What you should do before you get a Las Vegas Mortgage to buy a home

1. Looking for a home without being pre-approved.
   Pre-approval and pre-qualification are two different things. During the pre-qualification process, a loan officer asks you a few questions, then hands you a “pre-qual” letter. The pre-approval process is much more thorough.
   During the pre-approval process, the mortgage company does virtually all the work associated with obtaining full-approval. Since there is no property yet identified to purchase, however, an appraisal and title search aren’t conducted.
   When you’re pre-approved, you have much more negotiating clout with the seller. The seller knows you can close the transaction because a lender has carefully reviewed your income, assets, credit and other relevant information. In some cases (multiple offers, for example), being pre-approved can make the difference between buying and not buying a home. Also, you can save thousands of dollars as a result of being in a better negotiating situation.
   Most good Realtors® will not show you homes until you are pre-approved. They don’t want to waste your, their, or the seller’s time.
   Many mortgage companies will help you become pre-approved at little or no cost. They’ll usually need to check your credit and verify your income and assets.
2. Making verbal (oral) agreements!
   If an agent tries to make you sign a written document that is contrary to their verbal commitments, don’t do it! For example, if the agent says the washer will come with the home, but the contract says it will not–the written contract will override the verbal contract. In fact, written contracts almost always override verbal contracts. When buying or selling real estate, abide by this maxim: Get it in writing!
3. Choosing a lender because they have the lowest rate. Not getting a written good-faith estimate.
   While rate is important, you have to consider the overall cost of your loan. Pay close attention to the APR, loan fees, discount and origination points. Some lenders include discount and origination points in their quoted points. Other lenders may only quote discount points, when in fact there is an additional origination point (or fraction of a point).
   This difference in the way points are sometime quoted is important to you. One lender will quote all points, while another lender may disclose an extra point, or fraction thereof, at a later time–an unwelcome surprise.
   Within 3 working days after receipt of your completed loan application, your mortgage company is required to provide you with a written good-faith estimate (GFE) of closing costs.You may want to consider requesting a GFE from a few lenders before submitting your application. With a few GFEs to compare, you can get a feel for which lenders are more thorough, and you can educate yourself regarding the costs associated with your transaction. The GFE with the highest costs may not indicate that a particular lender is more expensive than another–in fact, they may be more diligent in itemizing all fees.
   The cost of the mortgage, however, shouldn’t be your only criteria. There is no substitute for asking family and friends for referrals and for interviewing prospective mortgage companies. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what they promise.
4. Choosing a lender because they are recommended by your Realtor®.
   Your Realtor is not a financial expert. He or she may not know which loan is best for you. Your Realtor® gets a commission only when your transaction closes. As a result, the Realtor® may refer you to a lender who will close your loan, but who may not have the best rates or fees. Also, many Realtors® refer you to one of their friends in the loan business–who also may not have the best rates or fees. Although most Realtors® are professional and concerned about your best interests, you should do your own homework.
   We recommend shopping for a loan with at least three mortgage companies before you make a decision. There are countless stories of consumers who ended up paying higher rates, or got a loan that wasn’t right for them, because they blindly followed their Realtor’s® advice.
5. Not getting a rate lock in writing.
   When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and other particulars about the program.
6. Using a dual agent (an agent who represents the buyer and seller in the same transaction).
   Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In most situations, dual agents cannot be fair to both buyer and seller. Since the seller usually pays the commission, the dual agent may negotiate harder for the seller than for the buyer. If you are a buyer, it is usually better to have your own agent represent you.
   The only time you should consider using a dual agent, is when you can get a price break (usually resulting from the dual agent lowering their commission). In that case, proceed cautiously and do your homework!
7. Buying a home without professional inspections. Taking the seller’s word that repairs have been made.
   Unless you’re buying a new home with warranties on most equipment, it is highly recommended that you get property, roof and termite inspections. These reports will give you a better picture of what you’re buying. Inspection reports are great negotiating tools when it comes to asking the seller to make repairs. If a professional home inspector states that certain repairs need to be made, the seller is more likely to agree to making them.
   If the seller agrees to make repairs, have your inspector verify the completed work prior to close of escrow. Do not assume that everything will be done as promised.
8. Not shopping for home insurance until you are ready to close.
   Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and find they have no time left to shop around.
9. Signing documents without reading them.
   Do not sign documents in a hurry. As soon as possible, review the documents you’ll be signing at close of escrow–including a copy of all loan documents. This way, you can review them and get your questions answered in a timely manner. Do not expect to read all the documents during the closing. There is rarely enough time to do that.
10. Making moving plans that don’t work.
    You expect to move out of your current residence on Friday and into your new residence over the weekend. Also on Friday, your lease terminates and the movers are scheduled to appear.
    Friday morning arrives: bags packed, boxes stacked, children under arm and the dog on a leash; you’re sitting on your front door stoop awaiting the arrival of the movers.
    Your phone rings. Your loan closing is delayed until the following Tuesday. The new tenants turn into your driveway with a weighted-down U-Haul and the movers pull up across the street.
    You ask yourself, “Where’s the nearest Motel 6 and storage facility? How much will the movers charge for an extra trip? Can we afford it?”
    How can you avoid such a disaster? Cancel your lease and ask the movers to show up five to seven days after you anticipate closing your transaction. Consider the extra expense an insurance policy. You’re buying peace of mind–and protecting yourself from expensive delays.

The Team at Las Vegas Mortgage can help you.

Visit our partner at Tempe Foreclosures

Las Vegas Home loans team is a residential real estate lender, specializing in Conventional, VA, and FHA financing for the Las Vegas, Nevada and surrounding communities, for purchase and refinance transactions.

Company Philosophy
As one of the few Las Vegas mortgage lenders to look out for the consumer, we always value our clients’ trust and business by providing them with ”Lower cost mortgage solutions”. We also pride ourselves on being mortgage experts and staying up to date on current mortgage trends.

How is this done?
We have aligned ourselves with the most competitively priced mortgage lenders in the country, and because of the high volume of business we transact with these lenders, we receive “better than market pricing.” We pass this savings on to you, our customers, so you can always be assured of receiving excellent pricing.

What distinguishes us from our competitors?
We only hire very experienced, honest, and ethical loan officers and processors, many with graduate level education. These traits make them excellent at identifying and articulating the best financing options available for each client’s particular needs. And because we keep our overhead low, our “end price” to you is as low as possible.

Why do business with us?
If you are looking for a very competitively priced menu of loan options, a staff of people who can properly educate you about these loan options, and then deliver these loan products to you in a very efficient and painless manner, you’ve found the right place.

Can you tell us any more about yourselves?

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout Las Vegas, Nevada and the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

At the best Las Vegas Mortgage company you can expect to be treated not like a customer, but a good friend. We value long term clients, and many of our previous customers have come back to finance their second or third home with use.

During you first car purchase, did you use negotiation to talk the price down? I’m assuming you did. The years may have went by and you are a bit older now, but now that you are working on buying a home and taking on a sizable Home Mortgage you should sharpen up your negotiation skills to put them to work to help you save thousands of dollars on your Mortgage Loan!

At Las Vegas Mortgage we understand the need to save money on your new home, we’re just like you.

Let’s start out with talking about fees - all the processes and documents that Home Loan lenders like to charge you for. Document preparation fees, research fees - talking about fees fee. All these fees can be talk down. After all, it’s not like they are using a scribe to write out your Home Mortgage documents — $275 to prepare a standard mortgage contract is a bit much. Ask about every fee and work to get them down. Let the lender know that you know they aren’t the only game in town and make them earn your business. Even if you knock only $100 off that is $100 more in your pocket for just a few minutes worth of negotiation. Do spend the time to negotiate bigger fees, and not the small ones. Start with the largest fee on the list - usually the lender/broker fees charged for points - and work your way down.

Now let’s talk about the rate you pay on your Mortgage Loan. Even a little discount can be a huge savings in the longer term when it comes to the Home Loan interest rate. The best way to negotiate on rates is to shop around and let each mortgage lender know that you are doing so. Always shop around with at least three mortgage lenders and be sure to check out the lenders who have setup shop online. Often times the best rate deal may not even be with a Home Financing lender in your hometown!

Mortgage Loan points is another concept you should be familiar with as you negotiate your Mortgage Loan. Your Home Financing lender is going to require you to pay these up front fees that could lower your interest. Another name for points is prepaid interest. Your best tool here is to make sure you understand that points only have real value if you plan to stay in your home for a length of time and you are not planning to refinance within a few years. Having said that, if you decide to purchasing points don’t be afraid to do some negotiation here - you could save yourself a sizable chunk of change by asking your Mortgage Loan lender to give a discount with the points.

The fact is the lender has a company policy on how much they need to make on a Home Financing loan. They know that there are many other mortgage brokers that can give you the Home Financing and will generally work with you in getting your Home Loan setup where both you and they can compromise a little. The biggest negotiating tool that you as a Home Financing shopper have is cash (and a good credit score). The more cash you can put down as a down payment on your home the better the position you will be in to negotiate with the lender.

As you prepare to get your next Home Financing use your negotiation skills to work the best deal possible. Don’t expect to win every battle, but you will be able to save a few bucks by being willing to negotiate with your Home Mortgage lender — just remember, negotiation means that you may have to compromise with the lender. You can’t have it all!