Tips offered on buying first home

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

The Nevada Housing Division is the state's self-funded, mortgage banking company. The division 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 homebuyers.

The division has more than 50 mortgage banking companies statewide that work with the Nevada Housing Division's program. The division offers low mortgage interest rates for Nevada's qualified first-time homebuyers and veterans in addition to providing up to $10,000 in down-payment assistance and up to an $8,000 tax rebate. So far, the division's First-Time Homebuyer Program has assisted more than 20,000 Nevada families achieve their American dream of homeownership.

Knowing what kind of house will suit your lifestyle, finding real estate agent and gaining a sense of the process may be all needed to unlock the door to your dream home.

Buying a home takes preparation and knowledge. The division recommends using these following five basic tips as a guide from beginning to end of the process of buying a home.

Step 1. Prequalify For A Loan: Select a lender, then make an appointment with the lender to determine eligibility, and based upon that information, the purchase price of the home you can reasonably afford.

Step 2. Take a First-Time Homebuyer Education Class: The division cannot emphasize how important homebuyer education is for the first-time homebuyer. It is required by the division for all of the division's down-payment programs. It is recommended that a person attend a six- to eight-hour class in order to receive full benefits of the dos and don'ts of looking for and buying a home.

Step 3. Locate An Affordable Residence: Begin looking for a residence priced in the range that the lender advises can be realistically afforded. Don't become house poor with all the income going into the house and not having any disposable income. Using the services of a real estate professional can take a lot of stress out of looking for a home; a real estate professional will have a number of listings to show without having to drive around neighborhoods looking for houses. Focus on what can be afforded; looking for a home can be fun -- enjoy the experience. Use all resources such as home builders.

Step 4. Enter Into a Real Estate Purchase Contract: Once you feel you've found that perfect home, an agreement or contract to purchase is made. This contract will specify the legal obligations of the seller and the buyer, which should establish a specific date of purchase and set the price of the home. This contract should allow for enough time to complete a home inspection or if other unfavorable technicalities arise regarding identified requests. This will protect you if the contract needs to be canceled and earnest money refunded.

Step 5. Apply For a Loan: At this point, you can formally apply for a loan. If, for instance, it's a Nevada Housing Division loan, you would work through one of their participating lenders. After you have applied, the lender will request that the Housing Division reserve funds for the loan at a specified interest rate.

For more information, call the Nevada Housing Division at 486-7220 or visit nvhousing.state.nv.us.