Although Las Vegas is known as “The Entertainment Capital of the World,” it’s also home to increasing numbers of residents. With a strong economy, low sales and property taxes, and a relatively low cost of living, it has become attractive to many people looking to get to know the place on a more permanent basis. Here are some things to know about how to buy a home in Las Vegas.
Finding a Local Expert
When it comes to finding a new home, you really shouldn’t go it alone. Work with a real estate agent who will represent your best interests at every step of the homebuying process. When you’re considering house hunting in Las Vegas, you need an agent who is an expert on all things Vegas, especially the housing market and which areas are the best places to buy. This person will have access to tools to help you find properties that best match up with your needs and wants. An agent will also be able to spot potential pitfalls and serve as your best resource for understanding how to buy a home in Las Vegas.
Getting Your Credit Together
Unless you’re buying a home with cash, you’ll probably need to finance the purchase of a house through a mortgage loan. Before you start this process, you should know where you stand with regards to your credit score. This three-digit number gives insight to lenders on your track record when it comes to managing debt and repaying money you’ve borrowed. While various lenders have specific criteria for offering mortgages, the following is a basic guide for credit ratings:
- Exceptional: 800 and above (850 is generally the max)
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
When you’re ready to buy a home in Las Vegas, it’s important that you have a good or better credit score so that you have access to better mortgage amounts, interest rates and repayment terms.
Determining How Much Home You Can Afford
Before you fall in love with a place, you need to know how much house you can buy. First, you need to know how much you can borrow. You can do this by getting pre-qualified for a mortgage, an important part of understanding how to buy a home in Las Vegas. You can show a prequalification letter to sellers to let them know that you’re serious about making an offer.
You also need to look at your monthly income and expenses and figure out how much you can really afford to spend. Keep in mind that the cost of a home includes the mortgage principal and interest, property taxes and insurance as well as utility costs, homeowners association fees and other expenses.
Buying a house requires serious consideration and preparation. You should consult licensed realtors who know how to buy a home in Las Vegas. They will look out for your best interests and help you find the right place.