How a Cash-Out Refinance Can Eliminate Credit Card Debt
If you’re like many Americans, credit card balances have crept up over the past few years. With rising interest rates, carrying balances can feel like a never-ending cycle—minimum payments barely make a dent, and interest charges eat away at your paycheck.
But if you own a home, there’s a potential solution: a cash-out refinance. This strategy allows you to use your home’s equity to pay off high-interest debt, lower your monthly payments, and take control of your finances.
Here’s how it works—and why it might be the reset you need.
What Is a Cash-Out Refinance?
A cash-out refinance replaces your current mortgage with a new, larger loan. The difference between your old loan balance and the new loan is paid out to you in cash. You can then use that money however you’d like—many homeowners use it to pay off credit cards, student loans, or medical debt.
For example:
- Current mortgage balance: $250,000
- New mortgage balance: $300,000
- Cash to you: $50,000 (before closing costs)
That $50,000 could be used to wipe out high-interest credit cards in one move.
Why Credit Card Debt Is So Costly
Credit card debt is one of the most expensive types of borrowing because:
- Average rates exceed 20%in today’s market.
- Making only minimum payments can keep you in debt for decades.
- Interest compounds quickly, so balances grow even if you’re making payments.
Compare that to a mortgage rate—even at 6–7%, it’s still dramatically lower than what you’re paying on most credit cards.
How a Cash-Out Refinance Helps
A cash-out refinance can give you financial breathing room because:
- You Swap High Interest for Lower Interest
Instead of paying 20%+ on multiple cards, you consolidate that debt into your mortgage at a much lower rate. - You Simplify Payments
One mortgage payment is easier to manage than juggling five or six credit card bills every month. - You Improve Cash Flow
Because your interest rate is lower, your monthly payment may drop significantly—even after refinancing. - You Can Rebuild Your Credit
Paying off revolving credit balances reduces your credit utilization ratio, which is a big factor in your credit score.
A Simple Example
Imagine you have $40,000 in credit card debt with an average interest rate of 22%. Your minimum payments might be over $1,200 per month, and most of that is going toward interest, not principal.
Now imagine rolling that $40,000 into a cash-out refinance at 6.5%. Your monthly payment on that debt could shrink to less than half of what you’re paying now—plus you’re paying down principal right away, not just interest.
That kind of change can free up money for savings, emergencies, or simply breathing easier each month.
Things to Consider Before Refinancing
While a cash-out refinance can be a powerful tool, it’s not right for everyone. Here are a few things to weigh:
- Closing Costs:Like any refinance, you’ll pay closing costs, which are usually 2–5% of the loan amount.
- New Loan Term:Extending your loan term can lower your payment, but it also means paying interest over a longer period.
- Discipline Matters:A cash-out refinance won’t help long term if you run credit cards back up again. It’s best paired with a plan to stay out of debt.
- Equity Requirements:You’ll need enough equity in your home—typically at least 20%—to qualify.
Is It Worth It?
Here’s the bottom line: if you’re drowning in credit card debt, a cash-out refinance could be a game-changer because it lets you:
- Consolidate debt into one manageable payment
- Save thousands in interest
- Improve your financial stability
But the best way to know is to run the numbers for your specific situation.
Final Thoughts
Credit card debt doesn’t have to control your life. With home equity on your side, a cash-out refinance can be the tool that finally helps you break free from high-interest balances and move toward financial freedom.
If you’re ready to see whether this strategy makes sense for you, connect withThe Derek Parent Team. We’ll review your mortgage, run scenarios based on today’s rates, and help you decide if a cash-out refinance can eliminate your credit card debt once and for all.
Will Mortgage Rates Drop in 2025? What Experts Predict
With economic uncertainty and inflation concerns dominating headlines, many prospective homebuyers—and even current owners—are asking: “Will mortgage rates drop in 2025?”It’s a smart question, and while nobody can predict the future with complete accuracy, expert forecasts can offer useful direction.
Here’s a clear, accessible look at what leading authorities expect — and how you can prepare, whether rates fall or stay steady.
What Are the Experts Forecasting for Mortgage Rates?
Fannie Mae
Fannie Mae adjusted its outlook recently. It now expects the average 30‑year fixed mortgage rate to finish 2025 at about 6.5%, a slight upward revision from the previous 6.4%, before easing to 6.1% in 2026.MPA Magazine+1
Mortgage Bankers Association & Other Trade Groups
Industry groups like the MBA and others anticipate rates holding mostly steady through the year. For instance, MBA projects rates will average around 6.8% in Q3 2025and end the year near 6.7%.Forbes
Broader Trend from Multiple Forecasters
Analysts including Fannie Mae, Freddie Mac, the National Association of Realtors, and others forecast that mortgage rates will linger in the mid‑6%range through 2025—declining incrementally but not dramatically.MarketWatch+5Investopedia+5Norada Real Estate+5
Recent Market Data
As of August 2025, the average 30‑year mortgage rate sits at 6.58%, its lowest in nearly ten months. Even so, experts stress that affordability remains a challenge and any rate improvement is expected to be modest.Investopedia+3AP News+3Reuters+3
Why Rates Likely Won’t Fall Sharply — Yet
Fed Rate Cuts ≠ Instant Mortgage Relief
Even if the Federal Reserve lowers benchmark interest rates (which many expect in September), mortgage rates don’t automatically follow. Trends in Treasury yields and bond markets, which mortgage pricing depends on, may not shift quickly enough to trigger dramatic declines.midflorida.com+15Investopedia+15Coosa Valley Credit Union+15
Inflation & the Fed’s Balancing Act
The Fed faces a tightrope: it needs to weigh inflation, jobs, and growth. While markets are hoping for a move in September, sticky inflation may delay or temper rate reductions.PoliticoKiplinger
Bond Market Volatility
Ultimately, mortgage rates track bond yields. Investor reactions to inflation, tariffs, or geopolitical instability can swing those yields—and thus mortgage rates—without direct policy changes.CBS NewsThe Mortgage Reports
What Buyers Can Take Away from These Forecasts
1. Expect Modest Declines Only
If rates do fall, we’re likely looking at a gradual easing into maybe the low‑6%range, rather than a return to the 3–4% era.MarketWatchNorada Real Estate
2. Opportunity to Refinance Later
If you’re buying now, you can always refinance if rates dip meaningfully down the road. In other words: buy the house today, date the rate.Investopedia+2MarketWatch+2
3. Don’t Let Timing Rule You
If you find a home you love and you’re financially prepped, waiting solely for rates may cost you more later—especially if prices keep rising.Investopedia
Final Thoughts
Here's what we can say with some confidence:
| Scenario | Likely Outcome |
| Rates will drop swiftly | Unlikely—experts see only modest movement. |
| Rates will stay in mid-6% range | Most probable—some forecasts expect 6.4–6.5% by year-end. |
| A sharp drop into low-6s or 5s | Possible down the road if inflation cools, but not expected soon. |
If you're ready to explore your options or need help projecting how mortgage rates may affect your buying power, the Derek Parent Team is here for you. We specialize in guiding Las Vegas buyers through uncertain markets, helping you lock in smart financing today with the flexibility to refinance later if needed.
Let’s chat about your situation and run the numbers—because the best decision is always the informed one.
Relocating to Las Vegas: Complete Guide for New Homebuyers
Las Vegas is famous for its nightlife, entertainment, and energy, but it’s also one of the fastest-growing cities in the country for new residents. Every year, thousands of people relocate here for job opportunities, affordable living, and sunshine nearly 300 days a year.
If you’re considering a move to Las Vegas, you’re not alone—and having the right plan will make the transition smoother. In this guide, we’ll cover everything you need to know about relocating to Las Vegas as a new homebuyer.
Why Move to Las Vegas?
People relocate to Las Vegas for many reasons, and it’s not just about the Strip. Here’s why the city has become such a hot spot:
- No State Income Tax:Nevada is one of the most tax-friendly states in the U.S.
- Affordable Housing (Compared to Other Major Cities):While prices have risen, homes in Las Vegas are still more affordable than in Los Angeles, San Francisco, or Phoenix.
- Diverse Job Market:Beyond hospitality, industries like healthcare, tech, and logistics are growing.
- Year-Round Sunshine:With warm weather and outdoor activities, the quality of life is high.
- Variety of Communities:From suburban family-friendly neighborhoods to luxury high-rises on the Strip, there’s something for everyone.
Step 1: Decide Where to Live
Las Vegas isn’t one-size-fits-all. Choosing the right neighborhood will depend on your lifestyle, commute, and budget.
Popular Areas for New Homebuyers
- Summerlin:Master-planned luxury, great schools, and access to Red Rock Canyon.
- Henderson:Family-friendly with parks, schools, and Lake Mead nearby.
- North Las Vegas:Affordable homes and lots of new development.
- Downtown & Arts District:Perfect for professionals and those who love an urban vibe.
- High-Rises on the Strip:Great for investors or buyers seeking resort-style living.
Because each area has its own personality, it’s worth exploring different neighborhoods before deciding where to buy.
Step 2: Understand the Las Vegas Housing Market
The Las Vegas market can move quickly, so being prepared is essential.
- Median Home Prices:They are generally lower than coastal cities, but prices have been rising steadily.
- New Construction:Builders are offering incentives like closing cost credits, especially in Henderson and North Las Vegas.
- High-Rise Condos:These remain popular among investors and second-home buyers.
So whether you’re looking for a starter home, new build, or luxury property, there are options for every budget.
Step 3: Get Pre-Approved Before You Shop
If you’re relocating, one of the smartest moves you can make is getting pre-approvedfor a mortgage before you start house hunting.
- Why It Matters:Pre-approval shows sellers you’re serious, and it helps you understand your budget.
- Local Expertise:Working with a Las Vegas-based lender likeThe Derek Parent Teamensures you have someone who understands local market conditions.
- Loan Options:First-time buyers, veterans, and even investors can qualify for loan programs with low down payments or special benefits.
Because the market is competitive, pre-approval can give you an edge when making an offer.
Step 4: Plan for Moving Logistics
Relocating isn’t just about finding the right house—it’s also about making the move smooth.
- Hiring Movers:Decide whether you want a full-service mover or a DIY truck rental.
- Timing Your Move:Avoid peak summer heat if possible; spring and fall are easier months to relocate.
- Utilities and Services:Set up water, power, internet, and trash collection ahead of time so your home is ready when you arrive.
- Driver’s License & Registration:Nevada requires new residents to update their license and car registration within 30 days.
Step 5: Adjusting to Life in Las Vegas
Las Vegas offers more than just nightlife. Here’s what new residents quickly learn:
- Entertainment & Dining:From world-class shows to local food scenes, you’ll never run out of options.
- Outdoor Adventures:Red Rock Canyon, Lake Mead, and Mount Charleston are all within driving distance.
- Community Life:Many neighborhoods host farmers markets, festivals, and fitness events, making it easy to meet people.
- Weather:Summers are hot, but the dry climate and mild winters balance it out.
Because Las Vegas blends city living with outdoor beauty, it’s a place where you can shape the lifestyle you want.
Tips for New Homebuyers Relocating to Las Vegas
- Visit Before You Buy:If possible, spend time exploring neighborhoods to see where you feel most comfortable.
- Work With Local Experts:Realtors and lenders who know the market can save you time and money.
- Think About the Commute:Traffic is lighter than in many cities, but location still matters if you work near the Strip or Downtown.
- Budget for HOAs:Many communities in Las Vegas have homeowners’ associations, so factor those fees into your monthly costs.
- Stay Flexible:The perfect home may not check every box, but focus on your top priorities.
Final Thoughts
Relocating to Las Vegas is exciting because the city offers a mix of affordability, opportunity, and lifestyle you won’t find anywhere else. From Henderson’s family-friendly communities to Summerlin’s master-planned luxury, there’s a neighborhood that will feel like home.
The key is preparation: understanding the market, securing financing, and working with local experts who can guide you every step of the way.
If you’re ready to make Las Vegas your new home, reach out to The Derek Parent Team. With decades of experience in the local mortgage industry, we’ll help you secure the right loan and make your relocation as smooth as possible.
What Is a Non-QM Loan? Mortgage Options for Self-Employed & Investors
If you’re self-employed, a real estate investor, or someone with unique income sources, you may have run into challenges getting approved for a traditional mortgage. That’s because most loans fall under Qualified Mortgage (QM)guidelines, which have strict requirements around income verification, debt-to-income ratios, and credit history.
But what if your income doesn’t fit into those boxes? That’s where Non-QM loanscome in.
What Is a Non-QM Loan?
A Non-Qualified Mortgage (Non-QM)is any home loan that doesn’t meet the standard guidelines set by the Consumer Financial Protection Bureau (CFPB) for Qualified Mortgages.
That doesn’t mean they’re risky or bad—it simply means lenders use alternative methods to verify income and assess risk.
Non-QM loans are designed for borrowers who are financially strong but don’t meet traditional documentation rules.
Who Are Non-QM Loans Designed For?
Non-QM loans are popular with:
- Self-Employed Borrowers:Instead of W-2s, lenders may use bank statements, 1099s, or profit-and-loss statements to verify income.
- Real Estate Investors:Programs like DSCR loans (Debt Service Coverage Ratio)allow approval based on rental income instead of personal income.
- High-Net-Worth Individuals:Asset depletion loans let you qualify by using your investment or savings accounts.
- Borrowers with Credit Challenges:Some Non-QM lenders work with recent credit events like bankruptcy or foreclosure, provided you show financial stability.
Benefits of a Non-QM Loan
- Flexible Income Verification
Instead of W-2s, you can use alternative documents like bank statements or rental income. - Access to More Loan Programs
DSCR, bank statement, and interest-only loans give borrowers creative options that traditional lenders don’t offer. - Opportunity to Scale Investments
Investors can leverage Non-QM programs to grow rental portfolios without the limitations of conventional underwriting. - Credit Flexibility
You may qualify even if you’ve had a credit event in the recent past.
Things to Consider
While Non-QM loans can be a powerful tool, it’s important to understand the trade-offs:
- Higher Interest Rates:Non-QM loans often come with slightly higher rates than conventional mortgages.
- Larger Down Payments:Some programs may require 10–20% down or more, depending on the loan type.
- Lender Variety:Not all lenders offer Non-QM loans, so working with an experienced mortgage professional matters.
The Las Vegas Factor
In a city like Las Vegas, Non-QM loans are especially valuable. With so many self-employed professionals, entrepreneurs, and real estate investors, these programs allow buyers to qualify who might otherwise be turned away by traditional banks.
Whether you’re an Uber driver with fluctuating income, a casino worker earning tips, or an investor buying a short-term rental property, Non-QM programs can provide the financing you need.
Final Thoughts
Non-QM loans open the door for self-employed buyers, investors, and anyone who doesn’t fit the traditional lending mold. They’re flexible, creative, and designed for real-world borrowers.
If you’re in Las Vegas and want to explore your mortgage options, reach out toThe Derek Parent Team. With years of experience in Non-QM lending, we’ll help you find the right program—whether it’s a bank statement loan, DSCR loan, or another Non-QM option.
Is Now the Best Time to Buy a High-Rise in Las Vegas?
Las Vegas is known for its luxury condos, Strip views, and vibrant real estate market—and high-rise living remains one of the most attractive lifestyle and investment choices in the city.
But with interest rates fluctuating, home prices adjusting, and inventory levels shifting, many buyers are asking: “Is now really the best time to buy a high-rise in Las Vegas?”
The answer depends on your goals, but let’s break it down.
Why High-Rises Are So Appealing in Las Vegas
High-rise living isn’t just about having floor-to-ceiling views of the Strip—it’s about lifestyle and long-term value. Buyers and investors are drawn to high-rises because:
- Location:You’re close to world-class dining, entertainment, and business centers.
- Amenities:Pools, gyms, valet, concierge, and 24-hour security make it turnkey living.
- Investment Potential:High-rises attract tourists, executives, and second-home buyers.
- Prestige:Towers like Waldorf Astoria, Veer, and Panorama offer exclusivity you won’t find in traditional neighborhoods.
So whether you’re buying for yourself or as an investment, the appeal is undeniable.
Current Market Conditions
The high-rise market in Las Vegas has its own rhythm compared to traditional single-family homes. Here’s what’s happening now:
- Moderating Prices:Prices have leveled after years of strong appreciation, which can mean opportunity for buyers.
- Stable Demand:Professionals, retirees, and investors still see value in condo living, especially in prime locations.
- Interest Rates:While mortgage rates remain higher than the lows of a few years ago, many experts predict modest declines in 2025 and beyond. That means buying now could let you refinance later.
- Inventory:There are more choices today than during peak demand cycles, giving buyers leverage to negotiate.
The Case for Buying Now
There are several reasons why buying a high-rise today could be a smart move:
- Lock in Today’s Price
If rates drop next year, buyer demand will spike again. More buyers = more competition = higher prices. Acting now can help you secure a unit before that rush. - Refinance Potential
You can always refinance if rates go down, but you can’t go back in time and buy the same condo at a lower price once appreciation kicks in. - Lifestyle Benefits Immediately
Beyond numbers, buying now means you get to enjoy the lifestyle right away—Strip views, concierge service, and lock-and-leave convenience. - Negotiation Leverage
With more inventory, sellers may be more open to concessions like closing cost credits or furniture packages.
The Case for Waiting
To be fair, there are reasons some buyers choose to wait:
- Rates Could Improve:A 0.5–1% drop in interest rates could save you hundreds per month.
- Economic Uncertainty:If the broader economy slows, prices could soften further in some towers.
- HOA Considerations:Some buyers like to take extra time to research HOA reserves, rules, and fees before jumping in.
So if your timeline is flexible and you’re not in a rush, waiting to see how the market unfolds may be worth considering.
What Buyers Should Really Focus On
Instead of just asking “when,” the better question might be: “What am I buying for?”
- If it’s a lifestyle purchase:The sooner you buy, the sooner you enjoy it.
- If it’s an investment:Look at rental demand, HOA fees, and long-term appreciation potential more than short-term rate swings.
- If it’s about timing the market:Remember that perfect timing rarely exists. Most successful buyers focus on the long-term, not chasing the exact bottom.
Expert Tip: Financing High-Rises is Different
Not all lenders are comfortable with condo financing—especially in high-rise towers with stricter guidelines. That’s where experience matters.
AtThe Derek Parent Team, we’ve specialized in high-rise financing for decades. We were the in-house lender at Veer Towers, and we’ve helped buyers close loans in nearly every luxury tower in Las Vegas. We know which properties qualify for conventional loans, which require jumbo financing, and how to navigate complex HOA requirements.
Final Thoughts
So, is now the best time to buy a high-rise in Las Vegas?
- Yes, if:You want to secure today’s prices, enjoy the lifestyle now, and take advantage of future refinancing opportunities.
- Maybe wait, if:You’re strictly focused on rates and are comfortable delaying your purchase for potential savings.
The truth is, high-rise living in Las Vegas has long-term appeal no matter what rates do in the short term. The key is aligning your purchase with your personal goals, lifestyle, and budget.
If you’re considering a high-rise purchase, let’s talk. The Derek Parent Team can walk you through financing options, tower comparisons, and strategies to make your investment as strong as possible.
Summerlin vs. Henderson: Where Should You Buy a Home?
When it comes to buying a home in Las Vegas, two communities often stand out: Hendersonand Summerlin. Both offer desirable neighborhoods, quality schools, and access to great amenities, but they cater to slightly different lifestyles.
So, if you’re a homebuyer wondering which is the better fit, let’s break down the differences between Henderson and Summerlin to help you decide.
Henderson: Suburban Comfort Meets Convenience
Henderson consistently ranks as one of the safest cities in America, and it’s a favorite for families and retirees because it offers a true suburban feel without being far from the action of the Strip.
Why Buyers Choose Henderson
- Family-Friendly Atmosphere:With top-rated schools, parks, and sports programs, Henderson is one of the most family-oriented communities in Southern Nevada.
- Affordable Options:While home prices are rising, Henderson still offers more affordability compared to some Summerlin neighborhoods.
- Outdoor Lifestyle:Residents enjoy close access to Lake Mead, hiking trails, and golf courses. The Henderson Multigenerational Center and numerous parks create a strong community vibe.
- Convenience:Henderson is home to shopping centers, restaurants, and medical facilities, so you rarely have to leave the area for everyday needs.
Who It’s Best For
Henderson is ideal for families who want safe neighborhoods and space to grow, retirees looking for quiet living, and buyers who value affordability without sacrificing amenities.
Summerlin: Master-Planned Living in Style
On the west side of the valley, Summerlin is one of the most prestigious master-planned communities in the U.S. Known for its design, luxury, and access to Red Rock Canyon, Summerlin feels like its own city within Las Vegas.
Why Buyers Choose Summerlin
- Master-Planned Perfection:Summerlin is divided into villages, each with its own character, parks, and community centers. It’s designed for walkability and convenience.
- Top Schools:Many of the valley’s best public and private schools are located in Summerlin, making it a strong choice for families.
- Luxury Living:From guard-gated communities to golf course homes, Summerlin offers some of the most upscale real estate in Southern Nevada.
- Outdoor Access:With miles of walking trails and immediate access to Red Rock Canyon, it’s perfect for buyers who want to mix suburban life with outdoor adventure.
- Entertainment & Shopping:Downtown Summerlin provides dining, retail, and events all in one hub, so residents never feel far from activity.
Who It’s Best For
Summerlin appeals to professionals, families, and luxury buyers who want a polished, master-planned community with high-end amenities and long-term value.
Henderson vs. Summerlin: Side-by-Side Comparison
| Feature | Henderson | Summerlin |
| Home Prices | Generally more affordable | Higher, especially in luxury areas |
| Schools | Highly rated | Some of the best in Las Vegas |
| Lifestyle | Suburban, family-focused | Upscale, master-planned |
| Outdoor Access | Lake Mead, golf courses, parks | Red Rock Canyon, walking trails |
| Commute | Closer to airport & Strip (15–20 min) | 20–30 min to Strip, but more secluded |
Which Community Is Right for You?
Choosing between Henderson and Summerlin comes down to lifestyle and budget:
- Choose Henderson ifyou want a suburban atmosphere, affordability, and proximity to Lake Mead or the Strip. It’s especially great for families and retirees.
- Choose Summerlin ifyou’re looking for luxury homes, master-planned communities, and easy access to outdoor adventures at Red Rock Canyon. It’s best for buyers who want long-term value and upscale living.
Both Henderson and Summerlin offer excellent quality of life, so you really can’t go wrong—it’s just about which community aligns better with your goals.
Final Thoughts
Whether you fall in love with Henderson’s family-friendly neighborhoods or Summerlin’s master-planned luxury, both communities represent some of the best real estate opportunities in Southern Nevada.
If you’re ready to explore your options, connect withThe Derek Parent Team. With years of experience helping buyers in both Henderson and Summerlin, we’ll guide you through the financing process and make sure you find the right home in the right community.
First-Time Homebuyer Guide: Buying a Home in Las Vegas
Buying your first home is one of the biggest milestones of your life, and in a city like Las Vegas—where the real estate market moves quickly, neighborhoods each offer a unique lifestyle, and financing options can feel overwhelming—it’s important to have the right guidance.
This guide will walk you through everything you need to know as a first-time homebuyer in Las Vegas. From preparing your finances to choosing the right neighborhood, you’ll see the steps that make your purchase smoother and more successful.
Why Las Vegas is a Great Place for First-Time Buyers
Las Vegas isn’t just the “Entertainment Capital of the World.” Over the last decade, it has grown into a thriving city with family-friendly communities, expanding job opportunities, and a strong real estate market. Here’s why first-time buyers are drawn to Vegas:
- Affordability Compared to Other Major Cities:Prices have risen, but Las Vegas is still more affordable than many coastal markets like Los Angeles or San Francisco.
- No State Income Tax:Nevada has one of the most tax-friendly environments, so homeowners keep more of their income.
- Variety of Communities:You can choose a modern condo on the Strip, a new build in Summerlin, or a quiet neighborhood in Henderson—because the city has something for everyone.
- Strong Job Market:With tourism, technology, and logistics industries growing, the local economy provides stability for homeownership.
Step 1: Prepare Your Finances
Before you start shopping for homes, it’s important to take an honest look at your finances, because being prepared will make the process less stressful.
Check Your Credit Score
Your credit score plays a big role in determining what kind of mortgage you qualify for and the interest rate you’ll receive. Aim for a score of 620 or higher, but some loan programs can work with lower scores.
Save for a Down Payment
Traditionally, buyers put down 20%, but in today’s market, first-time homebuyers have more flexible options:
- FHA loans can require as little as 3.5% down.
- VA loans (for veterans and military families) often require no down payment.
- Conventional loans may allow for 3–5% down.
Get Pre-Approved for a Mortgage
Pre-approval not only shows sellers you’re serious, but it also gives you a clear picture of your budget. A local lender likeThe Derek Parent Teamcan walk you through the process and help you choose the right loan for your situation.
Step 2: Understand the Las Vegas Market
The Las Vegas housing market can be competitive, and prices vary depending on location, amenities, and demand.
- Entry-Level Homes:Many first-time buyers start with townhomes or smaller single-family houses.
- New Construction:Builders in Summerlin, North Las Vegas, and Henderson often offer incentives like closing cost assistance, so these can be a great option.
- High-Rise Condos:If you love city living, high-rises near the Strip offer luxury amenities but often come with HOA fees.
Because the market changes quickly, it’s smart to work with a professional who can help you set realistic expectations. You might face multiple-offer situations, so being prepared will give you an advantage.
Step 3: Choose the Right Neighborhood
Las Vegas is made up of diverse communities, and each has its own lifestyle. Here are a few popular areas for first-time buyers:
- Summerlin:Known for its master-planned communities, great schools, and parks. It’s perfect for families and professionals.
- Henderson:Offers a suburban feel with access to Lake Mead, shopping, and family-friendly neighborhoods.
- North Las Vegas:More affordable options with newer builds and expanding amenities, so it’s ideal if you’re looking for value.
- Southwest Las Vegas:Up-and-coming with plenty of new construction and easy access to the Strip.
Think about your lifestyle and priorities. Do you want to be close to work, or do you prefer quiet streets? Do you need great schools, or are amenities more important? Your answers will help narrow your search.
Step 4: Work with the Right Real Estate and Mortgage Professionals
Buying your first home can feel overwhelming, but you don’t have to do it alone. Having a trusted team by your side makes all the difference.
- Realtor:Helps you find properties, negotiate offers, and guide you through closing.
- Mortgage Lender:Assists with financing options, pre-approvals, and making sure your loan closes smoothly.
- Home Inspector:Ensures your home is in good condition before you buy.
AtThe Derek Parent Team, we specialize in helping first-time buyers navigate financing options in the Las Vegas market. Because we’ve been in the industry for decades, we know how to make the process simple and stress-free.
Step 5: Make an Offer
Once you’ve found the right home, it’s time to make an offer—and strategy is everything.
- Be Competitive:In a hot market, lowball offers often get rejected.
- Include a Strong Pre-Approval Letter:This reassures the seller you’re financially ready.
- Consider Seller Incentives:Builders and sellers sometimes offer credits toward closing costs, so ask your agent to negotiate these for you.
Step 6: Closing the Deal
The closing process typically takes 30–45 days. During this time, you’ll:
- Finalize your mortgage paperwork
- Complete inspections and appraisals
- Sign your closing documents
It can feel like a lot, but once you’re done, you’ll officially get the keys to your new home.
Tips for First-Time Homebuyers in Las Vegas
- Don’t Skip the Inspection:Even if the home looks perfect, inspections can reveal costly issues.
- Know Your Budget Beyond the Mortgage:Property taxes, HOA fees, and utilities all add up, so plan ahead.
- Think Long-Term:Buy a home you can grow into, not just one that works for right now.
- Stay Flexible:The right home might not check every single box, but it should meet your most important needs.
- Leverage First-Time Buyer Programs:Nevada offers down payment assistance and other incentives, so take advantage if you qualify.
Final Thoughts
Buying your first home in Las Vegas is an exciting step, and with the right preparation, it doesn’t have to feel overwhelming. The city has a strong economy, a wide range of neighborhoods, and flexible financing options—so there’s truly something for every type of buyer.
The key is preparation: understanding your finances, working with trusted professionals, and knowing what to expect in the market.
If you’re ready to take the next step, connect withThe Derek Parent Team. We’ll guide you through the process, answer your questions, and help you secure the right loan for your first home in Las Vegas.
Debt vs. Income: What You Need to Know
Income is a crucial component lenders consider when granting you a mortgage. However, income is not all that a lender will consider when determining how much you qualify for. They will also look at your debt to income ratio, in addition to other financial indicators.
If you make a lot of money but also have a lot of debt, this could be a red flag to lenders and reduce your borrowing capacity.
How debt & income affect your mortgage
Income and debt are yin and yang, opposites of each other. Debt is a liability, whereas the more income you have, the more power you have to make those liabilities go away. Having more income also gives more control of the following.
- It allows you to prepay your mortgage faster.
- It allows you to qualify for more when buying a home.
- It allows you to move into a shorter and more aggressive debt pay-down structure such as a 15-year fixed-rate mortgage.
- It allows you to pay off your credit cards in full every month, rather than paying unnecessary and pricey interest (assuming you’re making smart financial choices).
- It allows you to consume smart debt, such as purchasing a rental property that can generate even more income.
- It allows you to make investments, generating more income.
- It allows you to save and plan for the future.
Having this control over these and other financial choices is precisely why it is CRUCIAL to carry a debt-to-income ratio no bigger than 36% of your gross monthly income. The goal when borrowing mortgage money is to put yourself in a position where you can have a life beyond paying it off, while still saving and contributing to your retirement savings.
What you need to consider before you buy
Always remember it takes $2 of income to offset every $1 of debt for a 2:1 ratio for mortgage qualifying purposes.
If you want that fancy Mercedes at an $800 per month car payment, then you’ll need $19,200 a year in extra income or you’ll need to cut a current debt payment of $800 to balance your debt-to-income ratio.
If you want the dream house at $3,500 month, then aim your debt-to-income ratio at 36%—meaning you would ideally want income at $117,000 a year without carrying other consumer obligations in order to afford this mortgage.
When you are thinking about buying a home, also remember to consider what the future holds for your finances. For example, if your monthly expenses will likely increase in the future due to expenses like childcare costs or college tuition, this is something important to keep in mind. By keeping your debt to income ratio below 36% of your gross monthly income, you’ll put yourself in a position to enjoy your new home but also be able to continue saving for your future.
Unexpected Homebuying Roadblocks
Your offer has been accepted on your dream home and you have a down payment, good credit, and little debt. So the escrow process should be a breeze, right? WRONG! There are some surprising deal breakers that can quickly cause the transaction to go south. Here are a few of the most common ones.
Closing Lines of Credit
Maybe you’ve realized you have a few more credit cards than you’d like your lender to see. Time to shut ’em down before they check your credit, right? Not so fast. Closing down multiple accounts could actually ding your credit. Credit is composed of a few key components, the age of an opened account being one biggie. Shutting down multiple accounts will also lower your credit utilization rates, which can be yet another credit killer. Research the impact of any change to your credit before taking action.
Not Calculating the True Cost of your Mortgage Payment
The cost of homeownership goes far beyond a monthly mortgage check. There are HOA fees, maintenance costs, PMI, etc. Make sure you’ve calculated — and recalculated — whether the cumulative costs will be feasible. You don’t want a nasty surprise when you finally crunch your numbers and realize they don’t fit within your current financial circumstances.
Forgetting Maintenance Costs
Remember that you’ll have to spend much more time and money on the dream house with a pool in the backyard. If you simply don’t have the budget for a home with a pool, communicate this to your agent before you start looking at houses. The last thing you want is to end up falling in love with a home you simply can’t afford to maintain.
Assuming Fixtures are Part of the Deal
Make sure you and the seller agree on exactly what will be included — and what the seller will be taking to their new home sweet home. Things such as light fixtures are often assumed to be a part of the package, but if it’s an heirloom chandelier from the seller’s grandma, chances are they’ll consider it fair game to take when they go. Set out clear expectations of what’s staying and what’s going to avoid any confusion or upset.
Buying a home can be stressful, but with a little preparation (and the right lender and real estate agent) things can go relatively smoothly. No matter what happens, remember to stay flexible. Some things may arise that are out of your control. How you respond can ultimately sway the outcome — and hopefully get you the house of your dreams!
What Happens if You Inherit a Mortgage?
Most homeowners have mortgages, and the sad reality is all homeowners die eventually. And, if a homeowner dies with an outstanding mortgage loan, the mortgage company still expects to be paid. Whether the balance owed will be due all at once or can be paid off over time depends on who inherits the home and the state where thedeceased’s estate is being administered.
What Happens When a Mortgage Holder Passes Away?
If someone dies owing money on a conventional mortgage, the mortgage company must usually be formally notified of the death as part of the probate process. However, if the deceasedtransferred his or her home to a living trust, such notice may be optional. (Sometimes the loan documents require it.)
If the home is owned by spouses and one of them dies, the mortgage company may allow the surviving spouse to make payments without interference since the loan had been extended to both parties.
If, however, the property is inherited by someone else, such as the deceased’s children, or if the home was just in the name of the deceased, the mortgage company may require the new owner to refinance the mortgage or pay the entire loan balance owed within a fairly short period of time. If the new owner is unable to meet its demand, the lender can foreclose on the home. (If the home was ultimately lost to foreclosure, that should not affect the credit of the “heir” because the heir was never personally obligated to pay the mortgage.) Flexibility on the part of the mortgage company in these circumstances is difficult to predict.
What should I do if I can’t pay?
Sometimes, people do not notify the mortgage company of a mortgage holder’s death and simply continue paying the loan. This scenario might happen, for example, if the heir to the home has bad credit, cannot afford to refinance or, alternately, pay the entire balance due, and yet wants to hold on to the house.
This strategy, however, could blow-up in the heir’s face should the mortgage company discover the ruse because the mortgage documents themselves will allow a foreclosure if the company is not notified of the death within a specific period of time.
All 50 states have laws that regulate mortgages at death. The very best option is to consult with an experienced estate attorney in the state where the home is located. That way, you can learn what specific options you may have.
This article was written by Brad Wiewel and originally published on Credit.com.