Relocating to Las Vegas | Relocation Resources for Moving to Las Vegas

Although a newcomer to the Las Vegas area, you may not be new to the homebuying process. Even so, it’s helpful to review all the steps involved while getting familiar with Las Vegas–area resources and conditions. In today’s market it is more important than ever to actively participate in the financing process and to select the mortgage best suited for your situation. Enlisting the help of knowledgeable professionals also will help you along the way as you secure proper financing that will enable you to purchase your dream home.

Buying a home can be both a rewarding and harrowing experience. Although there is some uncertainty in the housing market, those who have done their research might realize that now is the perfect time for them to buy. The following pages will provide an overview of the financing and mortgage process to aid you in your many decisions regarding homeownership.

NAVIGATING THE FINANCING PROCESS
As you prepare to purchase a home and seek financing, it is best to first have a realistic view of all the steps involved. The financing process can take anywhere from 15 to 45 days, but typically runs about 30 days. Your agent should be involved throughout the process to help it run smoothly. The basic timeline for what will happen along the way is as follows and is covered more thoroughly in this chapter. For additional expert articles about financing and obtaining a mortgage in Las Vegas, visit www.LVRelocationGuide.org.

Step 1. You submit the completed 1003 application and any required supporting documentation to the lender.
Step 2. The lender orders an appraisal of the property, a credit report and begins verifying your employment and assets.
Step 3. The lender provides a good-faith estimate that includes closing and related costs, plus initial Truth in Lending disclosures, which must be provided by your lender within three days of first pulling your credit report by federal law.
Step 4. The lender evaluates the application and your supporting documentation, approves the loan and issues a letter of commitment.
Step 5. You sign the closing loan docu-ments, and the loan is funded.
Step 6. The lender sends its funds to an escrow account.
Step 7. All appropriate documents are recorded at the County Recorder’s Office, the seller is paid and the title to the home is yours.

HOW IS YOUR CREDIT?
Before you even begin applying for a mortgage loan, you’ll need to evaluate your credit. There are three major credit-reporting agencies in the United States that maintain records of your use of credit: Equifax^®, Experian^® and TransUnion^®.

The records that are maintained are called credit reports, and lenders will want to check these when you apply for credit. Generally, lenders also will want to know your credit score. A credit score is a number that summarizes your credit risk, based on a snapshot of your credit report at a particular point in time. A credit score helps lenders evaluate your credit report and estimate your credit risk. By reviewing this report beforehand, you can identify any issues due to fraudulent activity and work toward correcting them.

NATIONAL CREDIT-REPORTING AGENCIES
Equifax: (800) 685-1111, www.equifax.com
Experian: (888) 397-3742, www.experian.com
TransUnion: (800) 916-8800, www.transunion.com

To request a free copy of your credit report once a year, go to www.annualcreditreport.com or call (877) 322-8228. You can also inquire at www.FTC.gov.

FICO^® SCORES
The most widely used credit scores are FICO^® scores, the credit scores created by Fair Isaac Corporation. Lenders can buy FICO^® scores from all three major credit-reporting agencies. Lenders use FICO^® scores to help them make billions of credit decisions every year. Fair Isaac develops FICO^® scores based solely on information in consumer credit reports maintained at the credit-reporting agencies.

Your credit score influences the credit that is available to you as well as the terms (e.g., interest rate) that lenders offer you. It’s a vital part of your credit health. Understanding your FICO^® score can help you manage your credit health. By knowing how your credit risk is evaluated, you can take actions that may lower your credit risk—and thus raise your credit score—in time.

— WHY YOU WANT A HIGH FICO^® SCORE
According to Fair Isaac Corporation, the difference between a FICO^® score of 620 and 760 often can be tens of thousands of dollars for the life of your loan. A low score can cost you money each month or even stop you from refinancing at a rate you know other people are getting.