Before you scroll listings at midnight or fall in love with a kitchen island, there’s one part of buying a home nobody posts on Instagram: your finances. The good news is that it’s a lot less scary than it sounds.
I work with many first-time buyers here in Reno and across Northern Nevada. The buyers who have the smoothest experience all do the same five things before they ever tour a house. Here’s what they are, in plain English.
1. Check your credit
Your credit score affects whether you qualify for a loan and what interest rate you get. Pull your reports for free at annualcreditreport.com. Look for errors, pay down high card balances, and keep every payment on time.
Even a modest bump in your score can lower your monthly payment. And no, checking your own credit doesn’t hurt it.
2. Know your debt-to-income ratio
Your debt-to-income ratio, or DTI, is your monthly debt payments divided by your gross monthly income. Car loans, student loans, and credit card minimums all count.
Lenders want to see that a new house payment fits comfortably on top of what you already owe. Less debt means more buying power.
3. Plan your cash to close
Cash to close is more than the down payment. Budget for closing costs, inspections, an appraisal, and a cushion in savings for after you move in. Furnaces have a funny way of quitting the week you get the keys.
Here’s the myth-buster: you usually don’t need 20% down. Many loan programs allow much less, and VA loans can allow zero down for those who qualify.
4. Ask about down payment assistance
Nevada has real programs to help buyers. The Nevada Housing Division’s Home Is Possible program helps eligible buyers with down payment and closing costs, and there are options for teachers, first responders, and veterans. Rural buyers may also qualify for Nevada Rural Housing programs.
Many eligible buyers never apply. Ask your lender which programs fit you. Free money is my favorite kind of money.
5. Get pre-approved, then hold still
A pre-approval shows exactly what you can afford and tells sellers you’re serious. Once you have it, keep your finances steady until closing:
- Don’t buy or finance a car
- Don’t open new credit cards
- Don’t change jobs without talking to your lender
- Don’t finance furniture, no matter how good that living room set looks
After closing? Go buy all the couches you want.
Frequently asked questions
What credit score do I need to buy a house?
It depends on the loan type. FHA loans generally accept lower scores than conventional loans, and each lender sets its own overlays. A lender can tell you exactly where you stand and what would help most.
How much do I really need for a down payment?
Often much less than 20%. Many conventional and FHA loans allow low down payments, and VA loans can allow zero down for eligible veterans and service members. Assistance programs can help cover part of the gap.
What are closing costs, and how much are they?
Closing costs are fees for things like the loan, title insurance, escrow, and the appraisal. They vary by loan and price, so ask your lender for a Loan Estimate early to see real numbers.
Is pre-qualification the same as pre-approval?
No. Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval means the lender has checked your credit, income, and assets, which carries much more weight with sellers.
Who qualifies for Nevada down payment assistance?
Eligibility depends on the program, and usually includes income limits, credit minimums, and a homebuyer education course. A Nevada Housing Division approved lender can check which programs you qualify for.
How long does pre-approval last?
Most pre-approvals are good for about 60 to 90 days. If your search runs longer, your lender can refresh it with updated documents.
Should I pay off all my debt before buying?
Not necessarily. Paying down high-interest cards can help your credit and DTI, but draining your savings can hurt your cash to close. Talk to your lender before making big moves.
Ready to start?
Check your credit, know your DTI, plan your cash to close, ask about assistance, and get pre-approved. Do those five things and you’ll shop with confidence instead of crossed fingers.
Thinking about buying in Reno, Midtown, Northwest Reno, or anywhere in Northern Nevada? Call me at (775) 221-5782 to book a free buyer consult. I’ll help you build a plan and connect you with trusted local lenders.
Prefer to watch? See the video version on my YouTube channel, and follow along on Facebook for more Northern Nevada homebuying tips.
Bill McMaken, Real Estate Professional · Berkshire Hathaway HomeServices Drysdale Properties · RED#205069 · (775) 221-5782
This article is general information, not financial or lending advice. Program terms change, so confirm details with a licensed lender.
Leave a Reply