Table of Contents

1 min read Feb 03, 2024

How to Buy a House in Las Vegas in 2024: 7 Proven Steps

Buying a house in 2023’s unpredictable Nevada housing market is a challenge. Whether you’re a first-time buyer or looking to make a strategic investment, navigating such a market requires knowledge and careful planning. In this blog, we’ll provide you with step-by-step instructions on how to buy a house in Las Vegas successfully.

Find Your Dream Home 🏡

text 1st item

text2nd item

text3rd item

Find Your Dream Home 🏡

text View 17 Homes For Sale in Nevada

text1st item

text2nd item

text3rd item

Find Your Dream Home 🏡

View + Inspectors in Nevada

Find Your Dream Home 🏡

View 17 Homes For Sale in Nevada

Where do you want to live?

Key Takeaways

  • Benefit From Declining Home Prices: Because of the current market, you can save thousands by buying homes at lower prices. In Q1 of 2023, median home prices dropped to $4,36,800 from $4,79,500 in Q4 of 2022.
  • Take Advantage of Stabilizing Mortgage Rates: Considering that the 30-year fixed mortgage rates are expected to stabilize between 6% to 6.5% in 2023, you get an opportunity to secure a favorable interest rate.
  • Maintain a Healthy Credit Score: Aim for a credit score of 670 or higher, as a higher credit score can result in a lower interest rate. The median credit score for buyers in Q3 2022 was 768.
  • Plan Your Down Payment & Closing Costs: Allocate about 20% of the home’s sale price towards a down payment, and budget 2% to 5% of the total purchase price for closing costs.

7 Steps to Buying a House in Las Vegas

We have simplified the process of buying a Las Vegas house in 7 easy steps. Here’s how you can do it:

Step 1: Check Your Financial Health

One of the most crucial things to know before buying real estate is financial preparedness. Here are a few things you need to do to ensure you are financially ready to purchase a home in Las Vegas:

  1. Calculate Your Home Affordability: Use home affordability calculators to understand your financial preparedness. These calculators take into account your income, debts, location, and down payment. You’ll be able to determine your monthly mortgage payment and other costs of homeownership.
  2. Check Your Credit Score: You must check your credit score which decides the mortgage rate: higher credit score, lower interest rate. Pull your credit score reports from any of the three credit bureaus – Equifax, Experian, or TransUnion – that offer one credit report for free annually. You can also work with your bank or credit card company to access your credit report for free.
  3. Prove a Steady Employment History: Your lender will study your employment history to ensure safe investments. Lenders or mortgage brokers will check your job profile, work history, and family background. Stable employment history will help you get a home loan quickly.
  4. Review Your Debt to Income Ratio (DTI): You can calculate your DTI ratio by dividing the monthly debts by gross monthly income. Las Vegas mortgage lenders use DTI to evaluate the mortgage amount they can lend you. Most lenders consider a DTI of 36% or less to be safe.

Step 2: Plan Your Down Payment and Closing Costs

It’s time to plan your down payment after knowing how much house you can afford. A 20% down payment is typically the norm, but you can choose your own amount.

The average down payment on a house depends on the type of mortgage you opt for. Your lender may require you to purchase private mortgage insurance if you put down less money upfront. 

Nevada buyer closing costs may come as a shock for first-time buyers. Like a down payment, closing costs are out-of-pocket expenses you pay to finance, buy, and own a house. Budget 2% to 5% of the total purchase price for closing costs.

If you are looking to buy a house with cash, you can skip Steps 3 & 4.

» Know More: How to Buy a House With No Money Down?

Step 3: Get the Preapproval Letter For Your Mortgage

The mortgage pre-approval stage in the house-buying process determines how much money you can borrow to purchase a home in Los Vegas. A pre-approval letter shows you are a serious buyer working with lenders to finance a house.

Before you apply for pre-approval, you need to know the types of home loans and which one’s the best for you:

  • Conventional Mortgages: A conventional mortgage is a loan not backed by a government agency. You can get a conventional loan from private mortgage lenders in Nevada. It is subject to their guidelines, down payment requirements, credit score criteria, and interest rates.
  • FHA Loans: Federal Housing Administration grants FHA loans to borrowers having lower credit scores and higher DTI ratios. Remember, low credit scores = higher interest rates.
  • VA Loans: United States Department of Veterans Affairs offers VA loans to veterans. With no down payment and lenient credit requirements, you can even get a VA loan with bad credit.
  • USDA Loans: Low to moderate-income home buyers in rural areas can apply for USDA loans. They offer zero down payment loans, but you need to cover the USDA closing costs of 2% to 6%.

Traditionally, home buyers are helped by a real estate agent in the home-buying process. The agent scours the MLS and the local inventory to shortlist properties for you.

However, on Nevada For Sale By Owner websites, you can find FSBO homes yourself. Some FSBO listing sites like Houzeo allow you to make offers online. You can also schedule in-person showings online using Houzeo Showings.

Here are a few things you should keep in mind while shopping for homes:

  • See Homes In-person: Viewing property listings online is only the first step. You need to see the shortlisted properties in person. A personal visit will help you visualize your future in the home and also give you an idea about the neighborhood.
  • Keep Your Schedule Open: Ensure you have free time to see the newly listed properties.
  • Attend Open Houses: Explore the neighborhood of your interest. Attend open houses of listings that catch your interest.

    💡 Pro Tip: Search Properties Without a Realtor!

    On Houzeo, you can buy a house without a realtor. With Houzeo’s mobile app and website, you can sort homes by its location, mark favorites, request showings, and make offers in just a few clicks!

Step 5: Make an Offer

Work on making your offer appealing after finding a home you want to buy. Your offer should include the offer price, preapproval letter, and proof of funds for the down payment. Additionally, include contingencies and terms of purchase.

Home buying contingencies usually include a home appraisal, property inspection, etc. You can waive some contingencies or offer cash to make your offer attractive to home sellers. 

In most cases, home sellers make counteroffers. You can negotiate, accept or reject the counteroffer. 

After the seller accepts your offer, both parties will sign the purchase agreement and open an escrow account. You need to keep an escrow deposit of 1% to 2% of the purchase amount in the escrow account.

Step 6: Schedule a Home Inspection & Appraisal

With a home inspection in Nevada, you can identify any issues or defects present in the property. You need to hire a Las Vegas home inspector to inspect the property and make the report.

A home inspection report will highlight structural or mechanical issues, if any. Based on the report, you can demand repairs from the home seller. Or back out of the deal if the property has severe damages.

Your mortgage lender will require you to get the property appraised. A home appraisal will prevent them from lending an amount greater than the fair market value

Hire a professional Las Vegas home appraiser to appraise the property and come up with its current market value. The lender will lend the loan amount equal to the appraised value. In case of a shortfall, you may raise the down payment or re-negotiate the offer.

Step 7: Close the Sale

After all the contingencies are met, and you are satisfied with the final walk-through, it’s time to close the deal. . It is the last step in which you pay the closing costs, sign the paperwork, and get the keys.

Three days before closing, your lender will give you the closing disclosure. It contains all details of your mortgage, such as mortgage type, monthly payment, loan term, rate of interest, mortgage origination fees, the money you need to bring at the closing, etc.

You will attend the closing with your agent and other parties. They include the seller, their agent, and the settlement agent – a real estate attorney, escrow representative, or a title company.

This is when you will wire the closing costs and down payment to the escrow, which will then transfer it to the seller after making the necessary deductions.

Tips For Buying a House in Las Vegas

Home purchasing in Las Vegas can be an overwhelming yet exciting journey. To help you be prepared, here are some tips for buying a home in the Old Dominion:

  • Prioritize Early Saving: Calculate both one-time and recurring costs like down payment, closing costs, move-in expenses, and property taxes and start saving to buy a house.
  • Maintain a Healthy Credit Score: Your credit score affects your eligibility for home loans and the interest rates offered. Pay bills on time, keep credit cards open, and monitor your payments regularly to repair your credit score.
  • Organize Loan Paperwork: Lenders require financial reports to verify your income, assets, and debts. Keep all necessary documents, including tax returns, W-2s and 1099s, and bank statements in one place.
  • Opt for First-Time Homebuyer Programs: Explore first-time homebuyer programs offered by states and cities, such as low-interest rate loans, down payment, closing cost assistance, and more.

Bottom Line

In conclusion, with declining home prices and stabilizing mortgage rates, now is the best time to buy a house in Nevada. Plan your down payment and closing costs in advance to avoid falling short of cash. Likewise, make timely payments to ensure that your credit score stays high.

By following the actionable tips provided in this article and with careful planning, you can confidently embark on your journey to homeownership.

Find Your New Home With Houzeo

With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in Las Vegas, NV on Houzeo.

Find Your Dream Home 🏡

text 1st item

text2nd item

text3rd item

Find Your Dream Home 🏡

text View 17 Homes For Sale in Nevada

text1st item

text2nd item

text3rd item

Find Your Dream Home 🏡

View + Inspectors in Nevada

Find Your Dream Home 🏡

View 17 Homes For Sale in Nevada

Where do you want to live?

» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

FAQs on How to Buy a House in Las Vegas

What to know before buying a house in Las Vegas?

Before buying a house in Las Vegas, you must understand Nevada's housing market conditions, to know whether it is a good time to buy a house now.

How to plan to buy a house in Las Vegas?

To start planning to buy a house in Las Vegas, you need to check your financial health first, followed by planning your down payment and closing costs.

How easy is it to buy a house in Las Vegas?

It is easy to buy a house in Nevada, provided you have planned your finances, have a good credit score, and have a mortgage preapproval letter.

Where to start when buying a home in Las Vegas?

When buying a home in Las Vegas, you can start by finding out how much house you can afford.

Can I use an FHA loan to buy a foreclosed home?

Yes, you can buy a foreclosed home with an FHA loan as this loan is flexible and can be used for various types of property units, including foreclosed homes.

Want to Sell Before Buying a House in Las Vegas? Read These

How to Buy a House Las Vegas Nevada

Save $20

On Silver & up plans

Use Coupon Code:

Copied
Need help? Call us on
(844) 448-0110