This is a helpful guide to buying Nevada property. Not all of my clients are experienced in the process of purchasing a home or condo. Many are first time home buyers or people that have lived in a home for quite some time and decided to retire in Las Vegas. Even if you have purchased a home in the last 5 years you may find this helpful.
- Start out by finding a Realtor you feel comfortable with and can trust. Since you've already contacted me, you're off to a good start.
- Since all offers you submit on a home will require a pre-approval or proof of funds from a qualified lender or bank, your next step is to find a good lender to help you finance the home you plan on purchasing. If you're paying with cash, you will need to supply documentation from your bank that you can afford to purchase the home you're interested in. Please black out account numbers with a black marker before sending it to the me. This also gives the Realtor information on what price range of home the buyer can afford. If you would like additional information about this step, please contact me at 702-809-6300.
- Although Realtors know a lot about the Las Vegas, Henderson, Green Valley & Summerlin areas, please do not rely on them to do all of your homework. Since this is where you're going to live, you want to make sure you're making the right choice. Once you find a city or subdivision that interests you, go back at different times of the day and evening. I've had clients thank me for this advice many times. If you have school age children, you may want to spend some time at www.ccsd.net which is the Clark County School District site. If you would like information on crime statistics, please go to www.lvmpd.com which is the Las Vegas Metro Police Department website. Most Buyers do not know that Nevada law does not allow Realtors to speak about schools or crime.
- Now that you have the tough part out of the way you can start viewing homes. It helps to have a good idea of what you're really looking for in a home. Write down your needs and wants in a home. It makes the process a lot easier.
- Pick the home you like and write an offer. One of the many things your Realtor will do is give you an idea of what the market value of the home is at the time you decide to write the offer by running comps. Comps are a computer generated printout of what homes have been selling for in the subdivision and surrounding area you're interested in. It's up to you to pick the price you want to offer the seller. At the time the offer is submitted, you will need to write a check for the earnest money deposit. The earnest money deposit is set by the Seller but is negotiable. Please keep in mind that market conditions, days on the market and seller motivation have a lot to do with what the seller will accept.
- If your offer is accepted, your Realtor will send all the information regarding the purchase to your lender and your lender will begin the process for you to qualify for a loan to purchase the home. This includes the loan application. If you're paying cash, this step does not apply to you.
- The Realtor will open escrow with a local escrow/title company. At this time, the check you gave the Realtor for the earnest deposit is sent to the title company, and they will open an escrow account with the earnest money. The earnest money is used towards the buyer's closing costs.
- If you are waiting on loan approval from the lender, this can take up to 45 days depending on which type of loan you selected. With cash offers, the total closing is normally completed in 7-10 days.
- Once the seller sends the accepted contract back to your Realtor, the Due Diligence period which is usually 7-10 days starts. During this time, you must have all inspections completed on the property and any repair requests sent back to the seller. Usually this consists of a home inspection and any other inspections the buyer requested or the home inspector recommended. Inspection costs are dependent on the size of the home and the Inspection Company used. It is also your responsibility during this time period to check on the cost of home owner's insurance, check on school, crime and any other information that will help you decide if you want to purchase the home.
- The lender will order the appraisal. The appraisal is very big part of your home buying process. It may take a week to a month to get the appraisal back.
- Approximately 1-2 weeks into the transaction the title company will send you escrow instructions and the preliminary title report. This information will show if any outstanding loans, unpaid HOA fees & unpaid taxes exist and if there are any additional liens on the property. It will also show you if there is clear title on the home so it can be sold. Wiring instructions will be included with this information. This time frame is escalated with all cash transactions.
- The lender will request information from the buyer that will determine if you qualify for the home loan. This is a very important piece of the transaction and is reliant upon you to supply all requested information in a timely manner. If you delay in getting this information to the lender, it will delay the transaction or cause it to be cancelled.
- Once the loan underwriter has determined you qualify for the loan, loan docs are sent to the title company for review and a time for signing the documents is made with the title company. If you're out of State, this can be handled by over night service. At this time, you should contact your insurance company and have insurance and utilities activated on the home as of the day of closing.
- At the appointment for your signing, all the necessary loan and title documents are signed. After a review of the documents by the signing rep, the closing package is sent back to the lender for final review. Once the lender signs off on the signed documents, the money for the loan is wired to the title company for distribution to the bank and or the seller.
- The title company has the deed recorded in your name at the County.
- The title company notifies the Buyer's agent the title has recorded and the agent is allowed to give you keys to the property.
Hopefully, this all goes smoothly and everyone is happy. If there are any problems, it is usually lender or title related. The Realtor never knows when there is going to be a transaction problem until they are notified by the lender, title company or client. As soon as I know there is a problem, it is my duty to inform the Buyer of the issues and get involved to get them fixed as fast as possible. This information is based on normal transactions. With short sales and bank owned properties, time frames can be much longer.
I hope you found this information helpful. If you have any questions, please contact me at 702-809-6300 or at firstname.lastname@example.org.
James 'Brad' Zebio
Realty ONE Group