Buyer Protection Guide

Top 5 Mortgage Mistakes Nevada Homebuyers Make

These avoidable mistakes cost Nevada buyers thousands—or worse, their approval. Here's what to watch for (and how to fix them).

73%
Miss pre-approval step
41%
Change jobs mid-process
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General guidance. Not legal or financial advice. Consult your loan officer.

The 5 Most Costly Mistakes

And exactly how to avoid them.

1

Skipping Pre-Approval (Or Confusing It with Pre-Qualification)

The Mistake: Many Nevada buyers tour homes without real pre-approval. They assume "pre-qualified" means "approved"—it doesn't. In competitive Las Vegas and Reno markets, sellers reject offers without full pre-approval letters.

The Fix: Get fully underwritten pre-approval before making offers. This means credit pull, income verification, and asset documentation—not just a quick online estimate.

Pro Tip: FHA pre-approvals are typically faster (2–3 days) and easier for first-time buyers. Start here.

2

Making Major Financial Changes During the Process

The Mistake: Buyers change jobs, open new credit cards, finance a car, or make large purchases between pre-approval and closing. Lenders re-verify everything before funding—any change can delay or kill your approval.

The Fix: Freeze your financial life during the mortgage process. No new credit, no job changes, no large purchases. Wait until after closing.

Pro Tip: Tell your loan officer immediately if anything changes—job, income, debt, or life circumstances. Early disclosure = fixable. Last-minute surprises = disaster.

3

Draining Savings for the Down Payment (Forgetting Reserves)

The Mistake: Buyers use every penny for down payment and closing costs, leaving no reserves. FHA and conventional lenders want to see 2–6 months of reserves (PITI) remaining in your account after closing.

The Fix: Budget for down payment + closing costs + 2 months reserves. If you're short, consider gift funds from family (allowed on FHA) or down payment assistance programs.

Pro Tip: Nevada Housing Division offers DPA programs that can cover down payment, allowing you to preserve reserves.

4

Ignoring Credit Until It's Too Late

The Mistake: Many buyers don't check their credit until they're ready to apply—then discover errors, collections, or lower scores than expected. Credit fixes take 30–90 days.

The Fix: Pull your credit 3–6 months before buying. Dispute errors, pay off small collections, and reduce credit card balances below 30% utilization.

Pro Tip: FHA allows 580 credit with 3.5% down. If you're at 560–579, paying off one collection or reducing utilization could push you over the threshold.

5

Choosing a Home Based on the List Price (Not the Monthly Payment)

The Mistake: Buyers focus on home price ("I can afford $400k!") but forget about property taxes, HOA fees, insurance, and mortgage insurance (MIP/PMI). The monthly payment is what matters.

The Fix: Use a full PITI calculator (we have one) to see the real monthly cost. Factor in Nevada property taxes (~0.5–0.8%), insurance, and HOA if applicable.

Pro Tip: Henderson and Summerlin have higher HOA fees. A $400k home with $300/mo HOA costs more monthly than a $420k home with no HOA.

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