Buying a home in Albuquerque NM?

Here’s some tips to help you through the process.

Buying a home in Albuquerque, NM, is a life-changing experience for you and your family. Unexpected bumps in the road can be disheartening, but with the right amount of preparation and an expert realtor by your side you will be able to smooth out those bumps successfully. The brokers here at NM 24K Real Estate Group can provide you solid gold services, as well as competence and dependability. When you work with us, not only are you buying a home but you’re also saving money and time during the process.

Today’s housing market is fast-paced, so you should always be prepared to make an offer. Once you decide it’s time to purchase a home, where do you start with the process? Luckily, our agents know how to buy property in Albuquerque, NM, and we can help you too. Here are some things to consider before you start shopping for your new home.

Learn the financing basics. Unless you have enough money saved up to purchase a home without a mortgage loan, you’re going to need to learn about some financing basics. The first step requires you to recognize the difference between preapproval and prequalification. Prequalification simply means that you have taken the beginning steps in you lender’s screening. Preapproval means that you have taken all necessary documents to your lender, and you have been approved for a loan of a specified amount. The amount that you’re qualified for will be decided based off of your income, assets, and credit history. Most sellers are looking for buyers that have been through the preapproval process as opposed to the prequalification.

Research your mortgage options. What type of loan will be the best for you? If you’re not sure of the different mortgage loans that are offered, we can give you a brief introduction. Fixed-Rate Mortgages have a set interest rate that cannot be edited, regardless of the current housing market. Adjustable-Rate Mortgages (ARM) are loans that have a fluctuating interest rate. Usually the ARM rate will be lower than a Fixed-Rate Mortgage for the first couple years, and then the interest rate will change.This could result in you either paying more or less per payment. If you would like to learn more about these types of loans, check out the Consumer Financial Protection Bureau’s website.

Hire a buyer’s agent. When you want to buy a house in Albuquerque, NM, the ultimate goal is to save as much money as you possibly can. Choosing a buyer’s agent from NM 24K Real Estate Group doesn’t come with only the relaxation of knowing you’re in good hands: it comes with services worth more than gold. Having a buyer’s agent that can help you facilitate the purchase of your next home can save you a lot of money in the long run. Our agents are excited and prepared to help you purchase the home of your dreams.

Start saving money now. The earlier you begin to save money for a down payment on a home, the better. Do you know how much you’ll need to save? If not, you can find out here. Every penny counts, so start saving all the money you can find because this will help you increase your down payment. Some expenses you’ll want to look out for include:

  • Down payment. Your down payment should be between 3% and 20% of the total cost of the Albuquerque home that you’re interested in. The higher the down payment, the more likely that a seller will be to select your offer. A higher down payment will also lower your monthly payments and upfront fees. If you are unable to afford a down payment, be sure to look into some buyer programs that can help you. Our agents can help you find a local low or zero down payment option, so be sure to get in contact with us.
  • Closing costs. Closing costs can sneak up on you, so be sure to have enough saved up to cover those costs. The closing costs can range anywhere from 2% to 5% of your total loan amount. If closing costs were included in your offer and the seller approved, then you have nothing to worry about. However, sellers are less likely to cover closing costs in today’s market, so make sure you properly prepare yourself.
  • Paying for mortgage points. Points will cost you 1% of your total mortgage cost and can act as “prepaid interest.” Essentially, these points will bring down your interest cost overall and will save you money.
  • Move in costs. You bought your home - great! Now all you have to do is move in. Move-in costs can be anything from hiring movers, renting a moving truck, or taking a few days off of work. Be sure to prepare ahead of time so that those inevitable costs don’t come up as a surprise.

Have an idea of what you’re looking for in a home. Buyers tend to focus on just the appearance of a home and the amount of bedrooms/bathrooms there are. Be sure to consider commute time, nearby schools, yard work/home improvements, and how long you plan on living in your home.

Figure out which neighborhood is right for you. Searching for homes online in Albuquerque is a convenient way to find a home, but you’re not going to learn much about the neighborhoods that these homes are in unless you visit them. Take time to get a feel for the area before you decide on purchasing a home. You can learn more about Albuquerque here.

Don’t focus on absolute perfection. When you search homes in Albuquerque, NM, don’t concentrate on the little things wrong with a home. While a home should be in almost pristine condition, don’t shy away from a home if it only needs a fresh coat of paint. The home may look unacceptable right now because of its outdated paint, but after a nice paint job it could be the home of your dreams. There’s a large difference between remodeling a home and a little bit of elbow grease, so be a little open-minded when making your decision.

Submit a strong offer. Finding the perfect offer for a home in Albuquerque can be complicated. Ultimately, going too low with an offer will result in rejection, but going too high will empty your pockets. As the housing market changes, have an expert realtor by your side. Any of our agents would be more than happy to help you decide on an offer.

Read the fine print. There are many items that could surprise you after closing a deal on a home if you’re not diligent. As easy as it is to sign a contract without reading it, it could damage you immensely in the long run. Take your time and read through your contracts and contingencies with great meticulousness.

Get your agreements in writing. Hand in hand with reading your contract, make sure that your verbal agreements are included in your contract. These agreements can be used as an invaluable reference later if necessary.

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