Albuquerque Home Buyer Tips

Great Tips For Albuquerque Home Buyers

Moving anywhere can be overwhelming. There’s the process of locating a place to live, selling your house if you own, changing jobs and going through the actual process of packing your things and moving them. Finding yourself in a new city can be challenging and scary. If you’re considering a big move to Albuquerque, use these tips to buy your perfect home.

How Much Home You Can Afford?

Before you do anything else, you need to decide how what kind of home you can afford, and set reasonable expectations that match that number. Use this home affordability calculator to determine how much you can afford.

What Are You Looking For In Your Albuquerque Home?

Once you’ve set a budget, get to work on a list of things you’re looking for in your new Albuquerque home. Look at styles, sizes, whether you want a garage, a fenced in yard, etc. Your budget will largely determine the type of house you choose. Choose wisely, and decide what things are deal-breakers. Determining wants versus needs is an important step.

How Much Down Payment Do I Need To Buy A Home?

You’ll want to start saving early. 20% is fairly standard for a down payment, though many lenders do allow less. First time home buyers can put down as little as $500. Federal Housing Administration and Conventional loans can be acquired for as low at 3.5% or 3%. If you are a veteran or active duty you may qualify for VA home loan with zero down payment. Find out beforehand what your down payment will need to be. On a $100,000 home, 20% means a $20,000 down payment.

What Are My Mortgage Options To Buy An Albuquerque Home?

When buying a home, there are several mortgage options that exist. Traditional mortgages are the standard, conforming to government-backed regulations. Federal Housing Administration or FHA loans permit down payments as low as 3.5%. Veterans affairs loans often require no down payment.

The amount you put down also affects your monthly mortgage payment and interest rate. If you want the smallest mortgage payment possible, opt for a 30-year fixed mortgage. But if you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Use our calculator to determine whether a 15-year or 30-year fixed mortgage is a better fit for you. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low-interest rate for the first few years of your mortgage.

What Is My Credit Score?

It’s important to get a copy of your credit report to check for any anomalies that might hurt your chances of getting a mortgage or getting a good rate. During the home buying process, pause any activity. Do not apply for new credit cards or loans, etc to prevent your score from dipping.

Compare Mortgage Rates

Check rates across several different lenders to make sure you’re not leaving money on the table. Comparing rates from at least 3 lenders can save up to $3,500 over the life of the loan. Examine different rates and fees to find the best deal.

Research The Best Neighborhoods In Albuquerque

This will also impact home prices. You might find your dream house in a good neighborhood that is $150,000 over budget, or you may find a beautiful property in a less than desirable neighborhood. Check out these few things selecting a neighborhood:

Research nearby schools, even if you don’t have kids since they affect home value.
Look at local safety and crime statistics.
Map the nearest hospital, pharmacy, grocery store and other amenities you’ll use.
Drive through the neighborhood on various days and at different times to check out traffic, noise and activity levels.

There are several beautiful areas to choose from all across Albuquerque with access to great schools and quaint neighborhoods. Search for homes in your favorite area by using the links below.

Search Albuquerque Homes for Sale By Neighborhood

How Much Are Closing Cost To Purchase A Home In Albuquerque?

A common mistake that buyers make is forgetting to account for closing costs when applying for a mortgage. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections, and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent’s commission.

Don’t go into the home buying process without a plan. Use these tips to arm yourself with the right knowledge to get the job done, and buy confidently, in ABQ, and across the country.

This article is prepared by Myers & Myers Real Estate. Myers & Myers Real Estate is a full service residential real estate brokerage located in Albuquerque New Mexico. We help home buyers and sellers in the Albuquerque NM metro area.