WITH A LAS VEGAS REAL ESTATE AGENT PLUS THE RIGHT MINDSET
Unless you’ve had occasion to buy a corporate jet or office building recently,, the sheer size of a home purchase puts it in a class of its own. One indicator is that most people decide to engage the services of a Las Vegas real estate agent to help them out. This is not a trip to the mall… It follows that first-time home buyers usually approach the whole process with a great deal of caution—an entirely appropriate attitude. Buying a home is one purchase you will be living with for a long time, so getting it right is worth any amount of effort. Veterans of the home-buying fray start out with the advantages experience brings. They know the how’s, when’s and why’s of the home inspection and loan application processes, and when their real estate agent supplies them with listing printouts, their eyes quickly fall to the details that are most important in their current quest (that could be anything from property tax figures to details about the mechanicals). If they aren’t yet familiar with all of Las Vegas’s neighborhoods, they know to quiz their real estate agent about the pertinent local characteristics, especially when some features like school ratings or traffic patterns are likely to be key factors in the final choice. And they know that the first property that looks good on paper may not pan out in person. For first-timers as well as home-buying veterans, there is one key mental predisposition that is sure to make the experience less stressful—and possibly more rewarding. It’s a mindset that doesn’t always come without effort—especially when time pressures are involved. The virtue in question is straightforward: patience. • Don’t Rush Don’t give up after the first five (or eight) houses. Home buying is a process, and it can be a glacial one at times. By showing you houses, your Las Vegas real estate agent gets an ever-sharper idea of what you’re searching for. You may not wind up with the first or even tenth house you are shown. If you prepare yourself for a house-buying process that could take several months, you’re much less likely to let impatience cause you to settle for less than otherwise. • Bid for Value The offer and negotiation processes are more of an art than a science—and this alone would be reason enough to want a Las Vegas real estate agent to be on your team. A Las Vegas agent knows the comps in the area, how truly comparable each is, what they sold for, and how the market is moving. If an offer is countered, your agent can suggest non-monetary inducements where appropriate…and let you know if it might be time to move on. • Don’t Be Discouraged If you bid on a home but wind up losing it, don’t become discouraged. It’s hard to temper emotions when house hunting, but it works for your interest when you continue to view the entire process as a business proposition. Even should a house offer fall through, you can rest assured that there are other viable candidates out there. With patience, a businesslike frame of mind and an experienced Las Vegas real estate agent by your side, the odds are stacked in your favor. Giving me a call is a good way to start taking advantage of them!
NEW MORTGAGE IDEA GETS ATTENTION FROM SERIOUS PLAYERS
Something new is stirring in the ordinarily hidebound world of residential mortgage offerings: a new way of approaching the financing of home purchases. If successful, it might well shift the way some Las Vegas Mortgage contracts are written. The experiment is known as the “Wealth Building Home Loan,” and it addresses a home-ownership problem that has been talked about for a long time, with little being done to solve it. The issue in question is how to unburden new homeowners from spending years in a situation that bears more resemblance, financially, to renting than to owning— especially during the first 3 to 5 years. For low- and moderate-income mortgagees, that’s the difference between sinking into more debt and building wealth. After all, every dollar that goes toward interest is lost, while dollars that pay down principal are investments. According to Edward Pinto, one of the authors of the WBHL, often during the opening years of a 30-year loan, “68% goes to pay interest.” In the new program, 77% of monthly payments go to pay off principal—with the result that in a short time, new homeowners have a much larger equity stake in their homes. And, it is hoped, a sizeable increase in pride of ownership: “a stake in the game.” It sounds good, but you might be wondering how this could be possible. Is this just a ‘pie in the sky,’ feel-good idea that will never see daylight in the real world? Apparently not. The pilot program is being put into action by some serious players: the American Enterprise Institute (if that sounds like a conservative outfit, it is) and administered by the Neighborhood Assistance Corporation of America (if that sounds like a liberal outfit, ditto). And it’s being funded by Bank of America and Citi Mortgage—neither of which would be likely to bankroll some fly-by-night scheme. The mechanics of this kind of mortgage work out like this. First, it’s based on a 15-year term, which, of course, speeds the rate at which equity builds, and second, it’s a mortgage that carries a very low-interest rate. Something for nothing? Not quite: the concept is to • change the underwriting standards to tilt away from credit history and toward recent payment history and residual income, thought to lower lender risk • eliminate the down payment altogether, instead allocating that initial cash toward “points”: buy-downs of the mortgage’s interest rate to .5%, (or even 0%)! It boils down to an approach that could be a win-win. Borrowers (even those who suffered credit black marks during the economic downturn) could be newly eligible for a home loan, and because lenders pocket the interest rate buy-down amount, a proposition they might find acceptable. Should Las Vegas mortgage applicants expect this deal to be available next week? Not likely: it’s in the pilot phase. But if it seems to work out, it could be a shot in the arm for homeowners who can manage a slightly higher monthly payment. If you would like to chat about today’s home loan availability (or any other current Las Vegasreal estate doings), I hope you’ll give me a call!
BUYING A LAS VEGAS HOME GETS EASIER AS RETIREMENT NEARS
One of the advantages of reaching retirement age is that your needs can be much clearer to gauge than they were in the past. When it comes to planning for buying a home in Las Vegas, for instance, you no longer have to worry about many of the contingencies that created vast unknowns earlier on. When we were at the starting line in careers and family life, we couldn’t know exactly where our career would send us, so the level of certainty we had when we bought our first house was sketchy at best. Likewise, the shape of our family, needs of our children (and even those of our parents) loomed as giant question marks. We might have had definite ideas about what we wanted the future to bring, but sooner or later, most of us learned that what happens is up for grabs. In the words of the immortal philosopher John Lennon, Life is what happens to you While you’re busy making other plans… But as the more life experience builds, the better we get at predicting what the future holds. But that’s a skill that is only useful if we take what we now know and apply it. As retirement nears, here are four areas where most of us should be better able to make much better-informed decisions when it comes to buying a home in Las Vegas: 1. Choose an Appropriate Size Many couples seek large houses early in life because they expect to have children. Once the next generation has vacated the premises, though, staying in a home that’s larger than necessary means blown money—not to mention wasted time spent cleaning unused rooms. Retirees may be slow to recognize their new downsizing option: buying a home that better correlates with current needs. They may even want to consider a condo or apartment if minimal upkeep frees up income to direct toward more enjoyable activities. 2. Consider a Single-Level Home Most people experience mobility issues as they age. Some solve the problem by installing expensive devices in their homes, even though they could deal more directly with those problems by moving to a home configured to present fewer challenges. For some people, moving to a simplified home lets them live independently for many additional years–for example, a single-level home without a front porch eliminates stairs entirely. 3. Find a Convenient Location At some point, retirees may reluctantly decide that they don’t feel safe driving their cars. If anyone experiences warning signs of unsafe driving, it’s prudent to give up the keys before an accident forces the issue. This causes fewer problems when a retiree has chosen a convenient location. It could mean living close to stores, public transportation—or near relatives who can help with everyday tasks. 4. Stay under Budget Retirees need to take seriously realistic budget expectations since it’s usually true that they will have less money coming in than until now. An inelastic income may take some getting used to—but knowing what’s coming will make intelligent planning possible. When it comes to locating and buying a Las Vegas home that fits your specifications, I hope you will give me a call to discuss the current crop of appropriate available properties!
Categories
Recent Posts
