Tag Archives: buyers

Homeownership in Las Vegas is Still Affordable – and Now Even Easier

homeownership in Las Vegas

In a city with so much wide open space, it’s not surprising that Las Vegas evolved “out” instead of “up.” Even though recent years have seen resorts and hotels on the Strip head more in the direction of hi-rises (because there’s only so much Las Vegas Strip real estate) – our city is so unique and diverse that we don’t have the same housing limitations as other places (think San Francisco and New York).

“That’s one of the reasons that homeownership in Las Vegas is still affordable. Jobs aren’t all concentrated in one section of the city, they’re all throughout the valley,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “That makes it possible for people to take advantage of reasonable home prices that can be found in all corners of Las Vegas. And having a place to call your own is still not only highly desirable – it’s doable.”

In fact, it’s even more doable now than it has been recently – with the introduction of Premier’s new 1% Down Loan Program.

As Piette explains, “Right now, there are two huge demographics entering the home buying market: Millennials, with some 61% of prospective home buyers this year under the age of 35; and Baby Boomers – those 55+ who are making significant life changes that include relocating, downsizing, and/or retirement plans.

“For a long time, many assumed that younger generations would bypass homeownership opportunities altogether, but obviously, that’s not the case,” continues Piette. “Why? For the same reasons that applied for previous generations: Marriage, family, space, privacy, financial security.”

“But there has been one hurdle many have had to overcome: Saving up a 10-20% down payment to qualify for a loan. That’s caused many to delay their desire to buy a home for years. However, I’m happy to announce that now – here in Las Vegas – Premier Mortgage has removed that obstacle. Our new 1% Down Loan Program is changing lives and bringing the pride of homeownership to buyers of all generations,” Piette explains. “And perhaps most surprising to many is that this loan really is exactly as it sounds.

“Not only does it require only 1% of the purchase price as a down payment, but that amount can even be a gift – which means there’s no need to document the long-term accumulation of a large down payment in your bank accounts. Plus – and this part is real, even though it sounds hard to believe: The lender contributes an additional 2% down, so when you close escrow you immediately have 3% equity.

“It’s also a 30-year, fixed conventional loan – so there’s no adjusted payments over time,” continues Piette. “Your mortgage payment is a firm amount. And by taking advantage of the current low interest rates – buyers realize they can even afford to buy more home than they might have thought.

“Even better – buyers are finding they can buy and own a home for less money than they would spend on just the rent and deposits needed to lease a home. That’s an eye-opening discovery for most people!”

Learn more today about Premier Mortgage Lending’s 1% Down Loan Program by visiting www.1percentloan.com. You’ll discover more details about the benefits and requirements of this program there – then call us at 702.485.6600 and we’ll help you determine if you quality for this great opportunity.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

What Are The Steps To Getting A Mortgage Loan?

loan_approved

If you’ve ever bought a home before, you already know that getting a mortgage loan doesn’t happen overnight. But if you’re new to the process, you probably don’t know quite what to expect. So consider this article an “extra edition” to our Home Loan 101 educational series, as we walk you through the general steps that take you from “I love this house!” to “I can’t believe I OWN this house!”

Do I Need A Pre-Qualification Letter or a Pre-Approval Letter?

Whether buying a new or resale home, most real estate professionals or home builders will require you to obtain at minimum a Pre-Qualification Letter before signing a purchase agreement (or in some cases, before even taking you to view homes). This is not only common in the industry, but reasonable. After all, what’s the point in viewing homes unless you are reasonably certain you’ll be able to complete the purchase?

A Pre-Qualification is a simple step and does not require documentation or a credit check. By providing the lender with basic information, they will be able to give you a rough, unverified estimate of the loan size you may be qualified to receive. (Most lenders will give you a pre-qualification letter based on your verbal self-reporting of your income, assets, debts, and down payment amount.) One thing to remember: You don’t need to take out a loan from the same lender that gave you your pre-qualification letter.

For a Pre-Approval, lenders must verify everything you’ve told them (with identification documents such as your Social Security card, proof of income, assets, and employment, as well as records of any debts you hold.) Once you’re pre-approved, you’ll receive a conditional letter stating the exact amount of loan for which you’re approved.

• Note: If you have a simple situation – such as stable employment with no debt – this process can be as short as one to two weeks. But if you’re self-employed, own several other houses, have had a previous divorce or bankruptcy, have a pending court case or lawsuit against you, are in the U.S. on a temporary visa, or have other complicating factors, the loan officer may require additional documentation and this can possibly extend the process several weeks or months.

All things being equal, sellers often prefer to work with buyers who have Pre-Approval letters, rather than Pre-Qualification letters, particularly in a competitive market where homes get multiple bids. In some cases, it can mean the difference between getting the home you want – or sellers choosing another buyer because they have a firm Pre-Approval letter.

Comparison-Shop For Your Loan

It’s unlikely you would buy a car, piece of furniture, or appliance without shopping around. So it stands to reason that you definitely shouldn’t think about taking on a 30-year loan without doing some serious research.

If you know the approximate cost of the mortgage loan you’ll need – you can actually do your comparison shopping before you even select your new home. How? Because you’re shopping costs and rates at this point – not actually applying for a mortgage loan.

These are the 3 important points to keep in mind when comparison shopping:

1) Mortgage Broker vs. Mortgage Lender. As we explain further in our “Shop and Compare” video, and in even greater depth in this recent articlenot all mortgage lenders are the same. So simply knowing the difference between a mortgage broker and a mortgage banker is critical because the two don’t have to operate according to the same regulations. (Spoiler Alert: Mortgage brokers are more strictly regulated and must disclose all costs to the borrower – mortgage bankers don’t have the same legal obligation.)

2) Shop At Least 2 Lenders. It’s important to meet with several lenders so that you can obtain Loan Estimates from each. Then you can compare not only the fees they will be charging you, but also the interest rates.

That’s because the interest rate can mean additional costs to you over the duration of your loan of several thousands of dollars. Why? It goes back to the Broker vs. Banker rules. Mortgage bankers are allowed to add fees to your loan through what are called “Service Release Premiums” – and they don’t even have to tell you about them. Mortgage brokers are not allowed to charge these fees – by law.

3) Ask About Fees. Another thing to look for on your Loan Estimate is fees – such as Loan Origination Charges, Document Fees, Underwriting Fees, and others (commonly known as ‘junk fees’). These can add up to $4-$8,000 or more – and they come right out of your pocket at closing. At Premier Mortgage, we’re proud to offer a true “No Fee” loan that charges $0 for these items.

But the good thing is, by reviewing the actual Loan Estimates you receive you will be able to do an apples-to-apples comparison of how much your loan will cost you with each lender. The bottom line is that by shopping around for the right mortgage loan, you can save money. A lot of it.

And remember – although each lender will look up your credit information, you don’t need to worry every inquiry will hurt your credit score. The Fair Isaac Corporation, or FICO, allows people to “rate-shop” for a mortgage without dinging their credit scores, as long as you do all of your shopping within a 14-day window. Abide by that timeline and the credit bureaus will regard that first credit pull as a “ding,” but ignore the subsequent ones.

Obtaining Final Loan Approval

Armed with your pre-approval letter, you make an offer on your dream home and then (hopefully!) it’s accepted by the seller. (Hooray!) Next, you’ll need the lender to conduct an appraisal. There may also be requirements in the purchase agreement to allow for home inspections, to make repairs, and other items specifically requested by the buyer and/or seller.

As these will vary from one transaction to another, the time required to complete these steps will vary, too. While home inspectors are normally available with short lead time, a licensed appraiser may have a backlog of up to two weeks or more. Appointments must be scheduled that accommodate all parties – so being flexible with your schedule can help. And it can also take several days to receive these reports back which, if approved, will then allow your loan to continue through escrow.

Then, you’ll need to arrange for insurance on your new home and work with the escrow company to provide any necessary legal documentation that is required. The escrow company must also conduct a title search, issue title insurance, obtain loan documents from your lender, and more.

In some (uncomplicated) cases, the entire process can be managed in under 30 days. In other more complex situations it can take several weeks or even months to conclude. But by providing the documents requested by your mortgage lender in a timely manner and meeting all of the buyer’s obligations as quickly as possible – you can effect a huge difference in the amount of time it takes to get final loan approval for your mortgage – and then plan your move into your new home!

More questions? That’s what we’re here for. Give us a call to discuss your situation, and we’ll be happy to help!

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.