The Reserves You'll Need To Purchase Your New Home

Most people when considering buying the first new home don't think about how much money they will really need when it comes time to close. Their big concern is their credit score. It's best to talk directly to your lender to see what their minimum amount that they expect you to have as each lender is different. It will vary with the type of loan & size of the loan to the property & even more. You will probably need good chunk of change up front for closing costs & down payment.Then lenders might want you to have a reserve of a certain number of months worth of mortgage payments. Each lender & loan type is different, that is why it is best to sit down with your lender & find out in advance what you are expected to have. Even though credit scores are important, so are income & assets when applying for a home loan.Here are a few important thing you'll need to have saved up for. First is the down payment which will vary to the type of loan you are getting. Unless it is a government backed loan such as VA and USDA rural development home loan or local or state program, you will need a down payment. Conventional loans typically require 5% down or $10,000 on a $200,000 home, with FHA having 3.5% down or $7,000 on the same price home. Closing costs here in the Las Vegas valley generally run around 3.5% of the purchase price of your home. There was a time when you could ask the seller to pay for some or all of your closing. Right now in the market that is not the norm. As for reserves neither VA or FHA have a reserve required if your buying single-family home. With a conventional loan lender typically want you to have 2-6 months reserve of your monthly income. But it could be more depending on the lender or your risk factors. A healthy reserve amount can help a home buyer who is on the the edge. They can consider this a positive factor ,which may help with a loan file on the edge with past credit or debt issues. Then comes the money you will need to have an appraisal & home inspection. While the lender will require an appraisal, home inspections are not usually required but should be considered essential. The cost of a home inspection in my opinion is a very wise investment.

Why Should I Use a REALTOR To Get My Next Rental In The Las Vegas Valley

It has come to my attention that there are people in the valley that are renting out properties that are vacant but they do not own them. Scammers essentially find homes that are on the market and then create a Craigslist ad. They are breaking off the lock boxes, then renting them out. Check out this link to 8 News Now to see their report. www.8newsnow.com/story/24919438/scam-alert. So if you're looking to rent a place here in the valley it is a good ideal to contact a licensed REALTOR to assist you, they are generally paid by the property management company that is listing the property and there is no cost to you.