Originally Posted by jhat01
The wife and I plan on purchasing our first home when we move back to Vegas. I was just wondering if any of you had any advice you can give. I am thinking new, she is thinking existing. I don't know. This is obviously a major purchase, and I really haven't started researching anything yet.
Some good suggestions on here. Jhat I am a licensed realtor here in Colorado who has helped a ton of first time home buyers through the process. First thing I suggest to all my clients and not sure if you have done this as of yet but GET YOUR FINANCING IN ORDER!!!!!
So many pitfalls can arise during the pre-qualification phase in buying a home. It may take you time to clear up credit issues to get the best rate possible. Often there are dings on credit reports that don't even belong to the borrower. These things take time to clear up.
I see this mistake all the time. People get excited about a house and don't even know what they qualify for. Or they wait until they are ready to purchase only to lose the home to a qualified buyer who has complete the loan process.
Any agent can show you a home. A good agent will help you thru this process and can save you thousands of upfront costs and tens of thousands in interest over the long run. Whether you are purchasing new construction or re-sell you should start with the $$$$.
You asked about closing costs. Typically you can count on needing 2.25% of the purchase price of the home to be your closing costs just for the loan itself. It may be slightly or higher or lower in Vegas I can't say for sure.
Some lenders charge 1% origination fee. That is 1 % of your total loan amount in fees!!!!!! Borrower 150k and wammo you are out 1,500 bucks before you even get going. That fee can be avoided.
There are O down programs but the reality of it is you pay for it in the long run depending on how long you own your home. It's a good way to get into a home especially in an appreciating market like Vegas. It's almost safe to assume that no matter what you buy in Vegas as long as you don't overpay for that home upfront you will make money. Period.
However rule of them is you need 3% down. This is for an FHA loan which basically is one of the better programs out there for first time buyers. You will pay a slightly higher interest rate but not much.
Going 20% down has the advantages of not having MIP (Mortgage Insurance Premium) plus you will get the best interest rate from a bank. The MIP is a fee that is charged by the banks when you have less than a 20% equity position in your home.
I don't want to confuse you. To make a long story short you can count on needing about 5% down to bring to the closing table although it can be done with much less. I've help people buy a home that only had $1,000 bucks and they even got it back at closing. That is a true Zero Down deal which isn't always the case. There is too much advertising that overuses the term Zero Down.
People make such a big deal about buying the right home. The reality of it is buying any home especially for a first time home buyer with rates as low as they are is a solid choice.
I'm closing on a home this week for myself. Interest rate is 4.02%. With rates like this out there it is insane not to take advantage of it.
The home buying process is fun and shouldn't be thought of as a stressful process as long as you are working with experienced Agent.
Although you are moving to Vegas I would be happy to talk to you over the phone or via pm is you have other questions you need answered.