These days, it’s hard getting credit in Nevada. Sure, homes are plentiful and prices are low enough to lend themselves to some great deals. But banks are skittish, and other lenders aren’t any more at ease. So, if you’d like to give yourself a better chance at getting a new home, know these 5 things before trying to buy a new home.
1. Credit score. Although some banks are looking at credit scores with a skeptical eye, it still doesn’t hurt to have a good one. You used to be pretty good if your score was around 650, but in today’s world, if you don’t have a credit score closer to 750 you might be out of luck. Having a lower credit score doesn’t necessarily disqualify you from getting a loan, but you can bet you won’t be getting one of those great 4% loans.
2. Credit report. You should get at least 2 of your 3 free yearly credit reports and take a good look at them for anything that might stand out as a negative. Sometimes you can easily explain things away, but if not, be prepared to hear bad news concerning your loan.
3. Money in the bank. The days of no-money down loans are gone, at least for now. Banks want to see that you have liquid cash to spend in your account before they’ll consider you. That’s because these days many banks are looking for new homeowners to put down at least 20% on their new home, unlike in the past where you could put down 5% or add it to the closing costs of the house.
4. How much home you can purchase. You’ll be wasting your time if you think you can get a million dollar home on $20,000 a year income. Any good realtor will help you determine just how much house you can afford, but a nice rule of thumb is to reduce the high amount of a home they give you by 50% when you start looking. They don’t take into account things like utility bills, food, etc in making their estimates on what you can afford.
5. It’s a long process. Unless you walk in with a check for the entire amount of a house, it’s going to be a long process. You need to be thankful that it takes a long time, because if you can make it through all the audits of your credit and fiscal history it gives you more time to think about whether you really want the house you’re looking to purchase. Don’t ever take this decision lightly, nor let anyone else steer you towards any home you might have reservations about.
See also:
Mitch writes on real estate, finance, and many other things. 
No Comments