A home is the biggest investment people will make in their lifetime. Most people can find an affordable home that they love and want to live in with the right financial tools. However, things don’t always work out at times. Here are the Reasons People Can Not Buy a Home in Reno Nevada. As always, if you would like to know more about buying a house in the Reno Nevada area, contact me today.
Reasons People Can Not Buy a Home in Reno Nevada
Not Getting Pre-Approved
If you want to buy a home in Reno Nevada seriously, take your loan seriously. Don’t get pre-qualified, which is just a ballpark, a lender gives you an unofficial value. Get pre-approved; this means that your credit was checked by the lender, revenue resources and tax returns were examined. They know your financial image and give you the amount you can afford, not fantasy, based on reality.
You may have an offer accepted on a home without pre – approval, but you may not be able to fund the loan because the lender simply did not have all your information in advance. Getting pre-approved will let you know that you are really ready to buy a house in Reno Nevada.
Don’t Have Closing Funds
Many people think of the down payment only when considering out – of-pocket expenses in the process of home purchase. Closing costs are in place and you need the money to pay for them. At closing, everything from lender fees to appraisal and inspections is due. Some costs are included in the loan, but others are not.
On average, you can expect to pay two to five percent of the home value in closing costs. At the beginning of the loan process, talk to your lender and make sure you have enough cash to close. If not, you may be scrambling at the last minute. Forcing you to use retirement funds, getting gift funds, or having to cancel the deal.
Some people are approved for the house of their dreams but they have o purchase something else because they did not save enough money for the down payment. If you plan on buying a house in the near future, you will need to put money away now so you can afford to put the down payment on your dream home.
Too Much Debt
Lender will look at your overall debt-to-income ratio when considering you for a mortgage. You may have nice monthly income, but if every month you have credit card or car payments eating away from it, you’re not in a financially stable position with which lenders are not comfortable with. Monthly debt payments should not be more than 30% of your monthly income on average.
If you have a student loan in some form of forbearance, remember that when the forbearance expires, the lender will use the payment you will incur.
Apply for New Furniture Credit Line
It happens all the time. You are pre – approved and the close of escrow are days away. You anticipate moving in and you have a brand new living room set being delivered to your new house. The only problem is you financed the furniture and you get a credit pull with new debt on your report.
That’s a credit inquiry that can affect your loan and added debt. People have denied loan funding even after being pre-approveddue to last-minute loan inquiries. Wait for escrow to close before you get the furniture as a rule of thumb. It delays things a couple of days but makes sure you don’t change your financial picture’s dynamics.
Shopping for Your Dream Home
You can’t always get what you want. Yes, we’ve all heard the song. This is very true when buying a home. If you are waiting for your brand new dream home with the chef’s kitchen, spa bath and swimming pool, you might be waiting for a long time.
Smart buyers are going to buy what they can afford in a comfortable place to live. They get equity as they increase payments and property values. When selling this first property, this equity can be used as an down payment to buy the bigger and better home in the future. Be the smart buyer and get to your dream home using equity. It is not a bad idea to get a starter home Reno NV.
These are just a few reasons people can not buy a home in Reno Nevada. Yes the housing market is expensive and inventory is a bit low. If you start now and get you priorities straight and start the path on getting organized to buy a house, you will be able to buy the house of your dreams.