Picking a lender is extremely important and is one of the first things you will do to start the process of buying a house in Henderson. Most people will choose the bank or mortgage company with the lowest interest rate. This can be a smart choice as the lower the interest level, the less you will have to pay on your house over time. However, this can be a sacrifice as many bigger banks and credit unions can offer these lower rates, but they often have less experienced mortgage agents and can take much longer to get paperwork done. Also many of our past clients have found that these mortgage agents will never meet them face to face and discuss all the mortgage options that are available to them, such as down payment assistance, benefits to larger down payments, and more.
When you choose a lender, you will submit personal information such as how much you make and how long you’ve been working at your current job. Bank statements and pay stubs will also be requested as proof of how much money you have in savings and how much you really make at your current position. Once the lender processes the information, they will send you a prequel letter officially stating how much money they will lend to you. You will want to forward this letter to your real estate agent so they can take you house shopping!
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It’s time to choose a home! It is imperative that you are open and honest with your real estate agent as to what you do like and what you don’t like about each home. Take notes about the areas you are looking in and each home so that you can remember the pros and cons of each house you look at. After seeing 10 homes they all start to run together, so be sure to write down details for each. You will want to bring along anyone involved in the purchase of the home with you – if you are purchasing a home with a friend or family member, be sure that they are with you as you are looking for your next home. This can be one of the most exciting of the steps to purchasing a home in Henderson, so enjoy yourself during this part of the home buying process!
When you find a home that fits your budget and meets your needs, talk to your agent about making an offer. There are many things to consider when making an offer, and your experienced Henderson real estate agent will know a good ball park price that would be good for your to offer on the home. Offers will include price and what is included in the sale. For instances, you may want to purchase the home for $X amount, you want the washer/dryer to be included in the sale of the home, and you want a home warranty. Other things that can be included are money for repairs for issues found in the home inspection, closing costs, any item that you like in the house (Yes! You may love their dining room table and request that it is included in the sale of the home!), and more. This is when the process starts to get stressful, once you write an offer with your real estate agent, you will typically have to wait 24-48 hours until you get a response from the seller.
Depending on your offer, your seller may make a counter offer saying that they will accept your terms, with a few exceptions. They can raise the price of the offer or say that they will not include certain items that you requested. This is one of the reasons why getting an experienced Henderson real estate agent on your side is vital to you getting a fair deal on your home. They will be able to tell you if the seller is being fair of if they are expecting too much from you.
If you come to an agreement with the seller, you will send your earnest money deposit to the escrow company which is agreed upon during negotiations. An earnest money deposit is usually a thousand dollars to several thousand dollars that is surety that you are serious about purchasing the home. You will have certain timeframes during escrow that will allow you to back out of the sale (if that is what you wish to do) and still receive the EMD back. However, if you back out at the wrong time, you will lose your EMD to the seller of the home to compensate for the time you’ve taken from them. The first 10 to 14 days (usually) are such a time when you can back out of the sale and keep your EMD.
During this time you will want to get an inspection and contact your lender to send an appraiser to appraise the home. The inspection will let you know what you need to fix in the home and what may cause you problems down the road. You can use an inspection to renegotiate the price of the home or request for the seller to fix certain items before close of escrow. The appraisal will determine a calculated value for the home. Mortgage lenders require an appraisal so that they know that you are using the money for the purchase of the home and that you don’t buy something that you will immediately be underwater for. If the appraisal comes in below the price that you agreed upon before escrow, your agent may be able to talk the sellers down in price.
After the appraisal and inspection’s possible negotiations, be sure to contact your lender and make sure they’re aware of the changes. You should be contacting your lender about once a week to make sure that they are aware of what is going in in the sale and that they have all the required paperwork from you and from your real estate agent. The loan process is usually what takes the most time, and if they’re behind you have a problem and may need to extend escrow. Reaching out to your lender for updates can be done with a quick email. This will help you be able to see what you’ve already told them and what you need to further discuss with them.
You will most likely sign closing docs at the title company. There will be a representative to walk you through the process and your real estate agent may also accompany you. A day or two before you go to your signing appointment, you will want to complete a final walkthrough with your real estate agent. This is to make sure that everything was as it was when you had the appraisal and inspections. Unfortunately, sometimes a house will get torn up by the owner or tenant of the house moving their stuff out. This allows you the opportunity to make sure this doesn’t happen, and if it does, you get reimbursed for the damages. Before the signing date you will want to also make sure that your mortgage officer and real estate agent are ready for the scheduled signing date.
If all parties are ready to proceed, go to your signing appointment! Once you sign your stack of closing docs. You will have to wait several days for the transaction to fund and record. This means that the mortgage company will give the funds to escrow, who will divide them up to the seller, real estate agent, and other invested parties. The county will then record that you are the new owner of the home. After that ordeal you will get your keys and more into your new home!!! This will be the last part in the process of buying a house.
One thing to note is that every real estate transaction is different. You may need to include a termite inspection in addition to the initial inspection if you inspector finds termite damage. You may need to extend escrow if all parties aren’t ready to sign the final documents. You may be purchasing a home with an HOA, which means you will have to review the HOA docs and give permission to produce with the sale if you are ok with the HOA rules and regulations. Whatever your transaction may look like, this is the basic framework of the process of buying a house in Henderson, Las Vegas, and Boulder City.