|
For Buyers: Professional representation, market knowledge and expertise COMPLETELY FREE - AT NO COST TO YOU!
Statistics show that buying a home is one of the most stressful event in one's life. Where do you start? what are the criteria to consider? is it the right asking price? what should you look for when considering a home? how do you understand all the real estate jargon to make sure you are protected? What are your rights? The questions are endless, especially in a quick changing market like Las Vegas. This is where I can help, and it is totally free. How so? Mainly because this cost is covered on the Seller side, be it a new home from the Builder or a resale home. So as Buyers, there is no reason not to use a professional and give you that peace of mind. I will be happy to help you find the right home for you.
Las Vegas - no longer a Seller's market but a Buyer's market
Las Vegas is experiencing a Buyer's market right now. With all the new construction/development throughout the valley, plus approximately 20,000 resale homes in the MLS, this is a drastic change from the previous few years, making it the best time to buy a home. You will find pricing more competitive, with more choices and options for you as a Buyer. Builders are offerinng extra incentives, upgrades, etc.; and Sellers offering contribution to closing cost and what not to make it more attractive for you to purchase their homes. So if you are considering buying a home in Las Vegas, it is the right time to take advantage of this current situation and buy a home now.
Why pre-qualifying for a loan is a must
Once you decided that you are interested in purchasing a home, you should know what your actual financial situation is: your credit score - which will affect your loan rate, the loan amount you can obtain - which helps determine the price range of your prospective home, what you can pay comfortably each month - so you will enjoy your new home without hardship. Plus, getting pre-qualified shows how prepared you are and your seriousness when an offer is placed. In this Buyer's market, most Sellers won't even consider your offer without a pre-qualified loan note to avoid going through the process and having the deal fall through.
Unless you are a loan officer or have in depth knowlege of how mortgage works, the easiest and most efficient way to do this is to consult a lender. You can go to your bank, credit union, or lending institution. Alternatively, if you like, I can refer you to lenders/loan officers to y ou. These are the people with whom I work, know and trust based upon their proven abilities with my other clients. This removes the guesswork for you. This is just a service I offer to my clients if needed, but I am not linked to to your loan in any way, shape nor form.
What you should know and consider before buying a home
Buying a home is the largest purchase most people will ever make. Homeownership has great benefits. Homeownership also comes with certain responsibilities.
Are you ready for homeownership? Look at your current situation and determine if:
- You have a continuing and reliable source of income prior to applying for the loan.
- You have a credit history that shows you're ready for homeownership.
- Your total debt is manageable and you can afford to take on the costs associated with homeownership.
- You have money saved for a down payment and closing costs.
Once you fully understand your current situation, it's important to look at the pros and cons of homeownership to make the best decision for you and your family.
How Much Can You Afford? |
|
If you want to keep things simple, just refer to above and talk to a lender. Here is a general guideline, but again, every situation is different and no two scenarios are the same.
To get a quick idea of what you can afford to spend, multiply your annual gross income (before taxes) by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is just a rough estimate - the actual number will vary based on factors such as your debt and credit history.
Mortgage lenders typically use the housing expense and debt-to-income ratios to more accurately determine how much you can afford to spend on your mortgage.
- Housing Expense Ratio
Mortgage lenders recommend that your monthly mortgage payment should be less than or equal to a quarter of your monthly gross income. This percentage can change based on the type of mortgage you choose and sometimes the area in which you're looking to buy.
- Debt-to-Income Ratio
You need to factor your other debts into determining an affordable monthly mortgage payment. Mortgage lenders look at whether your total debt is larger than 30-40% of your monthly gross income. Remember, debt is not just credit cards and student loans. It can also include alimony, child support, car loans, and housing expenses.
Again, a mortgage lender, a housing counselor, or consumer credit counselor can help you better understand these guidelines. Before you talk to a financial professional, you can organize your financial picture by creating a budget [PDF 76K ]. Don't forget that you also have to save for the down payment, closing costs, inspections costs, moving, and other related expenses.
| |
