After months of searching ad listings and real estate websites, you’ve finally found the perfect dream home in Reno, NV. The home search took a while, but now that you’ve found a great place within your budget, you can’t let anyone else get hold of your amazing find. How can you make sure that these homeowners accept your offer on this dream house?
Reno’s housing market is heating up again, which means homes are more competitive for buyers. However, with some property buying savvy and an understanding of the home buying process, you can make sure that dream home is yours. Follow this timeline and checklist to secure your dream home in Northern Nevada.
What Does the Homebuying Process Entail in Reno?
Done right, buying a home is a lengthy and extensive process. There are a lot of milestones you need to meet if you want to get your dream home – and at a dream mortgage rate. Generally, I advise my clients to stick to the following 7 steps:
- Get pre-approved for a mortgage
- Make a realistic offer
- Negotiate the closing sale
- Lock in your mortgage rate
- Have a home inspection
- Find a home insurance provider
- Perform the final walkthrough
Each of these steps is important in their own unique way, and each one has its own checklist that every Reno homebuyer should commit to.
The Reno Home Buyer’s Checklist
Without further ado, here’s what every home buyer should do to make their dream home a reality.
1. Get Pre-Approved for a Mortgage
Mortgage pre-approval is essential to having your offer accepted by the current owners of your dream home. Pre-approval means you likely have the funds and credit score to secure an actual mortgage on the property, and that the offer you’re putting down is trustworthy.
Getting pre-approved is its own separate process from buying a home, but it shouldn’t take too long. Put these four things on your pre-approval checklist:
- Ask for lender recommendations from friends, family, and your local realtor (Hint: Caroline Mathes).
- Calculate a downpayment you can commit to, and try to commit to a 20% downpayment.
- Obtain quotes from at least three lenders to secure the best rate and a trustworthy pre-approval.
- Research local mortgage assistance programs.
2. Make a Realistic Offer
After seeing the property in person you need to consider a couple of different factors before writing a convincing offer letter. For example, you want to consider the price of other similar homes in the neighborhood, whether the home has had any renovations or damages, and how competitive the market is. In a more competitive housing market, a higher offer might be necessary to win your dream property.
Make sure you do the following as part of your offer strategy:
- Make an intelligent bid, perhaps with the consultation of The Mathes Team.
- Consider negotiating for a home warranty to cover a year’s worth of repairs after closing.
- Negotiate the closing date if you can and if the current owners want to move quickly.
- Write an offer letter that highlights who you are as a buyer. Talk about your family, your life in Reno, or anything to add a human element.
3. Negotiate the Closing Sale
If you’ve written a convincing offer letter and secured the home, your next step is to close on the sale and sign the contract. This part can get tricky because you need to know which demands are essential, and what you will accommodate from the sellers.
These considerations go into the following checklist:
- Know what your price limit is for the property.
- Identify your must-haves.
- Do you need sellers to help with your closing costs?
- Consider hiring a realtor certified in property negotiations.
4. Lock in Your Mortgage Rate
With a final selling price locked in and a contract ready to sign, your next step is to turn that pre-approval into a home mortgage. Some pre-approvals will turn into rates you weren’t prepared for, which is why it’s good to consult multiple lenders in case one turns out to be less-than-trustworthy.
No mortgage negotiation is complete without the following:
- Know what rate is too high for you. A mortgage calculator can help you determine what your monthly payment will be.
- Ask for an itemized list of closing costs from your mortgage lender. Many lenders have additional one-time fees, but it’s best to know what you’re paying for and at what price.
- Read the fine print.
- Lock in your interest rate earlier rather than later. If your rate is locked in 30-45 days in advance of the close, you’re in good shape!
- Have a realtor, lawyer, or mortgage negotiator look over, review and ask questions about your documents before you sign them.
5. Obtain a Final Home Inspection
Of course, a dream home could end up being a nightmare if certain problems were swept under the rug. Before you close on the sale, you want to be sure there aren’t hidden damages, infestations, or other problems lurking beneath the floorboards.
The home inspection might turn up problems you’re willing to fix, as well as problems out of your control. A good home inspection checklist includes the following:
- Find a qualified inspector who is both accredited and has many inspections under their belt. Plan on a cost between $300-$750, unless the current owners are willing to pay for it.
- Request a detailed report in advance, including estimates for any fixes the inspector suggests.
- Attend the inspection so that you can ask questions as necessary and provide an extra set of eyes. This will also soothe any worries you have about the house.
- Consider additional inspections, especially if recommended by the realtor or the inspector.
6. Home Appraisal and Home Insurance Coverage
To obtain insurance, you need to have the property’s value appraised accordingly since the home insurance cost is based on the property value.
When you know the home is yours, put the following on your to-do list:
- Get an appraisal. This will be initiated by your lender, and once completed, you will be able to use the appraised value to help you get insurance quotes.
- Be sure your Realtor provides a list of comparable properties to the appraiser, normally this will be the same list you reviewed when you made your offer. This will help you know whether the home value matches those of similar houses, including any renovations and damages.
- Shop for home insurance. Different insurance companies usually offer the same coverage, so take note of both the insurance price and its rating.
7. Perform the Final Walkthrough
At this point, the home is basically yours! The final walkthrough is just a way of triple checking that you’ve covered your bases, found the best rates, and that your dream home is still a dream – and a reality.
Your final walkthrough should check all of these items off:
- All appliances work.
- All faucets and toilets have running water, including outdoors.
- All outlets conduct electricity.
- The smoke detectors and carbon monoxide detectors work properly.
- The heat and A/C are both working well.
- There are no signs of water damage, mold, or pests.
If your final walkthrough turns up anything extra, your Realtor will negotiate repairs or closing credits. Then, sign the contract, and the keys to your new home are yours!
At any point in this process, a real estate agent can help make sure you’re getting the best rates, securing the best negotiations, and using the best local lenders and title company. If you’re moving to a new neighborhood in Northern Nevada, the Caroline Mathes team is here as your home buying resource.
Let’s tackle your homebuying to-do list together – reach out today!