Three Tips for Better Home Financing in Las Vegas

Summerlin condos

Did you know that the average sale price of Las Vegas property in 2013 was $150,000? Although 2014 is seeing steady gains as the economy picks up, the market is still well below 2007’s high of $306,000. In other words, it’s a good time to invest in property that’s likely to cycle back into higher value over the next several years.

Money is a big part of choosing your new home, and there’s more to it than just figuring out the applicable mortgage rates. Here are three financing tips for families looking for Las Vegas homes.

1. What Home Type to Look For

There are many different types of homes in this region, and you might be surprised when what you are originally drawn to, isn’t what you fall in love with. If you have a young family, downtown Las Vegas condos can be just as appealing as Summerlin homes on the city outskirts, depending on what you’re searching for. Key factors for finding the right home should be commuting distance, quality of the local area, and price. Financial experts recommend not exceeding 28% of your gross monthly income on mortgage payments.

2. See if You Qualify for Government Home-Buying Assistance

There are many government home buying programs available for both low-income and first time home buyers. The government guarantee that helps make buyers more appealing to lenders is set by regional maximums. The maximum purchase price in Las Vegas that the government can cover, for example, is $360,000. There are typically a variety of local, state and federal programs you might be able to access — explore your options for the region.

3. Look to the Future, Avoid Foreclosure

Foreclosure is a scary word, and in 2013, Nevada experienced higher foreclosure rates than any other state, with the exception of Florida. As the economy bounces back, consumers will likely have more of a financial cushion beneath them. There are a few steps you can take, though, to make sure this doesn’t happen to you. Plan on buying a home that requires a lower monthly mortgage — not one that strains your savings. Savings experts recommend having an emergency fund that can cover three to six months worth of expenses. Ask yourself: if you were to fall ill and were unable to work for a period, would this potentially impact your home ownership? Sometimes, buying a condo can be a good step before buying a home that requires greater upkeep and financial commitment.

Do you have tips for buying a home in Las Vegas?