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"LAS VEGAS REAL ESTATE AGENTS NEED TO USE YOUR LAS VEGAS MLS PRINT-OUTS TO AVOID
LOAN CHALLENGES LATER"
Las Vegas loan pre-qualifications can be very tight today. Quite often we find borrowers pre-approved with debt to income ratios that are high. What seem like minor challenges in the loan process can wind up adversely affecting the transaction.
When a Las Vegas lender pre-qualifies your buyers, before the buyer has picked out their actual home, they usually do so based on averages for property taxes, home owner's insurance and HOA dues.
For example, let's say your Las Vegas home buyer calls and asks to be pre-approved to $175,000. The lender may estimate $165 per month for taxes, $40 for homeowner's insurance and $50 for HOA dues.
The lender runs the Las Vegas home buyer's personal financial information and determines his debt to income ratio is 48% but he still qualifies. He is pre-approved, letter in hand.
Now you take him out looking at Las Vegas homes. He buys a home for $172,000. He goes to contract.
The Las Vegas lender later finds out thru the loan process that the taxes on this home are $250/mo. His insurance is $80/mo. The HOA dues in this development are $150/mo.
This is $215 more per month than the buyer was pre-approved for. His debt to income ratio is now 54% and he no longer is eligible for the same loan.
This often results in the Las Vegas home buyer getting a call from the lender saying some recurring debts need to be paid, the rate needs to be bought down, or more money put down. Quite often, this is later in the transaction.
How does your Las Vegas home buyer avoid this? When you are showing homes look closely at the property taxes and HOA dues. If they seem high for this price of a home, and the buyer loves the home, call the pre-qualifying lender, send him the Las Vegas MLS printout and ask him to make sure the loan still works with those numbers.
If its too late for that, when you send in the contract on the property, send in the Las Vegas MLS print out as well and ask to review the borrower's Good Faith Estimate as soon as possible.
Look for the section where the payment, taxes, HOA fees and insurance is disclosed. Look closely at the property taxes, insurance and HOA dues. If they are wrong, even slightly, notify the lender immediately.
These simple pro-active steps, right on your Las Vegas MLS sheets, can save major challenges later on.
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If you are interested in relocating to Las Vegas or would like information on Las Vegas real estate, please email me, Bob Ratliff with RE/MAX CENTRAL LAS VEGAS, at rratliff@remax.net, or call me at 702-807-5528. I look forward to hearing from you!
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