Tips for Buying a Home in Las Vegas, NV

Buying a home in Las Vegas is a big deal. It will likely be the largest financial transaction of your life. This process can be scary for a first-time homebuyer and even for those going through it for the second, third or even fourth time.

When it’s time to buy a home in Las Vegas, you want to make sure you’re prepared. Here are a few of the best tips you can use when buying a home.

new home buyer infront of sale sign

Start Your Down Payment Saving ASAP

The down payment is the largest obstacle for most going from renting to buying. The more you have, the more buying power you have and if you put 20% of the purchase price down, you can avoid paying private mortgage insurance (PMI).

You have to start saving as soon as possible because even a small down payment is several thousands of dollars. For example, 5% down on a $200,000 home is $10,000. If you put 20% down, you’ll need $40,000.

Check Your Credit Now

Even if you plan to buy a home next year, check your credit now. You should know what your credit score is and how to make it better between now and the time you decide to purchase a home in Las Vegas. Take the time to do your research and make any moves you need to make to ensure your credit is as good as possible when you go into the home buying process.

One huge tip many miss is paying down credit cards. It can actually hurt your credit score if you carry more than 25% of the credit limit on your credit cards. If possible, pay the balance down to less than 25% of your credit limit to ensure you’re credit score isn’t lower than it should be.

Don’t Take Out Any New Financing

When you decide you’re ready to start looking into buying a home in Las Vegas, it’s time to suspend any new credit accounts. Avoid any new credit cards, buying a new car or anything else. When lenders check your credit, it’s a hard inquiry, which will lower your score. It can also become a factor in your debt-to-income ratio, which is one of the deciding factors.

Look into Down Payment Assistance

There are several programs that will help you with your down payment or allow a lower down payment. If you’re a veteran, you will likely have a good option from a veteran home loan. If not, you can look into FHA loans or first-time homebuyer programs that provide down payment assistance. Explore all of your options to ensure you get the best deal possible.

Set Aside More than Just a Down Payment

Buying a home require a down payment, closing costs and other fees along the way. You may be out of pocket for more than just the down payment. Make sure you save more than the amount you plan to put down.

Consider the way you will live in the home after you buy it, too. Many people prefer to update the home with new furnishings, rugs, fixtures, appliances, paint and more.

Get Pre-Approved

Before you start home shopping, you should get pre-approved for a mortgage. Make sure you have a pre-approval letter to help ensure your offer will be accepted. Without a pre-approval, you won’t know what you can afford and the seller may not take you seriously.

Hire the Right Las Vegas Real Estate Agent

A local real estate agent will know the neighborhoods and will also know the market. You want an agent that specializes in the type of home or the type of buyer you are, such as first-time home buyers. In addition, you want an agent that you click with. Make sure they have real estate agent insurance coverage too!

Don’t be afraid to interview multiple agents before you hire the right one for you. Once you have the right agent, everything will become a bit easier as they will be able to advise you throughout the entire process.

Here are some real estate agents in Las Vegas:

Buy Based on Your Budget, not the Pre-Approval

The mortgage company may pre-approve you for a $400K home, but that doesn’t mean you should shop in this price range. If the estimated payment, homeowners insurance, and maintenance you can afford puts you in the $250K range, shop in this range. The payments you will be taking on need to fit your budget, not just what the lender pre-approves you for.

If you need help getting the proper home insurance in Las Vegas, please contact our Las Vegas office at (702) 220-8640 or visit our office in person at Balsiger Insurance, 3481 E Sunset Rd #100, Las Vegas, NV 89120.

Be Ready to Compromise

Home buying in Las Vegas often means you will need to compromise on some things. Letting little things go will help you throughout the process. Remember, you can replace carpet, paint over walls and replace fixtures. You should have a needs and a wants list and stick to the needs list, but compromise on the wants list.

When you’re new to buying a home or it has been a while, make sure you go in prepared. Hire the right agent, get pre-approved, save for the down payment and be prepared to shop for the right home for you.