Credit Qualifications for First Time Homebuyers in Clark County, Nevada
First time homebuyers are obligated to meet certain requirements concerning the down payment, debt-to-income ratio, and credit scores. Applications from first time Nevada home buyers are scrutinized quite closely due to the potential buyer’s enormous financial obligation. Therefore, money lenders want to ensure that the buyer’s financial history and credit rating both positively indicate that they can handle the mortgage responsibly. Several first time buyers seek loans insured by the FHA (Federal Housing Administration) due to the agency’s guidelines and flexible lending policies. Use the services of a professional Nevada real estate agent for best home buying experience possible. Here are a few key aspects of qualifying for credit.
What’s Your Credit Score?
In general, the first thing real estate agents in Clark County tell their clients, especially if their a first time buyer, is to check their credit score before even applying for a home loan. The higher the score - the better. While the numbers are always changing, the FHA will usually guarantee a loan for a first time buyer with a score as low as 500 in some cases. However, these guidelines are always subject to change.
Employment and Steady Income
First time home buyers in Clark County are obligated to show a steady employment history and an adequate flow of income in order to cover their anticipated mortgage payments along with any outstanding debt obligations and general household expenses. Most lenders prefer that the applicants are employed at the same company for a minimum of two years prior to applying.
The Down Payment
Before the housing bust began back in 2007, 100% loan financing was available to virtually everyone if they met the basic criteria. However, by July 2010, the housing market was overwhelmed with foreclosures from homeowners who purchased homes they couldn’t afford. And so, that led money lenders to require down payments once again, typically between 10% - 20%. However, FHA-based loans were still available with very little down – comparatively speaking.
Every first time home buyer should talk extensively with their Nevada real estate agent to go over every detail of the home buying process.
Cities for Clark County
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