First-Time Buyer Information

There are a number of things to consider when purchasing a home, particularly for first-time buyers. Keep in mind the following "ABC's" of homebuying, to help ensure a smooth real estate transaction:

Area

Area

Know the area! Which neighborhood is right for you? It is important to be familiar the with neighborhoods and communities that make up the Albuquerque area, as each has its own amenities, lifestyle, and personality. Some questions to consider in selecting an area might be:

• What style and age house do I want?
• Is proximity to public or private schools important?
• What size lot do we need?
• Where is my job located, and what commuting time is acceptable?
• What do we want the covenants to permit or restrict (animals, home occupations, additional structures, etc.)?
• How close do I want to be to shopping, entertainment, etc.?

Tony can help you decide which areas and neighborhoods are most likely to provide ideal homes for you, based on considerations like those above, and one other important criterion: PRICE.

this leads us to "B" of our homebuyers' "ABC's":

Be Pre-Qualified!

Before selecting "your house," it's important to know how much you can afford to pay. Unless you are among the happy few who can pay cash for a new home, this means qualifying for a mortgage. Your down payment plus the amount you qualify to mortgage sets the upper limit for homes you can afford to purchase. This website offers convenient mortgage calculators to give you some idea of what kind of payments you can expect for certain mortgages, and these are a good start.

But to avoid the disappointment of "falling in love" with a particular house, only to find out you can't qualify for the payments, as well as to maximize your negotiating power with the sellers once you have selected a house, it is best to formally pre-qualify with a reputable lender. A complete loan pre-approval can make your negotiating stance even stronger. You can pre-qualify, or even apply online with Superior Mortgage Services, just by clicking on our "Mortgage Info" button above, or contact Tony for more details.

Choose a Home!

So, you've settled on the neighborhoods that interest you, and determined how much you can afford. Now it's time to choose your new home! Here, too, an experienced agent can save you lots of time, and ensure that you locate the best house for your needs. To make your house-hunting as efficient as possible, there are a few things to keep in mind:

1. Decide, in agreement with any co-decision-maker(s), what are your absolute requirements in a house. Is that 4th bedroom a necessity? How about the workshop, or the "real adobe" construction, etc.? Make sure your buyer's agent understands all your real needs.
2. Make a list of all the other things you really want in your home, and make sure your agent understands these, too. If you really want, say, a pool, but would consider a home with a yard suitable to add one later, don't restrict your agent to showing you only properties already set up for you to dive in!
3. Consider other things that would be a "bonus" in a home, and let your agent know that these would be nice "pluses."
4. Be willing to compromise on categories 2 and 3! Particularly for first-time buyers, the absolutely "perfect" home probably isn't out there, but you can come pretty close if you've let your broker know what you really need and want.

Drive a Hard Bargain!

Once you've found your dream house, or one that's pretty close, it's time to put together a purchase offer. Again, Tony's experience and expertise will be invaluable in helping you avoid unwittingly overpaying for a property, or buying a "fixer-upper" without intending to do so. Tony's familiarity with the local market enables him to properly advise you about the home's market value, and he has many years of experience in successfully negotiating favorable contracts that protect his clients. But there are also many other issues in designing your purchase offer. For example, do you need a Lead-based Paint Disclosure? What is customary regarding splitting of closing costs? Is an SIR satisfactory, or should you have a staked survey? What inspections should you require? As your agent, Tony can advise you about these and other issues, based on your specific needs and the exact property in question. Just a few of the issues to be addressed on your purchase agreement include:

• Purchase price
• Down Payment and earnest money
• Financing Terms
• Contingencies
• Survey type
• Appraisal
• Title Insurance, title binder, and exclusions
• Types of inspections required:
  • Structural inspection?
  • Whole-house inspection?
  • Home Warranty?
  • Lead-based Paint inspection?
  • Termite and pest inspection?
  • Radon test?
  • Well potability?
  • Well equipment tests?
  • Septic inspection?
  • Pool or spa equipment inspection?
• Repair allowances
• Closing and possession dates. Depending on the situation, any of several possibilities may be negotiated:
  • You get possession of the house on the date of closing
  • You get possession of the house on the date of funding (usually a couple of days after closing)
  • You move into the house prior to closing, and pay rent up until the date of closing
  • You close on the house, but wait to move in, with the seller retaining possession of the house for some period of time, and paying rent to you during that time.
• Seller's Disclosure
• Covenants and Restrictions

Escrow

Once you've negotiatied the contract, your agent's job is far from over. Through this time, Tony and his staff will be ordering and overseeing the inspections, discussing with you the results of the inspections, negotiating any needed repairs, and ascertaining that repairs properly handled. He will also confirm that the appraisal, title binder, and survey are completed, reviewing any possible problems with you, and handling any necessary negotiations that may crop up as a result of these investigations. Just before closing, you will have a final walk-through, to confirm that the property is in satisfactory condition before you close.

Final Details

In the days just prior to closing, certain final details will need attention. Electric, gas, and water service need to be scheduled to be in place before closing. Your Homeowners' insurance policy must be put into effect, and any mortgage or title company requirements complied with. Tony will be able to help you throughout this process to try to avoid any last-minute glitches.

Going Home

At last the big day has arrived. It's time to close on your new house. Tony will be there with you at closing, to help explain the closing documents, make sure that all costs, proprations and escrows have been properly accounted for, and that all final paperwork is properly in place. An then, it's time to GO HOME for the first time.