Unless you’re able to pay cash for your new home, getting a home loan will be part of your home buying process. Obtaining that mortgage can be complicated and being uneducated about the process can be a costly mistake up front and during the life of the loan. If a loan program seems too good to be true, it likely is and you should proceed with caution. Shop around and look for a great rate but beware if a rate seems to be much lower than average. If you’re shopping for a loan, you’re likely already working with a real estate professional. Along with your broker, friends and family can be a great resource for referrals.

Most of the financial issues you’ll encounter regarding a home purchase is not with the price of the home rather with the cost of the loan. Saving money on the purchase price may seem like a great idea but the cost of those savings in the long run could be great. Doing your homework can help with savings over the life of the loan, even if you don’t keep the home for the full term. Before you commit to purchasing a home, do you homework and

• Learn about the credit rating system and what is needed to obtain the best terms and lowest interest rate.
• Learn mortgage terminology and understand how the term of the loan, prepayment penalties and compounding interest can affect you.
• Learn about making extra payments and how those payments can shorten the term of your loan and how much interest you will pay.

Rising interest rates get us in the mood to buy now. If you’re selling to move up or down, purchasing new home construction or buying your first home, you’re probably watching rates closely. Be careful what you find on the internet. There is a mix of good information and very bad information from refinancing to paying off your mortgage early.

One great resource for consumer information is the Consumer Financial Protection Bureau. The CFPB was established in 2010 and is an agency that offers tons of information about financial markets and empowers consumers to make educated decisions about lending practices.

If you’re looking for a lender in the Albuquerque Metro area, contact the Sandi Pressley today. We have a list of reputable mortgage companies that can help you make smart decisions about your home finance options.

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Sandi's Hot Home Listing

4412 Woordrose Rd. NW, Albuquerque

Price: $309,000 Beds: 4 Baths: 3 Square Feet: 3,040

GORGEOUS UPDATED Popular Sivage Home featuring 4BDRMS + Loft AND Office/4 Baths (All updated 2010). With 3040 SQFT, this home showcases spacious and functional floorplan. NEW Carpet MAY/2015. TOTALLY REMODELED Gourmet Kitchen boasts updates with stunning granite counters/island(MAY 2015), stainless steel appliances-NEW OVEN & MICROWAVE 7/2015- and cozy breakfast nook.

View This Listing

Mortgage rates continue to hover at historically low levels and because of that, the number of people interested in purchasing a home continues to climb as well. If you’re one of the people ready to take advantage of low rates, here are some home buying tips.

Make a wish list – First decide the area you want to live in and the size of home you need. A single-family home will provide more privacy and room to move around and grow. A condo generally offers more amenities and less owner responsibility but also comes with association fees and less privacy. A distressed home is like a blank slate, ready for your creative ideas and can offer a reduced purchase price.

Get prequalified – There are sites on the web that can help you determine how much house you can afford but only a financial institution can give you a prequalification letter. A qualified lender will look at your credit reports and scores and your income and give you an idea of how much home you can qualify for. Be aware, the difference between what a bank will qualify you for and what you can afford might be very different. Look at the numbers, set a budget and stick to it.

Hire a Realtor – Working with a competent buyer broker will make a huge difference in your real estate experience. Look for a broker who does real estate full time, knows the areas you are searching in and has experience negotiating things like repairs and purchase price. If a broker tries to show you homes above your price range, find a new broker. This should be about your best interests, not their commission.

Find your dream home – No home on the market is going to have everything you want, unless you build it yourself. Make a list of needs, wants and things that would be nice to have in your new home. Don’t forget to look ahead. Are you planning to have kids? You might need more bedrooms. Will you reach retirement in the home? You may want to consider a single-story home. Cosmetic flaws can be easily fixed but a home that doesn’t fit your needs will quickly become a frustration.

Make an offer – Ask your Realtor to help you determine a fair price to offer. Your Realtor can tell you how long the home has been on the market and if there are any known issues that would have to be fixed or remedied before closing. Let your Realtor help you negotiate repairs and communicate to the seller how much you love the home.

Don’t skip inspections – Home inspections protect you in the event of any material defects the seller may or may not know about. An inspection company will inspect the home and provide a list of issues with the home. They will also give you an idea of issues that may come up in the near future. They aren’t necessarily looking for cosmetic issues but are more focused on major systems like the AC, roof and electrical systems. This list will help you and your Realtor negotiate repairs.

Get the home appraised – Your lender will require an appraisal to determine the market value of the home you’re about to purchase. The appraiser, a third-party company, will look at similar homes in the area that have sold in the recent past. They will compare the amenities of those homes to the one you’re considering and determine a market value. The lender will use this number to determine how much they will lend for the home.

Meet at the closing table – Once all negotiations have been completed, all parties to the deal will meet to sign documents and hand over keys. The title company will disperse funds to the appropriate people and the deal will close. If you’re ready to get started with the home buying process, call The Sandi Pressley Team today!

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Sandi's Hot Home Listing

23 Sage Hill Drive, Placitas

Price: $475,000 Beds: 3 Baths: 4 Square Feet: 3,623

Exquisite Placitas Property nestled on 1AC w/stunning views.Custom home showcases functional open floorplan w/radiant heat,Kiva FP,soaring T&G Beamed ceilings w/viga, latillas,nichos&adobe accents thru-out. Spacious Gourmet kitchen features stunning custom wood cabinetry,kitchen island,-chef's delight.

View This Listing

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Location, condition and price, these are the three biggest factors in a home’s ability to sell. While experts are advising sellers to move now, while rates are low, it’s important to understand how location, condition and price factor into that process.

Asking price is the first thing many buyers look at when they begin their home search. Knowing where to start when choosing an asking price begins with understanding if you’re in a buyer’s market, with 6+ months of inventory, or a seller’s market, with a low supply of homes for sale. Buyer brokers, lenders and the buyers you’re marketing too can all see the same data you can. If your home is priced too high for current conditions, buyers may skip looking at it, appraisers may value it lower than your asking price and lenders may choose not to lend the at asking price.

Location is the next big search option when buying a home. While you can’t do anything about your home’s location, there are things you can do to offset a home in a less than desirable location. Updating your landscaping, adding privacy barriers for sound and unsightly neighbor’s yards and making your home the best on the market in its area, can go a long way toward swaying a buyer’s attention away from the location. This leads us to the condition of the home.

The condition of your home will be a large determination on your final sales price. Having your home it its best condition possible can help you beat out the competition that doesn’t take the extra steps when listing their home for sale. Consider adding fresh paint, inside and out, cleaning or replacing carpets, updating kitchens and bathrooms, adding curb appeal and cleaning your home from top to bottom. Staging is also a great way to set your home apart. Most importantly, make any small repairs that are likely to catch the eyes of a discerning buyer.

If your home sits on the market for several weeks without much traffic and no offers, it’s a pretty sure bet it’s got something to do with the location, condition or price. Re-evaluate these factors and make changes accordingly.

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Sandi's Hot Home Listing

226 San Andres Road, Corrales

Price: $509,000 Beds: 3 Baths: 3 Square Feet: 2,725

Exquisite Custom Corrales Home nestled on .80 acres w/BREATHTAKING GROUNDS & VIEWS! This beautiful home offers a functional open floor plan w/radiant heat, 2 fireplaces, soaring ceilings, vigas, latillas, bancos & nichos. Lovely Open Kitchen is a Chef's delight w/upgraded appliances, ample countertop space, & kitchen island.

View This Listing

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Home sales are up again nationally for August. In fact, they are far above the 2014 numbers for the same time period. Prices for homes also continued their climb nationwide. The summer real estate market looks strong. Will it last? Maybe. If you are considering selling your Albuquerque home, this might be the best time. It may be a few years before we see sales at the top of the market again.

If you're considering selling but you're not sure now is the right time, call the Sandi Pressley team and let us take the time to show you what your home is worth. If you want to get an idea on your own, visit our home valuation site for a free, no-obligation estimate.

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Sandi's Hot Home Listing

6246 Iris Rd NE, Rio Rancho

Price: $375,000 Beds: 3 Baths: 2 Square Feet: 2,690

Incredible custom, private courtyard, half acre lot, high end finishes, master bedroom split floor plan! Huge windows, great room with vigas, custom kiva, tile flooring, radiant heat AND furnace, refrigerated air, water softener, skylights, nichos. Featuring a raised dining room with stacked stone fireplace!

View This Listing

 AND HERE'S YOUR MONDAY MORNING COFFEE!!

Are you looking for a home valuation and wondering where you can get accurate information? A lot of home owners in today's market look to third party sites like Zillow to find what they're looking for. In fact, Zillow's Zestimate is ranked as the number one consumer tool used to determine a property's value. Zestimates are easy to use but in truth, they can be grossly inaccurate. The sad truth is, many home owners take the Zestimate as the full picture of their home's value. These values can often be off by as much as 20% or more. When you're looking to make an important decision, like a selling price or whether or not to refinance, this disparity can be a game changer.

Here is our advice. Zillow is great as a tool to get a ballpark idea of your home’s value but, there are many factors that go into determining your home's value Many of these factors are hyper-local and require in-depth knowledge of the area in which your home is located. Zillow estimates also don't take into account the condition of your home or amenities in your community. Only a real estate professional who is familiar with your area can really give you specifics like this.

Value My Albuquerque Home has everything you need to find out the value of your home. This website will provide you with an instant home valuation. If you need an extremely accurate look at your home's value, say for a refinance or to prepare to list your home, The Sandi Pressley Team can give you a no-obligation home valuation based on the local information that applies directly to your home. Call us today for your free home valuation.

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Sandi's Hot Home Listing

7000 Fairfield Greens Ct. NE, Albuquerque

Price: $598,000 Beds: 4 Baths: 4 Square Feet: 4,905

Exquisitely Appointed Custom Home in Tanoan community-Dream home offers Elegance,Luxury & Lush Landscaped Bkyrd! With over 4900SF, the open floorplan offers 4BDRMS+Private Suite 1st floor, offers access to private single garage, ¾ BATH & access to kitchen. 2 breathtaking living areas w/wet bar & cozy FP, formal dining & LOFT used an upstairs living area which opens up to a deck to relax or entertain.View This Listing

AND HERE'S YOUR MONDAY MORNING COFFEE!!

We are asked often if the state of the market in real estate today is setting us up for another housing bubble like that of recent years. The answer is not an easy one. A NAR economist recently addressed that question and you might be surprised at what he had to say.

So far in 2015, the spring buying season is performing well. Prices are rising faster than at the beginning of the year or this time last year. Does that mean we're in a bubble? Not necessarily. This is a common occurrence when demand increases at a faster rate than supply.

Existing home sales were up 9% this March compared to the same time last year. We're also seeing more homes hit the market but not quite enough to answer the increase in demand for those homes.

According to the article, "An equilibrium level of supply on the market is considered to be six to seven months; supply has been under five months since December. Looking at every quarter since 1988, when supply was under five months, prices rose 8% year over year on average. When supply was in the equilibrium range, prices went up only 4% on average."

So why isn't this a bubble? The biggest reason is that loosened lending practices made it much easier for buyers to get a loan during the bubble. While rates are still at historic lows, those lending standards have tightened back up. We saw a record number of new loans during the bubble and that's definitely not repeating this time.

This in turn means we are seeing fewer abandoned homes and less flipping of homes. We are also seeing the return of those important first-time buyers. As the economy continues to slowly improve, it is completely normal, even expected, for home prices to improve. Owners will start seeing the benefit of selling and list their homes and will also encourage new home builders to get into the market again.

If you want to know more about the home sales activity in your area, contact a member of the Sandi Pressley team today.

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Sandi's Hot Home Listing

13804 Spirit Trail Place NE, Albuquerque

Price: $629,000 Beds: 5 Baths: 4 Square Feet: 4,935

Exquisitely Feng Shui Home built by ULTIMA HOMES. This Custom home showcases dramatic DOUBLE spiral staircase. With over 4900 SQFT, this dream home offers sophistication & Luxury! Meticulously built-this home features stunning raised ceilings, arched accents, gleaming oak hardwood flooring are but a few. Huge gourmet kitchen w/just installed Hi end granite counter/kitchen island thru-out & stainless steel appl-chefs delight! View This Listing

AND HERE'S YOUR MONDAY MORNING COFFEE!!

A recent NAR study reveals something most people probably already suspected, 85% of home searches online are done on a mobile device. What does that mean exactly? Most home searchers are looking for their next home purchase from a smart phone or tablet. This fact makes it far more important than in recent years, for a real estate broker to have a website that is optimized for mobile devices. Sadly, a significant number of real estate professionals have yet to make that change, leaving visitors frustrated by size distortions, cumbersome pages and sites that simply do not work.

When you're ready to search for Albuquerque real estate, including the surrounding areas, you can rest assured that the Sandi Pressley Team website is ready for you! Our search pages are fully optimized for mobile devices and designed with our customers in mind. From our website search page AlbuquerqueHomeSolutions.com you can perform a basic search by area, price or number of bedrooms or bathroom. You can also dig deeper and perform an advanced search for things like high school district, year built, whether or not a home is bank owned or has a pool. If you have questions about a specific home or area you search on our mobile website, give our team a call and we'll help you set up a custom search to find exactly what you're looking for.

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Sandi's Hot Home Listing

41 Cienega Canyon Road, Placitas

Price: $325,000 Beds: 3 Baths: 2 Square Feet: 3,110

Fantastic Passive Solar Home offering Bright, Light & Open Floorplan. Spacious Kitchen w/ample counter & cabinet space opening to Greatroom. Passive Solar features include Trombe Wall allowing maximum passive solar benefits. View This Listing

AND HERE'S YOUR MONDAY MORNING COFFEE!!

The Home Ownership Path

The path to owning a home can be tumultuous.  With the right help though, it can also be one of the most exciting times of your life.  Here are some common obstacles along the way and how to avoid them.

Step 1 Preapproval – The first step in the path is to get a preapproval letter from your lender.  If you can’t qualify, work with a lender to find out what you need to do to clean up your credit to get that preapproval. Many buyer brokers won’t even show homes to a buyer who isn’t preapproved.

Step 2 Finding The Right Home – You have a few choices when shopping for real estate.  A significant portion of buyers start their search online.  Many homes listed on 3^rd party websites can show outdated or inaccurate information.  Even if you start your search online, use a reputable real estate broker to help you find a home that meets your needs and falls in your desired price range.

Step 4 Making an Offer – The paperwork involved in a real estate transaction has grown exponentially in the past decade.  Making an offer is the first step to owning the home of your dreams and offering too little or leaving details out of your offer can mean losing that opportunity.  Having a professional who understands this process and the documents that go with it is the key to getting the home you want for a price that’s fair to both parties.

Step 5 Getting to Closing – Think of the closing table as the finish line in the race to owning your own home.  Inspections, repairs, contingencies and documents are all things that could potentially be stumbling blocks for your deal.  Let your broker navigate that path and help you get to the closing table with your sanity intact. 

The ups and downs of a real estate transaction can scare away some buyers but if you have a professional on your side, it can be a rewarding experience. 

Have A Wonderful Week!

SANDI’S HOT HOME LISTING!

2700 Vista Grande Drive NW #114

Price: $595,000     Beds: 3    Baths: 2.5   Sq Ft: 3,970

INCREDIBLE & RARE BLUFF LOT RESIDING ALONG THE RIVER W/Unobstructed views of the City, Bosque, Rio Grande & Mountains. This bluff lot offers unsurpassed sensational views-will not find more breathtaking views anywhere ceiling to floor windows from living, dining, kitchen & Master-Suite showcases phenomenal Views!

View this listing

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Sandi has been working Albuquerque real estate for over 30 years.  One thing that never seems to change is that an overpriced home is unlikely to sell. Not only does overpricing cost a seller sometimes thousands of dollars, they also often sit on the market longer than if they had been priced appropriately from the start.   

You may ask yourself why a seller would take a chance that might sabotage their ability to sell their home in the shortest amount of time and for the highest price the market will bear.  It doesn’t make sense but it happens all the time. 

While a listing agent will make a recommendation on the listing price, in the end, the seller makes the decision.  They often feel that a higher starting price might give them more wiggle room to negotiate but in the end, the market usually speaks loud and clear, either with no offers or several extremely low offers that reflect where the price should be. 

Just in case you needed a reason, here are four bad reasons to overprice your home. 

Reason #1 You think you know the market

If you truly know the market, then your agent, the buyer broker, the lender, the local appraiser and other sellers who recently sold or have homes listed, know less about it than you do. 

There is always a chance that a cash buyer is out there looking for exactly your home and will make you an offer but I wouldn’t hold my breath.

Reason #2 You want to be in control.

If you’re the type of seller who likes to be in control, there is a chance you might give your real estate broker a happy smile when they recommend a sales price but then insist that your list price be higher.  This tactic may make you feel like you are in control but when low-ball offers begin rolling in, or worse, no offers at all, you will quickly lose that feeling.   

Just keep in mind that you are not in control.  The market is.  Buyers are.  If you overprice, you are basically telling your broker that you are in no hurry to sell and can wait for the right buyer to come along.  You’ll likely end up lowering the price later anyway. 

Reason #3 You're hiding something

You may think overpricing will help you if you owe more than your home is worth.  The fact is this will be revealed when the preliminary title search is run and is likely to scare off any potential buyer.  Honesty is always the best policy and giving your listing broker all the information up front helps them determine if listing your home is a worthwhile venture for you. 

Reason #4 You have unrealistic expectations

Sellers can have a strong emotional attachment to their home, especially if they’ve lived there since childhood, or if they’ve put a lot of money and sweat equity into it.  Unfortunately, sweat equity, emotional attachment and expensive upgrades don’t usually translate to higher sales price.  There are some upgrades that have better return on investment but if you’re expecting to recoup the $40,000 you spent closing in your 3 car garage, you’re in for a big surprise. 

Overpricing your home is a big risk to take and your agent knows it.  If you are in the market to sell your home in the shortest time possible and for the highest dollar amount the market will bear, listen to your listing broker and price your home accordingly.

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Sandi's Hot Home Listing

4412 Woodrose Rd. NW Albuquerque

Price: $309,000   Beds: 4   Baths: 3.75  Square Feet: 3,040

Lovely Popular Sivage Home featuring 4BDRMS + Loft AND Office/4 Baths (All updated 2010). With 3040 SQFT, this home showcases spacious and functional floorplan. New Carpet MAY/2015 . Sunny Gourmet Kitchen boasts updates with stunning granite counters/island(MAY 2015), stainless steel appliances and cozy breakfast nook! View This Listing

Here's Your Morning Coffee

Mortgage rates remain at historic lows so first time home buyers are making the move to buy now. If you’re among this group of buyers, these tips will help you make the most of your real estate dollars as you make your first home purchase.

How Much Can You Afford

The most difficult part of buying a home is often being able to tell the difference between what you can afford and what the bank says you qualify for. Banks will often lend a much higher amount than might be affordable. Mortgage calculators help but can be inaccurate without closing costs and other unexpected costs. To truly understand affordability, start by running the numbers.

What Can You Pay Monthly

Before you talk to a lender, you must know how much you can spend on a monthly mortgage payment. Financial experts recommend keeping that amount below 25-30% of your monthly income. This number is often too high for some when figuring in higher utility costs and putting money aside for maintenance of their new home. Contact a local real estate professional or utility service provider to find out average utility costs for the size and type of home you’re considering. Keep in mind, in some climates, summer and winter utility costs can vary widely from spring and fall. You also want to keep in mind, small changes in how you live can have a big impact on your cost of living. For example, a longer commute, even a slight change, can add up to higher fuel costs.

How Much Should You Put Down?

Next on the list is to determine how much you should put as a down payment. You’ll be much more appealing to lenders if you have enough for 20% down but you also need to consider expenses like appraisals, inspections, closing costs and movers. Borrowers with less than perfect credit can expect to pay a higher rate or higher down payment in order to secure a loan. If you’re unable to save up 20% for a down payment, don’t worry. Lenders have plenty of programs available, especially for first time home buyers, that require little to no money down.

What about PMI

PMI or Private Mortgage Insurance is a policy the lender uses to protect themselves with borrowers who are considered risky. Rates for PMI vary by lender and can add a significant amount to your monthly payment. Some loan programs require PMI until you’ve put a certain amount toward your principal balance. Some programs require it for the life of the loan. If your down payment is less than 20%, you’re most likely going to be paying PMI. Talk to your lender about rates and requirements.

Paying Interest

Interest rates can be the deal breaker in many situations. A higher rate, even slight, can have a significant impact on your monthly payment. Work with your lender to figure out what options you have to lower your interest rate. The amount of interest you end up paying over the life of a 30 year loan can be staggering so make sure that rate is as low as it can go. Now that you understand the costs involved in buying your first home, contact your lender and let them know what you can afford. They’ll get you prequalified so you can start searching for your dream home.

Have an Awesome Week!

Sandi’s Hot Home Listing

13804 Spirit Trail Place NE

Price: $629,000 Beds: 5 Baths: 4 Square Feet: 4,935

Exquisitely Feng Shui Home built by ULTIMA HOMES. This Custom home showcases dramatic DOUBLE spiral staircase. With over 4900 SQFT, this dream home offers sophistication & Luxury! Light, bright open floor plan offers 4BDRMS+OFC/4 BATHS/3 car garage. Meticulously built-this home features stunning raised ceilings, arched accents, gleaming oak hardwood flooring are but a few. View This Listing

Here’s Your Morning Coffee!