Las Vegas is as well known for emptying your pockets and causing financial trouble as it is for being a nice, quiet retreat from the pressures of everyday life. Spa culture is as big as party culture, and Las Vegas has a little something for everyone. With the city flexing its cultural muscles and low cost of living, there’s been a growing number of people in the last couple of years. For the incoming residents, there is a variety of homes from which to choose. Of course, as is the case with any city, you’ll be able to find a home that simply offers the bare basics, but what about something that’s closer to what you actually want?
The trick to house hunting is to not allow your dreams to cloud the reality of your financial future. The truth of the matter is that, in or out of Las Vegas, it is easy to get in over your head with a mortgage. Whether it’s because there’s been a change in your finances, or a change in the well-being of your family, finding yourself in trouble with your lender is never good, and can haunt your credit for years.
Successfully managing your mortgage (and limiting your number of sleepless nights) means that you’re mindful of your finances throughout the home-buying process. Mindfulness is a great principle overall, from family to work, to even your relationship with your pet. When it comes to finances, though, mindfulness will be very helpful as you’re choosing your new Las Vegas home.
The Start of Mortgage Trouble
In some cases, mortgage trouble begins with buying over budget. Stretching your dollar will happen often enough if you stay within your budget, so resisting the temptation to get the ‘better’ house is essential. When you’re purchasing a home, taxes, fees, commissions, and the gasoline that you’ll burn driving to different properties will add up. This is another reason to buy at or below your budget: you could begin drowning in your mortgage sooner than you realize, and if you buy a home during a Las Vegas summer, your cooling bill could also skyrocket.
Save yourself a great deal of stress and worry by choosing a home within your budget, and by putting down more than the standard down payment. This will require additional time, and additional savings, but this is a good way to ensure that you’ve set yourself up for an easier time in the future. A higher down payment could mean lower payments in the future. Consider also saving enough to pay the taxes on your home – a sum that could be six figures, depending on the cost of your home. This is a bold move, financially-speaking, but like a larger down payment, it can put you in a much easier position down the line in the life of your Las Vegas home mortgage. Your may see lower-than-expected monthly mortgage payments, giving you a little extra to spend or save at the end of the month. Prioritizing low prices throughout the life of your mortgage is the best way that you can protect yourself and your loved ones from a difficult mortgage situation.
While you’re saving to purchase, make sure that you’ve already spent a couple of years building your credit. With good credit, you will have more options, whether your home is in Las Vegas, Henderson, or even in Reno. After buying your home, you may find yourself running into trouble. Situations change, jobs come and go, and your may look up and notice that you’ve fallen behind in your mortgage. If this happens, don’t panic – it’s rare than anyone has to face immediate foreclosure. You do, however, need to act fast, and you should start by contacting your lending institution, and explaining your situation to them. Your lender may surprise you with a couple of different options.
Refinancing to Avoid Mortgage Problems
Refinancing is offered by many, if not most, lenders, as a solution to your difficulties. If your mortgage rolls over to another bank, that could even better for you: they will have their own rates, and their own processes, possibly allowing you to get an ever lower interest rate than your original lender may have available to you. Other arrangements can be made by your lender as they see fit, too. There are legal protections for homeowners in this situation, too. Depending on your state, you may have up to three years to make your back payments, including fees and unpaid taxes. Yet another option is selling your home, something that is completely feasible, but absolutely necessitates the assistance of a real estate professional.
Believe it or not, banks would prefer that you stay in your Las Vegas home as much as you do. If you absolutely cannot meet your mortgage obligations, and your lender won’t help, the next step is foreclosure. Foreclosure happens when the bank takes possession of your home to cover the revenue lost from your missing mortgage payments. For the bank, though, repossessing the home is just step one of a long and tedious process of selling the home. The bank has to hire an appraiser, contractors, and a local real estate agent – money the bank doesn’t want to spend. Before your home is repossessed, however, remember that your state allows a certain amount of time for you to get the money to buy your home back.
You can spare yourself a lot of trouble, not to mention the bank, by making your mortgage payments in full and on-time every month. Difficult financial situations may also be helped by a real estate agent. Few members of the general public are aware that some real estate agents are able to be a go-between for you and your lender to help your home’s sticky financial situation. There are even local non-profit organizations whose mission is to offer legal and financial assistance to those in danger of losing their homes. Avoiding foreclosure is always the best idea in Las Vegas, but making sure that you are aware of your options is infinitely more important. Whether you’re ready to buy or sell your home, even if your home has been foreclosed, contact your local Las Vegas real estate agent.