Buying a home is a complex process that requires careful preparation. Months before you begin your search, take steps to get ready. This article outlines the key steps for successfully purchasing your dream home in Albuquerque. Starting early and planning thoroughly are essential keys to success.
First step in buying a house: pre-approval
Before purchasing a home in Albuquerque, you should get pre-approved for a mortgage. Pre-approval reveals your maximum affordable price range based on factors like your debt-to-income ratio, annual income, and credit score. Lenders usually require a minimum credit score of 620 for mortgage approval. If your credit score is below 620, it’s best to wait, improve your credit, and get pre-approved later when you are in a better financial position to buy a home.
A lender will also ask for two years of W-2s to review your net income history, which is a key factor in mortgage approval. Additionally, avoid taking out large loans or closing bank accounts right before applying, as that may hurt your chances of getting approved. Once the lender has reviewed your income, debts, and assets, they can provide a pre-approval letter.
To find a lender, you have a few options: you can do some quick online research to find options, go to your own bank since they already know you well, or ask a local Albuquerque real estate agent for a recommendation, as they often have connections with lenders. Once you have contacted a lender, you can move on to the next step in the home buying process.
Choosing the right real estate agent
When finding the ideal home for sale in Albuquerque, choosing an experienced real estate agent like Sandi Pressley is crucial for making the process easier. Sandi and her team will guide you through the entire process, from finding a home to moving in. You can count on the Sandi Pressley team to make buying your first home a complete success. You can check out what all of her happy clients have said about working with the team.
When your offer gets accepted
Once your offer is accepted, you must make a good-faith deposit, separate from the down payment you provide to your lender. If this is your first time purchasing a home, consult with your lender about a Federal Housing Administration (FHA) loan, which allows you to finance a home with a down payment of just 1% to 3% of the purchase price after making the good-faith deposit.
Getting an inspection before closing is typically the next step in the home buying process, and most lenders require one.
Making it to the settlement
Once your offer is accepted, inspections and mortgage approvals will begin. Expect 40+ days for inspections, loan processing, and setting a closing date. This can be stressful, but an experienced agent and lender can make the process go more smoothly. Follow their guidance closely to ensure you can move into your dream home without issues.
If you want to learn more about how The Sandi Pressley Team can help make your home buyind dream a reality, contact us today!
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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.
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