How to Buy a House in Nebraska: A Homebuyer’s Guide
Updated: March 31, 2023
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The median home price in Nebraska is roughly $250,043, which represents a year-over-year increase of 10.2%. Home prices in the state have increased steadily over recent years, with greater growth seen starting in 2020. Despite this overall trend, this median home price and year-over-year percent growth are still lower compared to the national average of roughly $357,589 and 13.5%, respectively.
If you’re planning to buy a home in Nebraska, you’re in luck because it ranks highly in terms of housing affordability.
MoneyGeek walks you through the steps you need to take when purchasing a home in Nebraska so you can avoid crippling debt.
Choose an Ideal Location
Location is one of the key determinants of home prices in Nebraska. However, aside from cost, there are also other factors to consider when selecting a location, such as cost of living, neighborhood culture and access to amenities, especially hospitals and schools.
It is important that you weigh all these aspects against your needs when deciding the best place to buy a house in Nebraska.
Calculate Mortgage Rates
Your lender will typically look at your income, credit score and debt-to-income ratio when evaluating the types of mortgages and rates that you’re eligible for.
Depending on your credit profile and personal circumstances, you might qualify for several different mortgage loan options in Nebraska. Rates tend to vary, so make sure to get the best possible rates by shopping around and comparing lenders as well as their mortgage offerings.
Prepare Down Payment Requirements
Although putting a 20% down payment on a house is ideal and can give you more attractive rates, there are options for lower down payments that make homeownership affordable to more individuals.
There are also federal housing loans that don’t require any upfront payment, such as USDA and VA home loans.
Get Pre-Approved for a Mortgage
It’s important to get pre-approved for a mortgage when buying a home in Nebraska. However, don’t confuse a mortgage pre-approval with a prequalification.
A pre-approval shows that a lender has agreed to commit to giving you a mortgage at a given loan amount. In contrast, a prequalification only serves to prove that you meet the eligibility requirements for a mortgage loan, but it doesn’t necessarily mean that the lender has committed to giving you a loan.
Conduct a Home Inspection
Always let a qualified professional conduct a home inspection before buying any property. A licensed inspector can help detect any issues that may require a substantial amount of repairs and expenses, such as structural damages or other safety issues.
As a homebuyer in Nebraska, you can use damages to negotiate a lower price. There are also lenders who will not grant you a loan without having a home inspection done by a licensed professional.
Close Your Mortgage Loan
Once the home inspection and appraisal have shown satisfactory results, you’ll receive a loan offer from your mortgage lender. Review the offer before proceeding to close the mortgage loan.
This process will also require you to pay closing costs. Thankfully, there are financial assistance programs in Nebraska that can help cover this expense.
Frequently Asked Questions About Buying a Home in Nebraska
To give you more information about buying a home in Nebraska, MoneyGeek answered some of the most frequently asked questions people have about the process.
sources
- FHA.com. "FHA Down Payment Grants for 2022." Accessed November 28, 2022.
- International Association of Certified Home Inspectors. "Home Inspection Standards of Practice." Accessed October 22, 2022.
- New Home Source. "The Top 10 Most Affordable Cities in Nebraska." Accessed October 24, 2022.
- U.S. Department of Agriculture. "Single Family Housing Direct Home Loans." Accessed October 26, 2022.
- U.S. Department of Agriculture. "Single Family Housing Guaranteed Loan Program." Accessed October 26, 2022.
- U.S. Department of Agriculture. "Is Mortgage Insurance Required for a Rural Housing Service Single-Family Loan?." Accessed October 20, 2022.
- U.S. Department of Veterans Affairs. "VA Home Loans." Accessed October 27, 2022.
- Zillow. "Compare Today’s Mortgage Rates in Nebraska." Accessed November 29, 2022.
- Zillow.com. "Nebraska Home Values." Accessed November 29, 2022.
- Zillow.com. "United States Home Values." Accessed November 29, 2022.