Las Vegas Real Estate - Real Estate Las Vegas Online - Donna Hodge & Associates

The 5 Most Common MISCONCEPTIONS About Home Buying

"We don't have enough for a down payment."

There are many ways to buy a home with little or no money down. You could borrow against a retirement fund. If you are a first-time homeowner, you can withdraw the amount without negative tax consequences.

You may qualify for local, state, or federal down payment assistance programs. There's the Department of Veteran Affairs (VA), the Federal Housing Administration (FHA), and the Farmers Home Administration (FmHA). The point is, YOU HAVE ALTERNATIVES.

"We can't afford the monthly mortgage payments."

If you can afford to rent, you can probably afford to buy. When comparing a mortgage payment to a rent check, remember that the mortgage interest is tax deductible in most cases. This may lower the actual costs of owning as opposed to renting even after factoring in property taxes, insurance, and home maintenance. Ask your tax advisor for details pertaining to your personal situation.

There are many loans that feature mortgage payments well below what is commonly found with a conventiona

l 30-year, fixed-rate loan. Check out the savings of adjustable-rate mortgages.

Another way to lower a monthly mortgage payment is to bring in a co-owner, or buy a duplex that is already generating income to help cover your monthly mortgage payment.

"We'll never get a loan with our credit."

Lenders are in the business of making loans. If your past credit history has irregularities, there are still many loan programs available to you.

Many people mistakenly believe that a short employment history or that being self-employed precludes them from qualifying for a home loan. That's just not true anymore. Today more and more people are self-employed and it is not unusual to changes jobs several times over the span of your career in this tight labor market.

"We need to find the property first, then get a loan."

Actually, that's backwards. There are many advantages to prequalifying for a home loan before the search even begins.

First, you will know how much you can afford, and what your payments will be. That narrows your search considerably, saving you time and money.

As a prequalified buyer, you will enhance your bargaining power with the seller. It shows them you are serious about buying a home and have the money to prove it.

Once you have found a property, a prequalification saves time at closing. There is no extra application paperwork to fill out!

"We can't buy because we plan to move in four or five years."

Instead of putting off home ownership and all the money-saving benefits that go along with it, as well as gambling that home prices and interest rates won't go through the roof, you could adopt a short-term purchase plan.

One option would be to buy a fixer-upper at a depressed market price, make improvements, then sell it at or above market price in a few years.

The only true roadblock to owing Las Vegas real estate is a limited imagination. So, stop throwing your money away on rent! Invest in a home and in yourself. A mortgage can build equity for as long as you own your home. When you rent, you are paying for a roof over your head for 30 days at a time.

We work with you and with lenders who will solve your lending needs and prequalify you for a loan. Next, we will locate properties that fit your needs!