Many homebuyers lack knowledge in the lending process

According to a May CNN Money article, nearly one-third of current and prospective homeowners surveyed by Zillow could not correctly answer basic questions about financing, with 34 percent not knowing the term “annual percentage rate” and 31 percent incorrectly believing that they are unable to obtain a mortgage with a less than 5 percent down payment.

Confusion continued when it came to questions about buying a home after a short sale or foreclosure, with nearly one-third of homeowners unaware that they may not have to wait seven years before they can buy a home again.

Las Vegan Rick Piette of Premier Mortgage Lending said he and the staff answer these questions every day.

“It is imperative that potential homebuyers fully understand the home-buying and lending process along with their many options before they even begin their home search. Buying a home is often the biggest purchase in your life, and it’s important to understand everything before signing on the dotted line,” Piette said.

“The CNN article demonstrates the need for home-buyer education and why mortgage prequalification is important. During the prequalification process, lenders can help buyers understand the process, terms and many options, and develop a realistic price point in the process,” Piette said.

He said Premier Mortgage Lending offers this service free of charge.

“The truth is that a 5 percent down payment is not necessarily a requirement because loans insured by the Federal Housing Administration can require as little as 3.5 percent. Plus, lending programs exist that can dramatically cut the wait time to buy a home after a foreclosure or short sale, including Premier Mortgage Lending’s Another Chance Nevada program where there’s no wait time at all.”

Another Chance Nevada connects individuals who have experienced a short sale or foreclosure with private and institutional portfolio lenders who offer 15- or 30-year, fixed-rate loans at interest rates that are typically higher than traditional mortgage rates.

Full-documentation guidelines are followed and at least a 20 percent down payment is required. The down payment can come from personal funds or can be obtained as a gift from family members. Borrowers may close within 30 days from the time of loan approval, and may refinance the loan at any time without penalty.

An Another Chance loan may be used on the purchase of a resale or a new home. The lender is working with Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Richmond American Homes, Ryland Homes and William Lyon Homes.

“Many who are waiting along the sidelines to buy a home are becoming concerned about their future ability to buy a home because Las Vegas Valley housing prices have steadily increased during the past year. This is why hundreds of Southern Nevadans have chosen Another Chance Nevada, to help make sure that they don’t get priced out of the market,” he said.

The Greater Las Vegas Association of Realtors reported that the median sales price of single-family houses increased 30.6 percent between April 2012 and 2013, while the median prices of condos and townhomes went up 41.9 percent during the same time frame.

“Hundreds of Southern Nevadans have turned to Premier Mortgage Lending for our complimentary prequalification service and to find out if they, too, can buy a home at today’s prices. As a full-service lender, we can help guide them to many different mortgage products ranging from traditional loans to the private and portfolio lenders of Another Chance Nevada. With this information, they can make an educated decision as to if now is a good time to buy a home of their own.”

For more information, call Premier Mortgage at 702-485-6600 or visit www.AnotherChanceNevada.com.