About Las Vegas, Nevada first-time homeowner class and counseling
All Las Vegas, Nevada first-time homeowners who use a government program must attend a first-time home buyer class. Classes are sponsored by an approved non-profit organization like Neighborhood Housing Services of Southern Nevada or Consumer Credit Counseling Service.
The object is to teach how to prepare to become first-time homeowners. How to analyze your financial situation, cut costs and improve the credit score.
Early registration is recommended as these classes fill up quickly and there is usually a waiting list. At the conclusion of the class, participants will be given a certificate of completion which is good for one year.
What happens after the Nevada first time homeowner class?
Nevada first-time homeowners have to do one on one counseling with a Certified Housing Counselor. We can’t emphasize enough the usefulness of these classes and counseling sessions.
Different categories of Nevada first-time homeowner:
After the counseling session, the consultant will categorize you as:
The first-time homeowner has to provide the following and meet the criteria below:
- This applicant has been pre-approved by a participating lender and is working with a certified Realtor (we are certified).
- No bills in collections and meets the 31%-43% front end and back end criteria.
- Doesn’t have any insufficient funds on the bank statements for the last 4 months. And can prove $1000 in the bank account for the last two months in addition to two months mortgage payments. Four months of pay stubs have to be provided by the applicant.
- The applicant must have worked and earned a consistent income for the past 2 years and be able to prove it with W-2 form.
- Provide the most recent credit report with a credit score (FICO score) of at least 620.
- Obviously has completed the first-time home buyer class, have the certificate and attended at least one counseling session.
- Has a fully executed purchase contract for a home or condo in which appraises for the purchase price.
- All conditions have been met by the certified real estate agent or Realtor, mortgage lender and the applicant.
B: Near mortgage ready:
The prospective first-time homeowner has attended the home buyer class and has the certificate in addition to attending at least one counseling session and has prepared a plan of action.
The client has NOT satisfied one or more of the following and is working to fix it:
- Paying all accounts that are in the collection, except for medical bills in some cases.
- Has failed to get pre-approved through a participating lender.
- FICO credit score is below 620.
- Has insufficient funds charges on the bank statements in the past 4 months.
- Has not seasoned $1000 for down payment for at least 60 days or has failed to save for 2 months of mortgage reserve.
- The applicant has not worked in the same line of work for two years but can show stable income and employment.
Not mortgage ready:
After meeting with the certified housing counselor and reviewing documents it becomes clear that the applicant can’t satisfy one or more of above conditions.
For example, the applicant may have bad credit or can’t meet the reserves. In that case, the housing counselor will help to prepare an action plan or road map to becoming mortgage ready and then, a first time home owner.
We think that all first-time home buyers should attend a Las Vegas, Nevada first time homeowner class because they are useful for all, even those who do not need any assistance.