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.

Is Now A Good Time To Buy

Many people are wondering if now is a good time to buy a new or their first home, with the rising prices and interest rates. In my opinion yes it is! The rising prices have slowed down and are not taking big jumps like they were. As for the interest rates on home loans going up. Over the last 4 decades the average mortgage interest rate has been 8-9 percent. With the average interest rate of about 4 1/2 percent for a conventional loan right now you could purchase a home for $200,000 with 20 percent down or $40000, and have a monthly payment of about $811 for interest and principle. Over the 30 years of the loan you would pay $131851 total interest. Compare that to the a loan at 9 percent for 30 years your payment would be about $1287 a month and you would would pay a total of $303463 in interest over the 30 year. That's a savings of a whopping $171612. For a loan of the same amount at 5.5 percent your payment would be about $908 interest and principle with a total loan amount over the life of the loan of $167046. Along with that Fannie Mae is offering money to help with closing costs to non investors. You may be qualified to receive up to 3.5 percent towards your closing costs.

Recently Sold Las Vegas Home near Summerlin

I recently sold this 3 bedroom, 2 bathroom home with a 2 car garage near Summerlin. It was listed for $195,000.00 and closed for $200,00.00 in less than 60 days. It had a solar heated pool and hot tub with a RV gate. There was a lemon, orange and pomegranate trees on the property. The back yard with the pool and hot tub had 3 raised bed flower beds

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