NV Housing Division gives advice

The Nevada Housing Division has some important tips for anyone who thinks it's time to become a home buyer.

"Buying a home can be one of the most important decisions a person can make during his or her lifetime," said Chas Horsey, Housing Division administrator for Nevada. "For the first-time home buyer, emotions can tend to guide the way to the decision- making, rather than approaching this major investment in a carefully thought-out way."

The division is the state's self-funded mortgage banking company. It sells tax-exempt housing bonds, commonly known as mortgage revenue bonds, through Wall Street's brokerage houses. The proceeds of these bond dollars are used to finance low-cost mortgages for moderate income, first-time home buyers.

The division has more than 50 mortgage banking companies statewide that work with the Nevada Housing Division's program. It offers low-mortgage interest rates for Nevada's first-time home buyers and veterans, in addition to providing a down-payment and closing-cost assistance program. So far the division's first-time home buyer program has assisted more than 20,000 Nevada families.

Buyers need to know what kind of house will suit them and their families' lifestyle, find a patient, hardworking real estate agent and gain a sense of the process. Making an intelligent home purchase requires many practical steps. It also takes preparation.

The division recommends five basic steps as a guide, beginning with pre-qualifying for a loan. Make an appointment with a lender to determine your eligibility. Based upon that information, you can determine the purchase price of a home you can reasonably afford.

Second, take a first-time home buyer education class. A six- to eight-hour course is required by the division for its down-payment programs.

Third, locate an affordable residence suited to the buyer's needs and priced in the range the lender advises. Don't become "house poor," with all income going into the house and no disposable income for a family's quality of life. Using a Realtor during this step can take the stress out of the home search. A professional will provide listings without draining a buyer's time driving around neighborhoods that may be out of range.

In other words, focus on what you can afford and use professional resources.

Fourth, enter into a real estate purchase contract only when the previous steps have been followed and the buyer has found that perfect home. A contract to purchase will specify the legal obligations of the seller and the buyer, establishing a specific date of purchase and setting the price of the home.

This contract should allow time to complete a home inspection for an existing home, a home appraisal and loan approval. Buyers should make sure the agreement provides for an out if the home inspection is not satisfactory or other unfavorable technicalities arise.

In other words, be able to cancel your contract and have your earnest money refunded to you.

Last, apply for the loan.

If, for instance, it's a Nevada Housing Division loan, you would work through a participating lending institution. After you have applied, the lender will request that the Housing Division reserve funds for the loan at a specified interest rate.