When buying a house, unfortunately you can’t just hand over a wad of cash to the owners and finish the deal.
In reality, you’ll have to ask a mortgage lender for a credit rate. Currently, the median value of a Las Vegas home is about $216,000, which equates to about $138 per square foot. The median listed price is about $264,900, or if you’re looking to rent, the average price is $1,350.
Depending on the savings you’ve accumulated, you might not need as much of a boost, but still—the better your credit score, the better your interest rate and the less stress you’ll experience when purchasing a home.
Click here to download our FREE guide to repairing your credit after a bankruptcy or foreclosure.
Why Mortgage Lenders Look at Credit Scores
Simply put, mortgage lenders look at your credit score to determine how reliable you are. If your credit score is decent, then lenders will know they can trust you to pay them back. If you have a poor credit history, they’ll be more wary to trust you.
Related: Buying a Home With Poor Credit: What You Need to Know
What Credit Score is Needed to Buy a House in Las Vegas?
While no specific number is necessary to buy a house, your credit score can impact ability to buy a home. The typical credit score ranges from 300 to 850, with any score 740 and over preferred, though in Las Vegas, a score of 660 could be enough for a mortgage.
What Interest Rates Can I Get with My Credit Score?
Your interest rates will fall within a certain percentile based on your credit score. The rankings are as follows:
- Excellent (760-850): Interest will be the lowest possible
- Very Good (700-760): Interest may be 0.25% than that of an excellent score
- Good (660-669): Interest may be 0.5% higher than lowest possible rate
- Moderate (620-660): Rates may jump to that of 1.5% or more above an excellent score
- Poor (580-620): Rates can be 2-4% higher than the lowest interest
Related: What Will My Monthly Payment Be on a House?
Credit Not Up to Par? Follow These Steps
If your credit score is not what you’d like, you have a few other options to follow in order to get an approved mortgage.
You can scout around for another lender. Some see past the credit score itself and understand that a low score may be due to, for instance, a sudden lack of employment rather than plain frivolity.
Another option is to get a loan from the Federal Housing Administration (FHA). Lenders may also be more lenient if you can provide evidence that you’ve consistently paid rent on time throughout the past year.
Related: Guide to Buying a House After Foreclosure or Short Sale in Las Vegas
How to Buy a House with No Credit
To answer the question, “Can you get a mortgage with no credit history?” Yes. Similar to how you would act in the case of a low credit score, you can ask around to other lenders, get an FHA loan, or have your landlord submit proof to crediting agencies that you’ve paid your bills. While finding someone to back you may be more difficult without any history at all, it is not impossible.
Buying a house in Las Vegas is just like buying a house anywhere else, except you have to keep Las Vegas’s housing market in mind. As long as you’re prepared to hear about a higher-than-preferred interest rate, the steps to vying for a mortgage are all the same.
