Tips for Buying a Home in Albuquerque
If you’re considering buying a new home in Albuquerque, New Mexico, it’s easy to understand why! From its entertainment for all ages to the amazing economy, including the diverse and steady job market, Albuquerque’s unique areas have so much to offer.
As you know, buying a home is one of the most significant financial decisions you can make. It affects your life in such exciting ways when done correctly. There are ways to buy a home even if you think you can't afford one. Here are some tips for buying a home if you think you might have trouble getting approved.
1. Buying a home in Albuquerque doesn’t always require a 20% down payment
According to popular belief, the minimum required down payment for a mortgage is typically 20%. However, if you can prove your income and creditworthiness, you can get approved for a mortgage with as little as 3% down. That's because lenders are willing to take on some risk by offering creative financing options. Rest assured that you don’t need perfect credit to make homeownership in Albuquerque a reality either. Even with a credit score below 620, there are plenty of assistance programs available to help you get pre-approved for the right loans to comfortably afford your home.
Getting a pre-qualification is a great way to find out where you stand and how much you could hypothetically get approved for without affecting your credit score. If you like the results of your pre-qualification, do some research on home prices, features, area schools, and anything else that might be important to you in Albuquerque and decide if you’re happy with your options. If so, you can move on to the pre-approval phase of your loan application. If you want to increase your approval amount, try paying down any outstanding debts first. Not only will this improve your credit score, but it can free up some cash in your budget for savings and the other costs associated with buying and owning your new home.
According to popular belief, the minimum required down payment for a mortgage is typically 20%. However, if you can prove your income and creditworthiness, you can get approved for a mortgage with as little as 3% down. That's because lenders are willing to take on some risk by offering creative financing options. Rest assured that you don’t need perfect credit to make homeownership in Albuquerque a reality either. Even with a credit score below 620, there are plenty of assistance programs available to help you get pre-approved for the right loans to comfortably afford your home.
Getting a pre-qualification is a great way to find out where you stand and how much you could hypothetically get approved for without affecting your credit score. If you like the results of your pre-qualification, do some research on home prices, features, area schools, and anything else that might be important to you in Albuquerque and decide if you’re happy with your options. If so, you can move on to the pre-approval phase of your loan application. If you want to increase your approval amount, try paying down any outstanding debts first. Not only will this improve your credit score, but it can free up some cash in your budget for savings and the other costs associated with buying and owning your new home.
2. You will have more costs than your down payment
When buying a home in Albuquerque, there will be many costs beyond the mortgage payment. Aside from closing costs and other fees, don’t forget to factor in costs like appraisals, inspections, turning on utilities, necessary repairs that the seller doesn’t cover, homeowners insurance, and some other surprise costs. These fees can vary in pricing. Depending on the house, certain factors can increase the professional help and due diligence you should perform in order to eliminate possible risks and sizable costs down the line.
For example, if you’re looking at an older home, you’re going to want more specialized inspections to ensure there aren’t costly issues such as termites, hazardous or outlawed building materials, and foundation issues. Learning when big-ticket items like the roof and HVAC system were last replaced can also help you plan for these expenses, or avoid them altogether if you don’t want to take on those price tags.
Additionally, don’t forget to budget for the cost of owning your home. If you’re used to paying utilities on a 1200-square-foot home and you’re looking at 2000-square-foot homes, the utility bills will be different. Also if you’re buying a home in Albuquerque, coming from a different city, the cost of living might be another adjustment to account for.
3. Your real estate agent matters - and the top agent on google isn’t always the best
The internet is wonderful for endless reasons. It’s easy to treat google like a best friend, asking it all of your questions. Where is a good pizza spot? How can you learn a new skill? You might even ask it for great areas to buy a home in Albuquerque! However, when it comes to your agent, you should definitely go deeper with your research than simply trusting their placement in google search results.
A good agent acts as your advocate. Their goal is to help you find a home that fulfills all of your needs in the right area within your budget. They provide legal protection, expert negotiation, a thorough understanding of laws and creative solutions, and can offer you sound financial advice to the best of their ability - helping you determine what you need and don’t need based on their understanding of your goals and their extensive experience in the business.
When searching for an Albuquerque real estate agent, it’s vital that you find someone with a reputation for being open, honest, selfless, and always working in your best interest. Be sure to check your agent’s reviews on google, through their broker’s site if they’re available, on their business social media pages, and on any other sites that come up when you google search their name, such as Zillow, Yelp or even LinkedIn. Whether you pick your agent from the verified google list that pops up at the top, from the regular search results, or even from a friend, the extra step can make all the difference in your house hunt. To learn more about finding the right agent, click here.
If you’re ready to begin buying your new home in Albuquerque, whether you’re looking for a new construction or you’d like a custom-built home, at Centex, we’ve got you covered. With over 70 years of homebuilding experience, we’re committed to providing you with the high-quality home you deserve, backed by our 10 Year Limited Warranty. Click here to see our current new construction homes for sale in Albuquerque or learn more about our custom builds.
Looking for more Foundation tips and learning? Return Home here.
Published 10.25.22 Written by: Divine Bunch