Real Estate Information Archive

Just listed! These latest Albuquerque properties for sale are just what the real estate market has been waiting for. Whether you're looking for the perfect starter home or ready to upgrade your lifestyle, these homes have what you need.

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

3515 COLINA SERENA Place NE, Rio Rancho, NM 87124

Beautifully updated, former Pulte Model home in the highly sought after community of Loma Colorado. This home is tucked in a quaint cul-de-sac and backs to open space. Multiple living spaces to fit into your lifestyle. Flooded with light and open floor plan, it has been freshly updated with designer details. Kitchen features an amazing, large granite island with seating and storage. Ample cabinets and countertops, newer Stainless appliances & a walk in pantry. New hot water heater. Off the kitchen you will find a functional Mudroom w/storage and laundry room. One bedroom on the main level and 1/2 bath. Glass doors open to the backyard, which features a sports court, pergola, mature trees, lawn and the privacy of open space behind it. On the second level you will be greeted with a huge Loft.

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1603 CAMINO PYRENEES SE, Rio Rancho, NM 87124

Welcome home to this Cabezon gem with ALL the bells & whistles!!! This 5-bedroom Granada Floorplan includes a GIANT loft with room for everyone. Lovingly renovated, this home features wood-look tile floors and a GORGEOUS kitchen with Custom granite counters, 5-burner gas range, HUGE island with storage, drink fridge, soft-close drawers and oversized pantry. Enjoy the gas fireplace in one of TWO living areas. Master bedroom is also oversized with custom crown molding, walk-in closet with custom shelving, separate jetted tub, shower with dual shower-heads, and dual sinks. Plus, low utilities with the 6.7KW Solar system with Off-Grid capabilities! See more in the supplemental remarks.

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Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Just listed! These latest Albuquerque properties for sale are just what the real estate market has been waiting for. Whether you're looking for the perfect starter home or ready to upgrade your lifestyle, these homes have what you need.

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

10908 ARGONITE Drive NW, Albuquerque, NM 87114

Beautiful single story home in the sought after community of Stonebridge with Views of the Sandias. This showstopper has been well maintained with tasteful touches. Kitchen offers silestone countertops, ample cabinet space, eat in bar, and a butcher block moveable island. Great room offers a gas log fireplace. Home has a 4th bedroom that could be used as a flex space/office. Htg/Cooling replaced 2022. NEW ROOF 9/2022 and garage door 9/2022. Seven windows replaced in 2021. Wired for security system. Wonderful outdoor living space with BIG VIEWS of the Sandias. Community offers a pool and parks. Near shopping and schools. See list of updates.

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374 W MEADOWLARK Lane, Corrales, NM 87048

Welcome home to this Almost-New Townhome in the heart of Volterra Village! This precious LGI home features a beautiful kitchen with gas range, granite countertops, pantry and plenty of counter space, plus a water softener and reverse osmosis system! The open floorplan downstairs features a well-sized living area, dining area plus a convenient half bath. Enjoy the mountain views from your backyard with a covered patio and easy-to-maintain xeriscaping plus gorgeous views off the master bedroom balcony. WIth a 2-car garage, 3 bedrooms, and 2 1/2 baths, this has everything you need. For easy living, with close access to I-40, shopping, and Kirkland AFB, make this one home today.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Because Albuquerque home inventory is low, some buyers might panic and buy before they are ready, which means they might end up with a home that isn't right for them. You should take your time when searching for a home. Your patience might lead you to miss out on a few homes, but you'll be glad you did. Take your time and think about what you want. Here are a few questions you'll want to ask to make sure you don't miss any details.

Is there room for your pets?

Make sure there’s plenty of space for your animals and their things. This might seem like something you don’t need to think about but if you move in and don’t have space for their food bowl you’ll always be tripping over them. You’ll want to make sure the house you choose has enough room for Fido.

Where are you keeping the trash can?

Again this is one of those small details that will drive you crazy after you move in. While it won’t be enough to drive you out of the house it’s still worth noting. You may have to choose between several homes and it can easily come down to the details.

Which direction does it face?

While a west facing home is great for watching sunsets but you’ll likely have to have the AC running full blast April through August.

Where are all the structural walls?

If you’re planning on adding a room or knocking down walls it would be wise to have an engineer make sure any walls you want to knock won’t cause the house to collapse if you take them down.

Is the pantry big enough?

A small pantry isn’t a problem that’s easily fixed through renovations so make sure it’s got enough room for storing the food you and your family will need.

What condition are the floors in?

Check the floors very carefully. Replacing flooring is a very expensive and time consuming project. Even if they pass inspection they might not suit your tastes. Remember you’ll have to live with it or replace it yourself.

Where is the closest supermarket?

If location is one of your priorities and the home you want is in the woods or over the mountain you’ll have to compromise easy access to shopping and gas. You might start to get frustrated with the long drives into town after the excitement of the new house wears off.

Is there a Home Owners Association?

This is an important question if you’re planning on changing the outward appearance of your home or lawn. HOAs have policies and regulations that will restrict what you’re able to do.

How are the local schools?

Even if you don’t have any kids a good school district is important towards home values. Pay close attention to possible rezoning as it happens often in growing areas.

How are the acoustics?

Pay attention to how sound moves through the house. If there’s a big echo from the upstairs loft think of how it will sound through the whole house if your kids are playing.

Do you have the right wiring?

If you’re looking at an older home you may not have the wiring needed to accommodate all the newest technology. Check it before you buy so you can be sure you can use the proper appliances in your home.

Is the yard the right size?

If your yard is too small you won’t be able to enjoy it with your family, but if it’s too big you’ll spend more than you need to in its upkeep.

What are the neighbors like?

Are there a lot of young couples in the neighborhood or are you seeing older couples? Get a feel for the neighborhood and see if it will be a good match for you.

Have you checked for sex offenders?

As grim as it sounds you should always check a new neighborhood for registered sex offenders.

Have you scheduled an inspection?

While you might be tempted to buy the home as is, taking the extra time to have an inspection done will weed out any major issues the home might have that you would’ve had to fix yourself down the line. If you are ready to start your search for a home contact The Sandi Pressley Team today.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

1632 BORREGO Drive SE, Albuquerque, NM 87123

Welcome home to this Almost-New Townhome in the heart of Volterra Village! This precious LGI home features a beautiful kitchen with gas range, granite countertops, pantry and plenty of counter space, plus a water softener and reverse osmosis system! The open floorplan downstairs features a well-sized living area, dining area plus a convenient half bath. Enjoy the mountain views from your backyard with a covered patio and easy-to-maintain xeriscaping plus gorgeous views off the master bedroom balcony. WIth a 2-car garage, 3 bedrooms, and 2 1/2 baths, this has everything you need. For easy living, with close access to I-40, shopping, and Kirkland AFB, make this one home today.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Are you looking for the ideal starter home or investment property? Or maybe you're looking for a newer home? Our latest HOT Albuquerque homes for sale are just what youre looking for!

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

1910 GOMEZ Drive SW, Los Lunas, NM 87031

Fixer upper! Great Opportunity for an investor or handy person. Large living area with cathedral ceilings, private back yard and spacious rooms. The home is in a great location close shopping, restaurants and easy access to the freeway. With TLC this wold make a great investment /starter home. Being sold as is, seller will not make any repairs, inspection will be for information only.

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1632 BORREGO Drive SE, Albuquerque, NM 87123

Welcome home to this Almost-New Townhome in the heart of Volterra Village! This precious LGI home features a beautiful kitchen with gas range, granite countertops, pantry and plenty of counter space, plus a water softener and reverse osmosis system! The open floorplan downstairs features a well-sized living area, dining area plus a convenient half bath. Enjoy the mountain views from your backyard with a covered patio and easy-to-maintain xeriscaping plus gorgeous views off the master bedroom balcony. WIth a 2-car garage, 3 bedrooms, and 2 1/2 baths, this has everything you need. For easy living, with close access to I-40, shopping, and Kirkland AFB, make this one home today.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Albuquerque home sellers sometimes find themselves accepting an offer only to receive an even higher offer shortly afterwards. There can be a lot of strategic juggling involved, but generally, a seller cannot back out without facing legal repercussions. As soon as you agree to a sale, you're bound by the terms drawn up by the real estate agent. The contract is legally binding and often contains terms about what will happen if the sale does not go through.

When a sale does not occur after an agreement has been reached, the buyer's financing is usually the culprit. As a result, the seller may keep some of the deposit funds or even keep the entire deposit. It is also possible for the seller to work with the buyer to resolve any issues that have arisen during the process.

Both parties are protected by these terms against unforeseen problems and challenges during this complex financial transaction. It is not permitted to back out of a contract for personal reasons. When a buyer accepts an offer, they must purchase the home or lose their deposit. Sellers who renege on their agreements risk financial and legal repercussions if they do not sell their property.

Contractual Contingencies Actually Work In Your Favor

It is generally the seller's responsibility to go through with this real estate transaction, but if a better offer comes in, the seller can escape the deal. It is common for a sales agreement to include several contingencies that protect both the buyer and seller from unforeseen issues. Typically, sellers are able to cancel a deal if the buyer requires longer than 30 days to organize the finances with their mortgage lender.

Motivated sellers may be flexible because relisting a property means starting the process all over again if the deal breaks. If you receive a higher offer, however, then allowing the 30 days to expire will allow you to simply accept the new price. Understanding how long the buyer has to organize their finances can help you understand the potential for this financial boost in your contract.

Contrary to this, buyers often include home inspection contingencies in their contracts. By hiring an inspector, the buyer can be confident they are purchasing a structurally sound home. The buyer can impose mandatory updates or repairs on your house if it doesn't meet accepted standards. If you become intransigent over these repairs, the buyer may walk away from the deal without adversely affecting you as the seller.

You May Decide To Accept The New Offer As A Backup

If a new offer has been received on a property, a seller might consider accepting it exclusively as a backup. The sale is not finalized until payment and keys are exchanged. This means that problems can arise at any moment throughout the sales process. Having a backup buyer on the hook can protect you in case of a problem with some part of the agreement.

It's also important to consider the ramifications of accepting a new offer. A second potential buyer might be viewed by many sellers as disingenuous, for example. A buyer will start planning to acquire and use your home once you've agreed to sell it (or any other asset, for that matter). In other words, backing out of a sale can be a minor inconvenience for the buyer or a major disruption to their life plans. As such, you should always consider a second potential buyer's updated offer carefully. Similarly, an updated offer might be only slightly higher than the original, leading to a situation in which pursuing this additional cash is far more trouble than it's worth.

On the whole, it's important to understand the entire picture and consider everyone involved in the transaction upon receiving a second offer on your home after agreeing to terms.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

1910 GOMEZ Drive SW, Los Lunas, NM 87031

Fixer upper! Great Opportunity for an investor or handy person. Large living area with cathedral ceilings, private back yard and spacious rooms. The home is in a great location close shopping, restaurants and easy access to the freeway. With TLC this wold make a great investment /starter home. Being sold as is, seller will not make any repairs, inspection will be for information only.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Moving to a new home in Albuquerque is exciting, but with the thrill come the inconveniences of packing up your belongings. In this case, you have two choices: hire moving companies or do it yourself. 

Packing up and moving your home is not an easy task. Hundreds of things can go wrong, and hundreds of things must be handled. It is a stressful situation, and the tension increases if you handle it yourself. 

It will be easier to avoid problems later if you prepare now. Here are a few tips to make moving day easier.

Things to do before you start packing

You should begin the process at least ten days before your move. You will have less to pack and move into your new home if you get rid of clutter as soon as possible. 

Getting rid of any furniture that cannot be disassembled and won't fit through doorways or rooms in your new house is a good idea. You may be able to sell it or find someone who will buy it from you if you do this far in advance of your relocation. 

Classify your items

Before the relocation, spend at least one hour every day classifying objects. As a result, you won't have to explain anything that requires special attention or should not be handled by the packers and movers when they arrive.

Don't leave expensive or critical goods unattended. Jewelry, computers, financial records, etc., fall under this category. The best way to handle these pricey and private items would be to do so independently. Put them either in a bag you always carry with you, at a bank, or with trusted individuals. 

Calculate your expenses

Obtain two or three quotes from professional moving companies suggested by friends or reliable consumer sites since moving costs can vary greatly. Ensure that the business is licensed and insured as well.

To estimate the cost of a professional relocation, use an online calculator. Additionally, you can also check out customer reviews before settling on a moving company.

Start packing

Pack items you don't need every day well in advance. You will know what's inside the boxes if you label them properly as you pack.

Separately pack your necessities, such as medications, phone chargers, cups, plates, a kettle, food, a change of clothing, etc. Always bring your valuables, including bank documents, identification cards, birth certificates, credit cards, passports, jewelry, etc.

To protect appliances from impact, moisture, and static, especially during intercity moves, you may need to bundle them in many layers. 

Packing advice

It will be simpler to unpack at your new house if you pack one room at a time. Some advice:

• Carefully pack every item and keep each box padded within.
• Label the boxes according to the rooms or items.
• Keep boxes lightweight for easy movement. 
• Store all of your essentials in boxes labeled "essentials."

Minor furniture parts, such as nuts, bolts, screws, etc., should be kept in airtight bags, taped to the furniture they belong to. 

When it comes to moving your irreplaceable keepsakes, art works, and treasured possessions, a competent fine art moving and storage service provider is recommended.

Update the information

It's simple to become preoccupied with the relocation, but it's crucial to let friends, employers, and creditors know your new address.

To avoid service interruptions and past-due payments, notify your utilities and service providers about your move. 

Contact your local phone, cable, internet, electric, gas, and water companies. You should plan for the utilities to be disconnected from your old house and reconnected in your new one before moving in.

Settling at your new home

The process of setting everything up will take time if you decide to unpack alone. You will need an overnight bag that contains everything you need for a day or two. 

Make sure to clean your new house a day or two before you move in, paying particular attention to the kitchen and bathroom. 

If you follow these tips, your move in Albuquerque will definitely go smoother.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6412 MOJAVE Street NW, Albuquerque, NM 87120

Wow - this custom gem has all the bells and whistles! Enjoy details that you normally find in Santa Fe here in the heart of the petroglyphs: Diamond plaster walls, brick floors, GORGEOUS Vigas, cathedral ceilings, Solid Wood doors with Brass hardware, Inlaid wood flooring, travertine flooring and more! Relax with the dual living areas featuring 2 Kiva fireplaces. Enjoy cooking in your gourmet chef's kitchen featuring a Sub-Zero wine fridge, 6-burner gas range with Thermador Hood, and ELEGANT granite countertops. Make the Master Suite your retreat with a gas fireplace, separate living area and spa-like master bath featuring skylights, separate shower and jetted tub. All New in 2021: TPO Roof, 2 Refrigerated Air Units, Furnace AND Water Heater.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

The experience of owning your first home in Albuquerque can be exciting, but it can also be challenging. You need to consider many factors before building or buying a new home. Choosing between buying and building is tricky, as both options have their advantages and disadvantages. Several factors need to be considered, including location, cost, budget, space, sustainability, family size, and others. For your convenience, here is a simple guide: 

Considerations

It'd help to consider some factors before deciding whether to buy or build your first home. They include:

1. Location And Cost

By comparing the average cost of buying versus building a new home, you will be able to make an informed decision. Different neighborhoods and locations will have different amounts. The idea that buying a house is cheaper than building one isn't entirely true. Although the price of an existing home may seem fair, you may find there are many hidden costs, such as remodeling, redesigning flooring, and others, which may make it more expensive than building your own home.

The amount of money you spend building a house is straightforward. All you need is good architectural plans and a reliable construction company to turn the next page of your life as a homeowner. It has no hidden costs; you do your calculations and know all the expenses before construction starts. 

2. Quality Of Construction

The quality of construction may greatly influence your decision or build. If you are buying an existing home, you may want to research the contractors who built it, their reputation, and their reliability. A poorly constructed home isn't something you want to buy. 

On the other hand, building a home has its advantages. Construction companies are chosen based on their efficiency and quality. As well as choosing the design, size, and fixtures, you decide how they will be installed. 

3. Repairs And Remodeling

When buying an existing house, you'll have to deal with remodeling, repairs, and move-in conditions. When you buy a home that has already been updated, you're in luck, but if the house is outdated, you'll need to make improvements. It may also be necessary to get a permit to carry out the renovations. Taking your time and building your own house is the best option if you can't handle the pressure.

Advantages And Disadvantages Of Building Your First Home

Building your first house has two sides to it. There are benefits you can draw from this option as well as limitations.

Here are some of the benefits of building over buying your first home;

• Energy Efficiency: You choose all the materials used, ensuring they're all energy-efficient. 
• Less Competition: Unlike house hunting, you don't compete with other buyers for the same house.
• Customization: The house design, size, landscaping, and all features are upon you to decide. Thus, you don't compromise your desires and settle for what you don't like entirely. 
• Fewer Maintenance Costs: The insurance coverage is much lower on a new home, and it'll take a long time before you start repairs.

The limitations of building your home are:

• Costly: Constructing a new home is a high-value investment. You’ll need a lot of money to build a house.
• Overwhelming Decisions: You'll have to make all the decisions. It can be overpowering for a new homeowner.
• More Time And Effort: It'll take a very long time before you can move into your new home. Planning, flooring, landscaping, and other activities will take a long time. 

Advantages And Disadvantages Of Buying Your First Home

As in building, buying your own home also has its pros and cons. The benefits of buying include:

• Neighborhood Choice: You get to choose your neighborhood in Albuquerque depending on your interests and financial capability. For instance, you can select a home closer to town or a school if you have kids.
• Less Paperwork: The legal documents required when buying a house are less than what's needed to build one. 
• Moving-in Condition: You move in immediately after paperwork and renovation, unlike in a building where you have to wait until construction is complete.
• Cost Savings: You save a lot when you buy an existing home that doesn't require renovations and updates.

The disadvantages of buying a home include:

• Maintenance And Additional Expenses: There are high chances you'll have to update and remodel the house to suit your needs and cater to the maintenance issues that arise from time to time. 
• House Hunting Stress: House hunting is stressful; it'll take a lot of time and effort to find the perfect home for you and your family. 
• Hazardous Materials: You won't know whether the materials used in construction are harmful or not. You may move into a home with mold, lead paints, asbestos, and other toxic building materials.
• Compromise On Design: You may find a home in good condition, but you may not find one with all the features and styles you want.

The process of owning a home is both exciting and overwhelming at the same time. You'll need to make critical decisions like buying or building a new home. This guide provides you with all the information you need to know before you make that decision. Ideally, weigh the pros and cons of each option and settle on one that best suits your unique needs.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6412 MOJAVE Street NW, Albuquerque, NM 87120

Wow - this custom gem has all the bells and whistles! Enjoy details that you normally find in Santa Fe here in the heart of the petroglyphs: Diamond plaster walls, brick floors, GORGEOUS Vigas, cathedral ceilings, Solid Wood doors with Brass hardware, Inlaid wood flooring, travertine flooring and more! Relax with the dual living areas featuring 2 Kiva fireplaces. Enjoy cooking in your gourmet chef's kitchen featuring a Sub-Zero wine fridge, 6-burner gas range with Thermador Hood, and ELEGANT granite countertops. Make the Master Suite your retreat with a gas fireplace, separate living area and spa-like master bath featuring skylights, separate shower and jetted tub. All New in 2021: TPO Roof, 2 Refrigerated Air Units, Furnace AND Water Heater.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Whether you're looking for the perfect first home or ready to step up to a more custom home, we have you covered with these latest HOT Albuquerque properties. These homes offer plenty of amenities and great locations, so they're sure to sell fast!

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

6412 MOJAVE Street NW, Albuquerque, NM 87120

Wow - this custom gem has all the bells and whistles! Enjoy details that you normally find in Santa Fe here in the heart of the petroglyphs: Diamond plaster walls, brick floors, GORGEOUS Vigas, cathedral ceilings, Solid Wood doors with Brass hardware, Inlaid wood flooring, travertine flooring and more! Relax with the dual living areas featuring 2 Kiva fireplaces. Enjoy cooking in your gourmet chef's kitchen featuring a Sub-Zero wine fridge, 6-burner gas range with Thermador Hood, and ELEGANT granite countertops. Make the Master Suite your retreat with a gas fireplace, separate living area and spa-like master bath featuring skylights, separate shower and jetted tub. All New in 2021: TPO Roof, 2 Refrigerated Air Units, Furnace AND Water Heater.

Learn More!

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87 CAMINO ALTO, Sandia Park, NM 87047

Single owner home situated in the community of Sandia Knolls. Views of the mountains from the back yard with grassy meadow. One story home offers 3 good sized bedrooms, 2 baths, 2 living spaces separate from each other and both have their own entrances. Great flex space for home office or home schooling or hobbie room. Community water and paved roads. Easy commute to ABQ, Santa Fe and Madrid.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Building a custom home rather than buying an existing property in Albuquerque might require a construction loan. This type of loan covers only the cost of building a custom house and covers a short time period.

Your home must then be completed before you can apply for a mortgage. You use the mortgage to pay for your completed home.

A construction loan is usually shorter-term and has a higher interest rate than a mortgage.

In most cases, loans last for a year, during which the property must be built and a certificate of occupancy must be obtained.

What Do Construction Loans Cover?

Building materials, permits, the cost of the land and your contractor's labor can all be covered by a construction loan. The money may also be useful for landscaping and appliances.

To get an accurate loan-to-value calculation, it is important to clarify with your lender what the construction loan will cover.

A contingency reserve is often included in construction loans. You can use the reserve to cover any unexpected construction costs. Your contingency reserve would be used if, for instance, you decide you would like higher-end cabinets than you originally planned.

How Do These Loans Work?

Variable interest rates are common for construction loans, so the rate increases and decreases based on the prime rate. In almost every case, the loan rate will be higher than a traditional mortgage. Conventional mortgages require you to put your home as collateral. You could lose your home if you defaulted. Since construction loans don't have this option, they are higher-risk loans, which means you pay more in interest.

The lender requires detailed plans, budget estimates, and an estimated timing for the project before providing a construction loan.

As soon as your loan application is approved, you will be put on a construction schedule, also known as a draw or draft schedule. Only interest payments are expected during this period. As you make progress on your home, your lender pays you in phases.

As major milestones are achieved, draws will take place. As an example, you may receive a drawing when your foundation is laid.

Building progress will be checked by an inspector or an appraiser during the construction process.

Your construction loan might be converted to a standard mortgage once your home is completed. This type of loan is called construction-to-permanent financing.

If you get a loan that’s only for construction, then as the borrower, you might have to obtain a separate mortgage that is then used to pay off your construction loan.

Different Types of Construction Loans

Construction-to-permanent loan

Getting a construction-to-permanent loan enables you to finance both your home construction and your mortgage. The money you borrow goes toward the construction of your home. You then convert your loan to a permanent loan when the construction is completed and you move in.

This option has several benefits, including the fact that you only have to pay closing costs once.

In the event you are converting your construction loan to a permanent loan, the repayment period usually lasts 15 to 30 years, and you pay interest and principal together.

Construction-only

Construction-only loans provide you with funding just to finish building your home, but as the borrower, you are required to repay the loan in full at maturity, which is usually within a year, or take out a mortgage for permanent financing.

The construction-only loan funds are dispersed based on the extent of the project's completion.

Construction loans may be more expensive because you have to go through two loan transactions, which means two sets of fees.

Owner-builder construction loan

Finally, there is a loan specifically for home builders. There are construction-to-permanent and construction-only loans. In most instances, the borrower and the builder are the same person, but you need to have a license to get this type of loan.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6 WHIPPOORWILL Lane, Tijeras, NM 87059

Mountain Living at its finest! Serene, light filled sanctuary, within this custom built home spacious home with soaring ceilings and light filled rooms, a wall of windows open to the majestic Pines. Pride of Ownership. Features open floor plan. Kitchen offers an Island, ample cabinet space & countertops that flows into the dining room. Freshly stained concrete floor in great room. Three generous bedrooms, w/the primary suite & loft occupying the top level, with viewing deck. New carpet. Oversized 2cg. Wonderful outdoor entertaining spaces. New septic tank installed 7/22. And 1550 gal Water Tank system in 6/22. Nature brings serenity to this home with the Vibrant New Mexico sky. Discover wildlife such as deer, rabbits, hawks, hummingbirds, & squirrels. Close to trails, mtn biking, & I-25

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Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Are you looking for a great home in the mountains or near the city? Either way, we have you covered with these latest HOT Albuquerque properties. These homes offer plenty of amenities and great locations, so they're sure to sell fast!

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

6 WHIPPOORWILL Lane, Tijeras, NM 87059

Mountain Living at its finest! Serene, light filled sanctuary, within this custom built home spacious home with soaring ceilings and light filled rooms, a wall of windows open to the majestic Pines. Pride of Ownership. Features open floor plan. Kitchen offers an Island, ample cabinet space & countertops that flows into the dining room. Freshly stained concrete floor in great room. Three generous bedrooms, w/the primary suite & loft occupying the top level, with viewing deck. New carpet. Oversized 2cg. Wonderful outdoor entertaining spaces. New septic tank installed 7/22. And 1550 gal Water Tank system in 6/22. Nature brings serenity to this home with the Vibrant New Mexico sky. Discover wildlife such as deer, rabbits, hawks, hummingbirds, & squirrels. Close to trails, mtn biking, & I-25

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11015 COCONINO Road SE, Albuquerque, NM 87123

Beautiful single story 4BDR/2BA/2CG light, bright & open featuring a huge great room with gas fireplace, raised ceiling and open to the kitchen and breakfast nook for entertaining! Tile flooring! Refrigerated Air, Solar, ECO Water Softener & R/O sys! Master suite features a large walk-in closet, Jacuzzi walk-in tub! Backyard features an extended covered patio, raised garden bed, rock landscape, waterfall pond & mini putt putt course! Great location close to parks, schools, shopping & easy access to Uptown, Downtown, KAFB!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.