Buying a home is one of the major decisions we make in our lives and certainly a big step into securing the future not only for us, but our families as well. Many first time home-buyers in Albuquerque tend to be confused because of the many steps involved in the purchase of a home. Lots of decisions are involved from preferred locations all the way to monthly housing costs and everything in between. Knowing how to maneuver this process can get you the right home that you would be proud of.
Why Buy a Home in Albuquerque
Renting a house gives you a place to live for a month or so, but after the money is gone, renting repeatedly can be a challenge. This is why you need to secure your future and put the monthly cost of rent to a stop.
A home is an exceptional investment bearing in mind the vibrancy of the Albuquerque real estate market and the increase in value of homes over time. Your home becomes part of your equity and once the mortgage is paid off, your value will increase significantly putting you at a good financial position whether you sell the house or not. However, as a word of caution, not all homes appreciate in value. This is why you need to be careful on the location you buy the home particularly concerning its past and present performance on the real estate map. A real estate professional can help you decipher on what constituents a valuable home investment.
If you buy your home on a mortgage, you are likely to enjoy big tax deductions because the interest on the mortgage is deductible as well as the cost of improvement if any and tax credits on green technology.
Buying a home in Albuquerque also gives the opportunity to make it your own by customizing a number of things that you may not be able in a rented space. These customization can greatly enhance the value of your property.
Planning Your Albuquerque Home Purchase
Before you even start scouting for your ideal home in the various Albuquerque real estate listings, it is vital to know exactly what you want in your home. This calls for planning. The following is a snapshot of a typical guide into planning your home purchase.
When it comes to your home needs, you may want to look at the number of bedrooms, bathrooms, the location of the home, its nearness to school or work, the size of the garage and whether it is a single or multi-floor design. Your list of must haves may differ depending on your personal preferences including whether you are single or married and your family size.
Your list of needs and wants as far as home purchase is concerned should shape your imagination and give you clarity on how to go about searching for your ideal home. Remember resources are scarce and the more efficiently you allocate them, the better.
How Much You Can Afford
This is another decision point you must arrive at after you have developed your list of needs and wants. It is important to crunch the numbers and figure out exactly how much you can spend on your potential home. You need to look at the following:
- The down payment – Most mortgage lenders demand a down payment. Ensure you ask your prospective lender on the requirements of the down payment if any. You can look at your savings and investments to see how much you can consolidate for your down payment.
- Monthly Mortgage Payment – Apart from the down payment, you must assess how much you can possibly afford as a down payment. While it is true that your home is an investment, you wouldn’t want it to tap out your household income. In determining your monthly mortgage payments, the following expenses may have to be included: the mortgage interest, principal, property taxes, mortgage insurance, and homeowners insurance.
Working with an Albuquerque Real Estate Agent
As earlier pointed out, the process of buying a house for sale in Albuquerque can be hectic thanks to the lengthy procedures and endless options available. This is why you need a sound real estate agent who understands the real estate market in Albuquerque and probably the available homes even before they go up for listing.
These professionals also know who the best lenders are, the best neighborhoods based on your budget, the local ordinances and regulations, among other real estate details. As a matter of fact, a real estate agent is your guide to help you down the road to home ownership. In order to get a complete real estate professional that understands and puts your needs first, you ought to have a list of expectations for your ideal agent. Below are some of the things to consider when picking a real estate agent in Albuquerque.
- A knowledge of the available homes in the market
- A clear understanding of your needs and priorities
- An understanding of the potential sellers motivations
- Exceptional negotiating skills as these will come into play when presenting your offers to sellers
- A clear understanding of the available financing options and a detailed analysis of each one of them
- Availability in the event you have questions to be answered or concerns to be addressed.
- Insider information on local contractors, inspection services, and remediation specialists.
Making the Final Decision
After going through the above stages in owning a home in Albuquerque, you should now be ready to walk down the road to your new home.
This will require either a pre-approval or pre-qualification. For a pre-approval, the lender will review your finances and credit history in details as well as confirm your proof of down payment and a regular source of income. For a pre-qualification, the lender will do a preliminary check of your credit history and may be some basic documentation. You should note that a prequalification is not a guarantee for a mortgage loan.
You will also need to do walk-throughs in the properties you have shortlisted so as to determine whether they are suitable based on your list of needs and wants. Thereafter, before you make the commitment to buy, you may need a detailed professional home inspection and a lawyer to oversee the transaction and point out any legal loopholes.