Real Estate Information

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Buying a home in Albuquerque should be an investment that gives you safety and security, along with financial security. Before you buy a home in Albuquerque, you should make sure you can afford the mortgage and that it fits in your budget.

Prepare a Detailed Budget

The standard rule of thumb says that you can afford a home that costs 2 to 3 times your gross income for one year. In other words, if you earn $100,000 in a year, you should be able to afford a home between $200k to $300k.

There is one problem with this rule. It doesn't factor in your monthly expenses and debts. If we use our previous example of $100k per year income, and you have $1000 monthly debt payments, this leaves you with less money to pay the mortgage.

You should prepare a family budget that takes into account your ongoing monthly bills for everything — credit cards, car and student loans, lunch at work, day care, date night, vacations, and savings.

Now you can see what's left to cover the costs of owning a home, such as your mortgage, property taxes, insurance, maintenance, utilities, and community association fees, if applicable.

Factor in Your Down Payment

Having enough for a down payment is also an important factor to consider. It's simple: the higher the down payment, the lower your monthly mortgage costs will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which protects the lender if you default and costs hundreds each month. That leaves more money for your mortgage payment.

The lower your down payment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

But, if interest rates and/or home prices are rising and you wait to buy until you accumulate a bigger down payment, you may end up paying more for your home.

Consider Your Overall Debt

Lenders generally follow the 43% rule. Your monthly mortgage payments covering your home loan principal, interest, taxes and insurance, plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 43% of your gross annual income.

Here’s an example of how the 43% calculation works for a home buyer making $100,000 a year before taxes:

1. Your gross annual income is $100,000.
2. Multiply $100,000 by 43% to get $43,000 in annual income.
3. Divide $43,000 by 12 months to convert the annual 43% limit into a monthly upper limit of $3,583.
4. All your monthly bills including your potential mortgage can’t go above $3,583 per month.

You might find a lender willing to give you a mortgage with a payment that goes above the 43% line, but consider carefully before you take it.

Use Your Rent as a Mortgage Guide

If you currently are renting, then you can use an online calculator to compare the costs of renting vs owning a home to see which makes the most sense for your financial situation.

If you’re struggling to keep up with your rent, buy a home that will give you the same payment rather than going up to a higher monthly payment. You’ll have additional costs for home ownership that your landlord now covers, like property taxes and repairs. If there’s no room in your budget for those extras, you could become financially stressed.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Buying a home in Albuquerque can have moments that can get emotional. Yet it doesn’t need to be that way. If you stick to a plan and follow the lead of your agent, you can get through this. Although your agent may offer advice, it’s ultimately you that needs to make the final decision.

Here are six tips for negotiating the best price on a home.

Get Prequalified for a Mortgage

Prequalifying for a mortgage does two things – it shows the seller that you’re serious about buying their home and that you can afford it. This also put you in the lead of those who don’t take this important first step.

Ask Questions

Questions are a good thing. Ask all the questions you want. You need to know many things about the home and seller you’re interested in. What's the seller's motivation for selling? What is their financial position? Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.

Work Back From a Final Price to Determine Your Initial Offer

Decide beforehand what you're willing to pay. Then you can work back from that number to make an initial offer. If you bid too low, you may offend the seller. If you bid too high, you may end up spending more than you need to.

You agent can work with you to compare homes in area that have sold recently to come to a fair initial offer.

Avoid Contingencies

Sellers don't like taking chances. Nobody does for that matter. So keep the bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Try to keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.

Remain Unemotional

Remember that buying a home is a business deal. Treat it that way. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.

Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.

Don't Let Competition Change Your Plan

Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions — such as waiving an inspection — that aren’t in your best interest.

Search for your dream home in Albuquerque with our easy to use home search. Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Spring is coming up soon, and so are the spring cleaning projects. One of the tough spots can be the kitchen, especially if you cook regularly.

Even if you don't clean the whole house, it can feel like you did after tackling the tough spots in the kitchen. That can definitely be the case if you love to cook and bake.

Here are four things all home chefs should focus on for a cleaner, more organized kitchen:

Cleaning the Cracks and Crevices of Appliances

The devil is in the details they say, and that is certainly true for appliances. The nooks and crannies of your appliances can be tough to keep free of grime, even if you do wipe them down regularly.

These spots include knobs, grills, exhaust filter on the range, door crevices and rubber linings on the dishwasher and fridge, and the individual parts of small appliances.

You can usually put range grills and filters in the dishwasher. But if you can't, then good old elbow grease and a cleaning brush, baking soda, and soap do the trick. If you have a really grimy range hood filter, you might try boiling it in water with 1/2 cup baking soda. Your appliance knobs could also do well with a soapy soaking, then scrubbing with a brush and baking soda.

Organizing by Zones

You're no doubt used to the way your kitchen is organized. Maybe it's been the same way since you moved in. But have you thought about reorganizing your kitchen according to tasks? Think about what you do in your kitchen every day, from brewing coffee to food prep to washing dishes.

Once you do this, then unload, wipe down, and reload your cabinets, placing items that are used for a similar purpose together (French press and coffee mugs; knives and cutting boards, etc.) in the area where they will be needed.

Eliminating Outdated Staples

Now it's time to check expiration dates. You may be surprised how long that bottle of soy sauce has been in the fridge. Check all the staples in the fridge and cupboard to see if any are expired.

This also applies to dried spices. Spices lose their effectiveness after about a year. Having a fresh supply of spices will make your recipes zing, and will make more room in the cupboard.

To avoid waste in the future and save money now, buy small amounts where bulk spices are sold.

Washing Grocery Totes

Speaking of rancid, when was the last time you cleaned your reusable grocery bags? Studies have found bacteria easily transports from bag-to-food-to-refrigerator, increasing the chances of food poisoning and cross-contamination.

Throw them in the washer or wash by hand with hot soapy water.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Bad habits can be hard to break. It's so easy to start a bad habit since we may not realize it's bad in the first place. When it comes to owning a home, bad habits can be costly. Here's  a few habits that would be good to break.

Taking Long, Steamy Showers

Who doesn't love a long hot shower? It may be good for your body, but long showers build up steam that is also great for mold and mildew. Make sure you run the exhaust fan or open a window during and after your shower. Every few months, make sure to scrub the grout.

Compulsively Buying Bargains

When it comes to household items, it's better not to go cheap. In fact, budget buys might cost you more in the long run. Those dollar paintbrushes may look like a good buy, but they will usually leave annoying streaks, requiring a costly do-over.

And when it comes to buying appliances, spend a little more — especially if you plan on selling your home soon.

Running a Half-Full Dishwasher

Sure, it's nice to have clean dishes every morning. But if you don't do a full load, you're wasting water.

It's true that dishwashers save more water than handwashing. Yet most machines will use the same amount of water no mater how full the load is. In the end, you're wasting water and can cost more on your utility bill.

Mega-Mulching

Don't go overboard with the mulch around your tree, as this can suffocate your tree, causing root rot and inviting invasive insects.

Your trees can add a lot of value to your home. Each one can add $2,000 or more to your home’s value while saving on energy costs. Protect your valuable trees by packing mulch loosely, letting water filter properly toward the trunk.

Going on a Remodeling Rampage

You don't need to launch into remodeling the moment you buy your home, unless it really needs it to be lived in. Take time once you move in to get to know your home and all of it's quirks before you renovate.

For example, lets say you remodel your kitchen, then discover the original layout would have worked better for parties. Or you pain a room your favorite color, only to discover that the natural light makes it not so much your favorite color.

Packratting

It's easy for things to pile up, especially in the garage or shed. There's always that "what if" when it comes to getting rid of things we don't use. Many people use a 6-month or 1-year rule - if you don't use an item in that time, ditch it.

Decluttering can seem like such an insurmountable goal — even though every jam-packed square foot is space you can’t enjoy.

If the task seems impossible, start small.

Just remember: Breaking habits takes time and patience. But it's worth it.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

No doubt, you've already hear about being "pre-approved" if you're planning on buying a home in Albuquerque. Yet many people don't fully understand the process.

What is Pre-Approval?

In short, being pre-approved for a mortgage means that the lender decides if you're eligible for a loan and how much you can borrow. This decision is based on your finances and credit rating.

Why Do I Need to Get Pre-Approved?

Being pre-approved is necessary for a number of reasons. It gives you clearer picture of how much money you need to complete the buying process. The more you put down, the lower your monthly payments will be. You will also get a better idea of how much you can afford for the total price of the home.

Many people make the mistake of thinking that the loan product that a friend used will work the same for them. Even though that's a possibility, it's not safe to assume so. No two loans are alike, just as no two lives and circumstances are alike.

Loan products also have different costs, such as varying lender origination fees. Your loan officer can work with your to learn the costs of a loan and how the loan process works.  This will give you a good idea of what costs to expect.

Knowing these things will make you more comfortable when deciding on a home to buy. It also shows sellers that you're serious about making an offer, giving you an edge over buyers who haven't been pre-approved.

Getting Pre-Approved is Easy

Pre-approval is an easy process, so there's no reason not to do it. You just need to know how much money you make, assets, and debts.

What Will My Lender Need to Check During Pre-Approval?

• Your credit score. Yes, your lender will then have to pull your credit. Don’t worry, pulling your score once shouldn’t affect your score. 
  
• W2s or 1099s
  
• Pay stubs
• Tax returns
• Bank statements
• Account statements
• Your list of monthly expenses

Gathering all these documents can feel like busy work and is typically the hardest part for you. 

If you want to have an idea of whether you’ll get pre-approved before choosing a lender, a good first step is finding out your debt-to-income ratio, or DTI. Your DTI ratio helps a lender understand how much of your monthly income goes to paying debt and what you have left after those debts are paid. You can calculate the ratio by dividing monthly debt payments by gross monthly income.

The lower your debt-to-income ratio is, the better. A lower DTI will make you seem less risky to lenders.

Although each loan product is different, most lenders would prefer your debt-to-income ratio to be at 36% or lower.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.

Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.