Did you know that, in 2012, an overwhelming majority of new home buyers began the the process online, and that typical homes in Nevada are up for sale for only 102 days? Buying a home can be a long, drawn-out process, especially for first-time home buyers. Even more alarmingly, the process can involve a lot of unanticipated, and sometimes hidden, costs. What do first time home buyers need to know, especially when purchasing homes in popular markets, like Las Vegas?
Draft a Realistic Budget
A staggering number, or 58%, of first time home buyers are single. The Federal National Mortgage Association recommends limiting housing purchases to 28% of overall income. Unmarried home buyers, of course, have to base that percentage on a single, instead of a combined, income. What can people expect when buying Las vegas real estate?
As of April 2013, the average cost of a Las Vegas home was up to $160,000. True, rates are steadily climbing, or up about 31% in just a year. Buyers need to keep in mind, though, that Las vegas homes cost nearly twice as much just seven years ago, in 2007. One of the best tools for first-time home owners to take advantage of, in Las Vegas and across the nation, is good faith estimates. Good faith estimates are required by law, typically within three days of applying for a loan and mortgage, and provide a realistic approximation of final costs.
Determine Whether a House, Or Condo, Best Suits You
Did you know that Las Vegas condo sales are up by 13.3%, in just one year, or from 2012 to 2013? Another factor to take into consideration is whether you would benefit most from moving into a new house, or choosing from one of Las Vegas’s many luxury condos. Houses offer a certain amount of freedom, but they also require much more responsibility. Buying a condo takes burdens off residents, which may suit a new, or first-time, buyer. When purchasing a condo, condo associations are typically responsible for mowing, landscaping, and the majority of maintenance and repairs.
With the fickle economy and housing industry, first time buyers need to be especially cautious. Buyers need to draft a realistic budget, make strategic use of good faith estimates, and decide whether buying a condo, or Las Vegas house, would best suit them.
Is that just 28% of annual income? Because, if that’s true, people would need to make more than $400,000 per year to buy a house. or are we talking 28% of mortgage payments? that seems more reasonable.