Buy a Home in Taos, New Mexico
Our team of local experts is ready to guide you through the property-buying process. We are committed to fast, professional and courteous service to help you understand and feel at ease throughout the buying process. Our trained and licensed agents specialize in the Northern New Mexico real estate market and are prepared to find the right property for sale in Taos and surrounding areas, and get the best price.
What Type of Mortgage is Best For a First-Time Home Buyer?
The best mortgage for you as a first-time home buyer is the loan for which you're most qualified. And that depends on a number of factors, including your credit score. With a credit score of at least 580, you may find that a loan backed by the FHA is your best option. With a credit score around 620 or higher, a conventional loan might be a better option, and could require an even lower down payment of 3%.
Searching For the Best Lender:
You could save thousands of dollars by shopping around. In a 2015 report, the Consumer Financial Protection Bureau found that 77% of consumers apply to only one lender or broker when seeking a mortgage. By shopping several different lenders, borrowers could save more than $3,500 in just the first five years, according to the CFPB.
When should I prequalify for a home loan?
Some people get prequalified when casually looking at homes, or when they want a general idea of their future budget. Keep in mind that a prequalification isn’t always necessary. If you’re ready to purchase, you can skip this process altogether and apply for a mortgage preapproval instead.
When should I get preapproved?
The best time to get preapproved is a few weeks or months before purchasing. You shouldn’t get preapproved too early. In most cases, a preapproval letter has an expiration date — typically, about 30-60 business days, depending on your lender. Although, many will extend your preapproval, provided your finances haven’t changed.
You should also get preapproved before meeting with a real estate agent and actively looking at homes. If you don’t know your budget, you could potentially make an offer on a home that you can’t afford.
Plus, a preapproval provides additional information to help you prepare for a purchase. You’ll not only receive information about loan terms and loan amounts, but also estimates regarding interest rates, down payment amounts, and monthly mortgage payments.
Begin Your Search:
If everything above is in order, then it’s time to begin the fun part! Take some time to determine what your new home will look like by asking yourself these questions:
• How many floors do I want my home to be?
• How many bedrooms and bathrooms do we need? How much square footage is manageable?
• Will I need flex or bonus rooms?
• Do we want all of the bedrooms in one area, or spread throughout the house?
• Do I want an open floor plan? A library? A formal dining room?
• How much front and backyard space will we need?
Be sure to also organize the features, so if you have to choose one over the other, you’re not forced to make a quick decision. You can also group your responses into “Must Haves, Wants, and Don’t Want” categories.
10 Things To Do Once Your Offer Is Accepted:
1: Deposit Earnest Money
The very first thing that follows an accepted offer is the depositing of your earnest money. This is the cash (usually 1 to 2 percent of the sale price) you deposit into your buyer agent broker’s account to show the seller you are serious about getting the deal done.
2. Schedule Property Inspections
Home inspections are a critical part of moving the home buying process along and serve as a great protection for buyers. As the buyer, you need to hire an inspector to come look at the home to make sure there aren’t any major defects that need repairing before you buy the home. A general inspector will look at the HVAC, roof, structural integrity, and find other noticeable repairs that need to be completed.
3. Submit All Mortgage Lender Documents
You submitted a few documents to your lender in order for them to preapprove you for a loan. Now, they will ask for more. This will include bank statements, credit card statements, pay stubs, and more.
4. Take Out A Homeowners Insurance Policy
You are required to take out a homeowner’s insurance policy before finalizing the purchase of the home. There are a number of companies to choose from, so go online and do a little research to see which one is right for you.
5. Conduct an Appraisal
Your lender needs to make sure the home is worth the amount of money they are lending you to buy it. To achieve this, they send an appraiser to the home to determine what it is worth. If the appraiser says the home is worth the amount you are paying for it (or more), things move along smoothly. If the appraiser says the home is worth less than what you have agreed to pay, things get a little complicated. You might need to come up with extra cash to cover the difference between the appraised amount and the amount you agreed to pay. Or, you can ask the seller to reduce the sales price based on the appraisal.
6. Review Your Title
When you receive your new title binder, be sure to look over it carefully. The title is the legal document that details specifics about the property, including who owns it. The critical thing to look for is if there are any claims on the title that could affect the purchase of the property.
7. Transfer All Utilities
If you’re the buyer, you will need to call the local utility company and make sure they change the name on the account for that home from the seller’s to yours. The seller will take their name off the account on closing day.
8. Schedule Home Repairs
If the repairs are not urgent, You can have the seller credit you some money toward your closing costs. Urgent repairs will need to be negotiated and scheduled prior to closing.
9. Conduct A Final Walkthrough
Right before the closing, you and your real estate agent should do a final walkthrough of the house. This is a formality just to make sure everything is as you remember it from the inspection.
10. Schedule Your Closing
The purpose of a closing is to finalize the sale by reviewing and signing all the necessary documentation. The seller, buyer, their real estate agents, and the title company representative all usually attend the closing.
