Mortgage

Buying a home is an exciting time. Even more exciting if it’s your first home (holy moly, that is such a thrill!).

If you find yourself lucky enough to be a first-time-buyer, you may have heard a lot of stories about how the process works, what you need financially, and a lot of other advice from friends and family. But times change, and some of the things that were true in the past about buying a home aren’t necessarily true anymore.

So just in case you might have come misconceptions about what happens when buying a home – whether it’s your first home or your seventh home – we’d like to provide a few updates about how the process works these days.

A few ways some things have changed:

Do you need 20% down to get a mortgage loan?

It’s not uncommon for buyers to think this is the norm – because it was for so long. However, there are many new programs and opportunities available to homebuyers who have gone through financial hardships during the past few years, who may not have 20% of the purchase price available, and whose credit may have been dinged by the Great Recession.

These days, the FHA will back a loan from a home buyer with a credit score as little as 500 and a 10% down payment. If your credit score is higher than 580, some lenders can help you with only 3.5% for a down payment! It’s certainly easier to be able to afford buying a home today than many people think. Your best bet? Meet with a mortgage lender for advice – even if you’re just curious about whether or not you can get into your own home, or if not now – what can you do to make it a possibility in the near future? Our recommendation – a local mortgage broker is your best bet – one like Premier Mortgage Lending. Not only will you be supporting a small, local business – but because they ARE local, they know the area and the industry, which can serve you quite well in achieving a smooth and untroublesome transaction.

Can you can save money by not using a real estate agent?

For Buyers – it simply makes no sense not to use an experienced REALTOR® or real estate agent. Yes, they receive a 3% commission. But remember this: The Buyer is not the one that pays that fee – that falls to the Seller. In fact, with the help of your own REALTOR®, you’ll have someone who is able to help you negotiate a better purchase price because of the wealth of knowledge they may possess about that property. They will also take care of all the paperwork, appraisals, inspections, and other matters that are part of the process. Today, there’s no doubt that you need their expertise to guide you through this life-changing transaction.

Is it cheaper to buy a home that needs a lot of renovating?

We’ve all seen the TV shows where people buy a fixer-upper and turn it into their dream home. And thanks to the cameras and bright lights, they make it all seem so easy. But in the end, all of these repairs take time and money. And usually the case is that people end up getting tired of all the renovations and don’t end up loving their new home. Remember then, if you need to tear down the walls to make a home look good – and you lead a busy life like most of us – perhaps unsettling your life for a longer period of time to make major renovations isn’t for you.

If you’re ready to buy your first home, let the professionals at New Home Resource help you make it a reality. We know the Las Vegas valley like the back of our hand – and we’ll be happy to answer any questions about the process and make sure you have the right information going into it.

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 the service you’re looking for. Please contact a New Home Resource Realtor® today at 702-365-1000 or visit www.newhomeresource.com. Broker Joanna Piette, and agents Denise Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Kathy Paterniti and Heidi Colón are all here to help!

When it’s time to sit down and figure out how you’re going to finance the home you really want to buy, it’s also a good time to remember a very important real estate rule of thumb: Just because a mortgage lender has a household name doesn’t mean they’re going to be the best choice for your mortgage loan. There’s a way they got to be a household name, after all – by advertising. And who do you think ultimately pays the cost for that? Yep. Their customers – through the higher rates and fees they charge to cover that expense.

(Of course, some mortgage lenders became household names by doing some not-very-savory transactions with their customers, too. But unfortunately, it’s also true that people often remember the name better than the deed . . . so, yeah, there is that.)

And, if you’re of the opinion that those “discount” mortgage financing options you see online are saving you money because they don’t have the ‘brick and mortar’ costs associated with traditional mortgage lenders, you’ll want to think again. The largest online mortgage lender has over 8,000 employees manning phones and populating cubicles in office buildings, all getting loans closed. (They have to – because that’s a lot of brick-and-mortar to pay for!)

So if you’re in the market to get the best deal on a mortgage loan for your needs – it’s a good idea to maybe gather some information (like a Loan Estimate) from the ‘great and powerful wizards’ – but then we recommend you go do some exploring on your own for the ‘little man behind the curtain.’ Because more often than not, it’s going to be the small, local mortgage lender who is going to be working harder on your behalf to give you the best service and save you money on your loan.

Knowing the difference between mortgage lenders and how they work – as well as how they earn their fees – is a critical part of making the right choice, too. There are different regulations that govern banks and mortgage banks, vs. mortgage brokers.

Here in Las Vegas, one locally owned mortgage broker is helping to unravel the ‘mystery’ behind mortgage loans with a series of informational videos that make it simple to understand. Premier Mortgage doesn’t expect borrowers to be experts about mortgage loans, that’s their job. But they do make an effort to help people understand how important it is to shop for a loan with more than one mortgage lender – and what exactly to look for when comparing the numbers, so they can make the best choice themselves. (How to Discover What You Don’t Know About Getting a Mortgage.)

One other important thing to remember about getting a loan: Timing is critical for a borrower’s mortgage transaction. If a loan is delayed due to errors or a Loan Officer’s failure to request and submit proper documentation on time, the buyer may end up paying more money, not have a place to live in the interim, or may even lose the deal completely. And that’s no way to start off the “Happily Ever After” in your new home!

Your Realtor® can be instrumental in helping you make the right mortgage loan choice – and the right Realtor® will recommend that you shop around with several mortgage lenders before making a decision. (Remember, simply filling out an application – or getting a “loan pre-approval” from a lender does not commit you to using them.) Making the wrong choice for a lender can literally cost you thousands of dollars more out of pocket than you need to spend. And wouldn’t that money look better in the new furniture for your new home? We thought so, too!

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 the service you’re looking for. Please contact a New Home Resource Realtor® today at 702-365-1000 or visit www.newhomeresource.com. Broker Joanna Piette, and agents Denise 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!

Buying a house is a big deal and, furthermore, so is applying for a mortgage. When you’re ready to purchase a house you need to get your finances in order to work out just how much you can afford to spend.

1: Be Realistic

Many people over-estimate how much they can afford on a monthly basis. If you earn $3,000 a month then it’s likely that you cannot afford $2,000 in monthly mortgage payments when you factor in the cost of living. Sit down and look at your monthly expenditure. Do you have hobbies that you can’t live without? Do you like to take vacations and weekend breaks away? Do you plan on making a big purchase within the next year? If so factor in the cost of these into your monthly expenditure before deciding on your monthly mortgage payments.

2: Do Your Research

Research different areas and communities, take into consideration the school districts, proximity to work, leisure centers and amenities. Does the area you are looking at have all the amenities you need? If it doesn’t what are you willing to sacrifice? House size or proximity to work? Does the cost of commuting outweigh the lifestyle and vice versa.

3: Shop Around

Finding the right mortgage company is crucial. Don’t just go with the first company you visit, shop around and find out about all the different loans that are applicable to you at each company. Be sure to take note of interest rates and compare them to the current market. Remember you will have a long-term relationship with that company, so make sure you feel completely comfortable and confident that they have your best interests at heart.

4: Consult An Outsider

If you’re ever in doubt talk to someone who is not emotionally involved in buying the house to get an unbiased view. Before setting out to buy a house, it’s a good idea to sit down and write up a list of all the must-haves, bonus features and factors that you’d like in a home. Does the home you’re considering buying meet all of the must-have features? Does the extra bedroom really justify the additional cost? Having the outsider sit down and rationalize with you about the property can help you to see if you’re being rash or rational about the purchase.

5: Sign The Dotted Line

When you’ve finally made the decision to buy a home, have your lawyer or real estate agent go over all the paperwork. This will ensure that all the paperwork is in order, up to date and legal. Once both parties have agreed with the purchase price and the contract, it’s time to sign that dotted line.

If you are looking to purchase a home please contact New Home Resource at 702-365-1000 for a real estate agent to help you find your dream home. Joanna Piette was voted Best Real Estate Agent at the 2013 Best of Silver State Awards.

The Las Vegas housing market is finally on the way up after being labeled the “Foreclosure Capital”.

With rock bottom prices, Las Vegas is seeing an influx of cash buyers as investors are grasping the opportunity for rental properties.

With over 59% of homes sold in February purchased by cash buyers, the market made a new record for Southern Nevada.

How should you play this fast-paced market to ensure the best price?

1. Cash offers are more likely to be accepted by home sellers, due to quick closings and no appraisal valuation issues.
2. Those with financing should not be discouraged, however, overbidding and guaranteeing the seller your offered price (regardless of appraisal) seems to be the way offers from financed buyers are being considered.
3. The answer is not to be the ‘first’ offer, but the ‘best’ offer.
4. Get aligned with a New Home Resource agent who is at the pulse of the market and knows how to get in the game!

To read more from the original article click here.