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5 Las Vegas Home Buyer Traps – Avoid Them!

Hello Las Vegas home buyer!  Your home purchase may be the biggest financial investment you make during your lifetime.

Scary thought, isn’t it? Not if you approach this investment as a business person would.

Buying a home is a business transaction and, to avoid costly mistakes, it needs to be addressed as one. This means performing careful research, absorbing knowledge and keeping your emotions at bay.

Let’s take a look at the five most common mistakes that a Las Vegas home buyer tends to make.

Las Vegas Home Buyer Trap #1- Not Getting your Financing in Order

Obtaining loan pre-approval is the most important step to take during the home purchase process. It should be the first step you take as well, and for several reasons.

First, the mortgage pre-approval process lets you know how much you can realistically and comfortably pay for a home.

Just as you wouldn’t go car shopping without a clue as to how much you can spend, don’t look at one house until you know your limit.

Additionally, in a fast-moving seller’s market, most homeowners don’t even want a non-pre-approved homebuyer to look at their homes.

It’s not a stretch, then, to understand that they most likely won’t entertain an offer from one.

Without that preapproval letter, you may just lose the home of your dreams to another, pre-approved buyer.

The process is relatively painless and not overly involved. It’s free, too, so there is no reason not to make your first home buying step one that leads you over the doorstep of a mortgage broker or bank.

Here at LasVegasRealEstate.com, we recommend to our readers one of our Preferred Partners: Lender for your pre-approval letter.  By the way, don’t just get a pre-qualification letter – it’s not worth the paper it’s written on.

Go the extra step and get a pre-approval letter from your lender.  Homeowners like pre-approval letters a lot more!

Buyer Trap #2- Not Understanding the Loan Process

Ask the lender about any charges and fees that you don’t understand. This way, there will be no surprises at the closing table. If a fee or charge sneaks into the closing documents you’ll notice it and can take action.

Standard fees include document preparation fees, underwriting fees, loan disbursement charges, and others.

By law, the lender is required to provide you with a form called the “Loan Estimate” that includes a listing of all fees in advance of closing.

Never hesitate to ask if you don’t understand anything on this form and don’t assume that there won’t be additional fees at closing.

Then, at closing, you’ll receive the “Closing Disclosure” form that you can use to compare to the Loan Estimate.

Buyer Trap #3 – Not Performing Due Diligence

While the Seller has a duty to you to answer any questions you have about the home honestly, you have a duty to protect yourself by performing various inspections before you fully commit to purchasing the home.

Hire a professional home inspector to go over the home’s major systems. While these inspections are visual (nope, the inspectors don’t open walls), a capable and experienced inspector may notice problems that the untrained eye won’t.  Here at LasVegasRealEstate.com, we would like to offer Las Vegas home buyers a big piece of advice: Don’t ever waive your home inspection.  Best money you will ever spend!

Even if you decide that you want to purchase the house no matter what, it’s much better to know about these problems up front so that your Realtor may negotiate a lower price or cash back at closing for repairs.

Las Vegas Home Buyer Trap #4- Judging the Book by its Cover

It’s easy to fall in love with décor. This is why new home developments feature model homes. These homes are carefully staged to appeal to the consumer’s emotions.

By the same token, it’s easy to dislike a house because it’s messy, dirty or has dated furnishings and features.

It’s so important to remove your pre-conceived notions of what the perfect house will look like. Only then can you truly see a home for what it offers – both the good and the bad.

Don’t allow the dazzling décor to make you forget what it is you want in a home. Don’t let a messy house cloud your vision of its possibilities. Carpet can be replaced, walls can be painted.

Focus on the layout of the house, and not the cosmetics.

Buyer Trap #5- Not Considering Additional Expenses

When you’re pre-approved for a home it’s tempting to buy at the top of your limit. Don’t give in to the temptation.

When you purchase a home, you take on expenses you didn’t have when you rented a home.

If the house is in a managed community you will likely have monthly home owner’s association dues. If the home has a pool you will pay for maintaining it.

Many renters don’t pay for water but homeowners typically do. The ongoing maintenance of the home falls on your shoulders, so it’s important to leave enough room in your housing budget to take care of them.

We recommend all buyers ask the seller for copies of utility bills for the past year to get an idea of how much they can expect to pay if they purchase the home. Make it a part of your due diligence on the home.

While these are the most common mistakes homebuyers make they are in no way indicative of all of them. We recommend you speak with our Preferred Partner: Residential Realtor to help you develop a home purchase strategy that will avoid all of these mistakes and more.

Contact our Preferred Partner: Residential Realtor for a free home buying consultation and they will show you:

– How to get pre-approved for a mortgage

– How to buy the right home for your needs

– What to put on your wish list

– The entire home buying process, from start to finish, in plain English.

Thank you for reading our post, “5 Las Vegas Home Buyer Traps – Avoid Them!”  For more Las Vegas real estate home buyer tips, market news, information on homes for sale, or general real estate information, please visit our website www.lasvegasrealestate.com or come see us on Facebook.

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