Buying a home is a huge financial decision for any individual or couple to make, especially if you're never owned a Reno home before. If you're considering purchasing your own Reno residence, now is a fantastic time to do it. Prices have come way down from a few years ago, interest rates remain at historical lows and there is enough inventory to provide a wide variety of choices. However, it takes more than a downpayment to buy a home. Here are a few tips for buying your first Reno home:
Credit is King - Getting your credit in as good a shape as possible before you buy sets you up to receive the best possible interest rate on your mortgage loan. Even a 1/2% different in interest rates can mean you pay thousands of dollars more or less over the life of your Reno home loan. The very first thing you need to do is go to AnnualCreditReport.com to obtain the most recent credit report from each of the three credit reporting agencies (Experian, TransUnion and Equifax). This is the only "official" site where you can receive one free report from each agency per year.
Once you have received your report, look it over for errors. These happen more often than you think. Since your credit information may not be reported to all three agencies from each of your creditors, the data the agencies collect may vary greatly from agency to agency, resulting in a wide range of credit scores between the three. When you find an error, submit a request to the agency to have it removed from your report by informing them of the error, providing detailed proof to back up your claim and requesting that the error be removed. Just telling them there is an error will not be enough. Always make sure to submit this in writing.
Sock it Away - Save whatever you can, as much as you can, as soon as you can. To appease many mortgage companies and to avoid having to pay PMI (Private Mortgage Insurance), you must put down at least 20% of the sales price on a Reno home. However, there are programs in place for anyone who does not have 20% to put down. It is important to keep in mind, however, that the more you put down, the less you have to borrow. When you borrow less money, your mortgage payment is less.
Interview Real Estate Agents - Yes. I said agents...as in plural. Look, you're going to be working closely with this person for a few months. You want to feel comfortable that they know what they are doing, will act in your best interest and are willing to communicate with you on a regular basis to your satisfaction before opening up your life to them on such a personal level. Ask for recommendations from friends, family and colleagues who have recently purchased a Reno area home. Check out their references. Agents are like snowflakes: no two are exactly alike. You need to do some investigating to find which agent meshes with your personality in order to make this real estate transaction happen smoothly.
Some of the most important, basic tips for buying your first Reno home include checking your credit score for errors, getting them corrected, saving as much money as you can and finding the right agent. This can take a little time and a lot of patience. I promise you, though, that it is well worth it. When you're ready to go looking at houses in the Reno area, please let me know. I'll be happy to talk with you.
Charlene Hamilton, Certified Distressed Property Expert, Helping Reno Homeowners Avoid Foreclosure
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