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Purchasing a home

Step-By-Step Guide To Purchasing A Home In Las Vegas

Buying a first home requires thought and, above all, planning. By following the proposed steps, you are putting all the chances on your side to make this project a success. If you are planning to buy a home in Las Vegas, then here are the steps that you need to keep in mind.

1. Assess your borrowing capacity

Knowing your borrowing capacity before you start your research is a great way to avoid disappointment, plus it will help you stay on budget. You can take the help of a financial advisor to assess your borrowing capacity.


2. Determine your down payment

This is one of the important steps when purchasing your property. Indeed, this exercise allows you to assess the amounts to accumulate to make your project a reality.

You should try to pay as much down payment as you can. For example, if you can pay a down payment of 20% or more of the value of the desired property, you automatically become eligible for a conventional loan (uninsured). This avoids the costs associated with mortgage loan insurance. However, you can obtain mortgage financing with as little as 3% down and still have an affordable monthly payment. The majority of homes loans do have mortgage insurance on them and are still affordable options.

Note that it is important to assess your needs and your budget before determining the amount of your down payment. Do you anticipate short-term expenses? Do you have savings in case of unforeseen events?


3. Anticipate additional costs

Buying a property does not only involve mortgage payments! Better to anticipate other costs in advance. And since these fees can affect the amount you plan to spend on your down payment, it is important to take them into account in your purchasing process. The following fees are examples:

  • Assessment and inspection fees

  • Transfer duties

  •  Legal fees

  • Sales tax (if applicable)

  •  Municipal and school taxes

  • Moving expenses)

  • Home Insurance

  • Adjustment of property taxes paid in advance by your seller

  • Service connection fees (electricity, cable, etc.)

  • In most cases, if your purchase price in under 400,000, your total closing cost will range between $5,000 to $6,000 on top of your down payment. Properties with a sales price in excess of $400,000 can vary quite a bit, it is best to get a quote based on the actual property for higher-end purchases.


4. Apply for a pre-approved loan

Apply for a pre-approved loan and shop around for your home.

  • Free and without obligation

  • Determines your purchasing power

  • Increase your bargaining power by indicating to the potential seller the seriousness of your approach

  • Used to guarantee an interest rate up to 90 days; which protects you from a possible increase in rates that may occur during the search for your home

  • A counselor travels to meet you at a time and place that suits you


5. Find your property in Las Vegas

Ask yourself a few questions before establishing your search criteria.

  • Are you a city, suburb, or country type?

  • New or existing house?

  • What type of property is best for you (house, condo, duplex, etc.)?

  • Do you want to have your house built?

  • Things to watch out for when visiting a home


6. Make your purchase

The offer to purchase constitutes a legal document, which irrevocably commits you to comply with all the conditions appearing therein. It is therefore important to prepare the offer carefully and a qualified real estate broker can assist you in this process. In general, the following details must be entered:

  • Purchase price of the house

  • Real estate or items included or excluded in the purchase price (e.g. awning, appliances, pool, household tools, etc.)

  • Conditions relating to the offer to purchase (inspection, etc.)

  • Financial details

  • Date of taking possession

  • Request for a recent certificate of the location of the property

  • Offer expiration date and time

  • It’s important to also consult with your mortgage broker as they do a high volume of loans on a monthly bases, and they work with many Real Estate agents. They get to see which Real Estate agents are true professionals and can make a referral to ensure your housing goals are met.

A real estate agent can help you find an existing home. If you buy a new house, you will have to deal directly with the builder (or with its sellers).


7. Choose your mortgage option

Before you even choose the mortgage that best suits your situation, you should learn more about the general characteristics of this type of loan.


A loan insured or not?

Depending on your initial down payment, you have access to two options: the conventional mortgage loan or the mortgage loan insured by the Federal Government or a private insurer.

You are eligible for the conventional loan if you pay 20% or more of the value of the property. On the other hand, if your down payment is less than 20% of the value of the house, you must opt for an insured mortgage, and the insurance premium that you have to pay can be added to the amount of your loan.


Amortization of 15, 20, 25, or 30 years?

The total repayment of your loan can be spread for up to 30 years for a conventional loan and 25 years for an insured loan. The longer the amortization period chosen, the more your payments are reduced. In return, your interest costs are higher.

You can pay a few dollars per month to have your loan repaid in the event of death, disability, or serious illness. It is very little to have peace of mind! And, to make things easier, the cost of insurance premiums is added to your mortgage payments.


8. Get your mortgage

Here are the main steps to apply for a mortgage. You can get in touch with PIF Lending to get all the details regarding how you can get your mortgage easily.

  • Determining needs through the Personalized Mortgage Plan

  • Filling out your loan application

  • Providing all of the income documentation needed for your loan application

  • Review your closing breakdown that outlines your down payment, closing costa and total out of pocket expenses with your loan officer

  • Executing your purchase agreement

  • Review and sign initial loan disclosures

  • Turn in any other miscellaneous documents requested by PIF Lending processing

  • Receive your conditional underwriting approval

  • Turning in conditions to your PIF Lending loan processor

  • Receive your full loan approval

  • Review and sign your Closing Disclosure that outlines all the numbers at the closing table

  • Schedule your closing with your Real Estate Agent

  • Sign your final closing documents at the title company and wire any required closing funds


9. Get your keys!

That’s it… you are almost at the end of your process. You will get the possession of your house in a few days.

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