for sale by owner” actually sell their home on their own.

• In 2013, the typical FSBO home sold for $184,000 compared to $230,000 for agent-assisted home sales. (That’s a difference of 20%.)

• FSBO sellers list the following difficulties with selling on their own:

o Understanding and performing paperwork

o Getting the price right

o Preparing/fixing up home for sale

o Helping buyer obtain financing

o Attracting potential buyers

o Selling within the planned length of time

o Having enough time to devote to all aspects of the sale

All of that is contrasted with these most recent statistics:

• 88% of sellers were assisted by a real estate agent when selling their home.

• Recent sellers typically sold their homes for 97% of the listing price.

• The typical home sold was on the market for 5 weeks.

Perhaps the biggest mistake made by most FSBO sellers is this: Placing too little value on their own time. In truth, working with a professional real estate agent will more often than not net you better results.

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!

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.

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!