There are a few steps you have to take care of before you can buy a house in Reno, Nevada. There is more to it than just finding the right home and submitting an offer. If you want to put yourself in a better position and make the process a lot smoother, you have to take care of a few items first. In this blog we will go over the step necessary so you can own your own house. Here is how you can become a homeowner in Reno, Nevada.
Make A Budget
Start by making a monthly budget that will have all of your expensive, income, debts and obligations. When you’ve put together a estimate, it should help you realize where you are financially. The main goal of creating a budget is to let you know what your estimated monthly payments will be in addition to your mortgage. Take this time to see if you can save money in any particular area. The more you can save the better you will be down the road.
Owning a house can become expensive and there will be additional cost down the road. So you will need to have an emergency fund to take care of any unforeseen issues. This will help lower your stress knowing you will have a good buffer if something does go wrong.
Check Your Credit
A big hurdle that affects most people looking to buy a house in Reno, Nevada is their credit scores. Also know as a FICO. Your score will play a big roll when a mortgage lender decides if you are qualify for a mortgage.
Your credit report will help determine the interest rate your lender will give you and how much you qualify for. The higher your credit score the lower your interest rate and the more you qualify for.
Also talk to a mortgage professional to see where you stand and what score is require for you to get a loan. Most lender will provide a plan for you to achieve a credit score that will allow you to qualify for a mortgage. Even if you have a good credit report, look into seeing if rising your score will improve your loan amount and lower your interested rate so you can save more money over the life of your loan.
This is a key item you should do to become a homeowner in Reno, Nevada.
Find Ways To Save
The initial down payment is the greatest cost you have in being a homeowner. The amount your need to out down can vary. Some lender allow a down payment of 3.5%-20% depending on the applicant and the loan programs available.
The more you save the more you can potentially quality for. As mentioned above, creating a budget will allow you to determine where you can save money. Most people are surprised to see how much they spend on everyday items they can do without. For example a cup of coffee at Starbucks can add up overtime. Another good example is deciding if you can push something back. Like buying a new car or going on a vacation.
Along with saving on everyday items and eating out less, put money aside. Most homeowners will put money aside with every pay check. If you stay disciplined you will be surprised how much money you will save over a course of a year.
Talk To A Real Estate Agent
If you are a first-time home buyer, think about hiring a real estate agent to assist you. Buying a house for the first time can be complicated if you are unfamiliar with the process. When you work with a Real Estate Agent, they will guide you throughout so you are well informed throughout. Giving you help tips along the way.
Real Estate Agents who help people buy a house are called Buyer’s Agents. Look for an agent that has a track record of help people buy a house. Look for reviews, past sales and certifications to see if they are right for you.
Research What Mortgage Rates and Programs Are Available
If you want to become a homeowner you need to do your research. There are different types of loan programs that you can qualify for. Talk to a lender to determine what loan programs you’re eligible for. If you are unsure which lender to contact, let use know. We are a list of lenders we work with that will be happy to help you.
There are some restrictions and qualifications for each loan. Credit score, income, value of the house, conditions of the house, profession and first-time home buyers. Some of these programs are VA loans, USDA loans and FHA loans. Again it is a great idea to talk to a lender to see what qualify for.
Talk to your lender and see what loan terms are best for you. Is a 30, 20 15 year loan best for you? What will be included in the mortgage? What are fees associated in with each loan? Any restrictions? There are pros and cons so research everything.
Get A Pre-Approval
Once you determine your loan, its time to get a pre-approval. This will give you a good idea of what your payments will be. You will also know your buying power by knowing what you can afford. When you submit an offer, you will need to show proof that you can afford the house. Your offer will be taken more seriously and will improve the chances of your offer getting accepted.
A couple thoughts to consider. Reno, Nevada is becoming an expensive place to live as a result, high prices are rises dramatically each year. Also, see what is available in your price range. If you can not find anything in your price range that you like, think about waiting a year or so to save up more money and increase your loan amount.
It doesn’t mean have to stop looking for homes for sale in Reno Nevada right away. You might see something that becomes available while you are waiting. Keep in touch with your Realtor just in case you see something you like. They can also keep you updated on the market.
If you follow these easy steps you will be on the path of becoming a homeowner in no time.
Are you ready to buy a house in the Reno, Nevada area or anywhere in Northern Nevada?
We have helped numerous first time home buyers become owners and we will be glad to help you. Contact use today for a free no obligation consultation to see if you are right for you.