Buying a home in Albuquerque is a massive financial step, no matter how prepared you might be. Even though buying a home comes with liability, increased cost of living, unexpected stress, and more time commitments, the rewards for buying a home are just as great. Owning a home in Albuquerque is an opportunity to build wealth in many ways.
Here are 5 basic financial tips to help you get started on the right foot when buying a home in Albuquerque.
Prepare in Advance
If you’ve been watching the Albuquerque real estate market, you probably have noticed how quickly homes come and go. This might entice you to jump into a home before you’re truly ready. That’s why you should prepare before buying a home.
You should get your finances in order before you start the buying process. This includes paying down outstanding debts, setting an accurate budget for daily living, and having a clear picture for what you can truly afford. Once you’ve done this, take the time to save for a larger down payment. Zero-payment down loans and small down payment loans are out there, but they come with many strings attached. There will always be opportunities to buy later, when you’re ready.
More Square Footage Equals Higher Cost Of Living
Are you looking to buy a larger home in Albuquerque? If so, keep in mind that not only the monthly mortgage payment will be higher, but these bills will increase as well:
- Homeowners Insurance
- Heating and cooling costs
- Larger heating and cooling unit maintenance
- Water for home and lawn maintenance
- Larger appliance repairs
- Property taxes
- Home furnishings and renovations
Budget For Unplanned Repairs
Every home needs repairing at some point. You never know what will break, so you need to be prepared for the inevitable. You will need to plan on high repair costs as cooling, watering, plumbing, electrical, roofing, etc. While planning your finances for purchasing real estate, add into your budget a savings for home repairs.
Regularly Inspect Major Appliances
As they say, an ounce of prevention is worth a pound of cure. Set aside more room in your budget for regular inspections of major appliances like water softeners, water heaters, home heating and cooling units, and more. Regular inspections and preventative maintenance will save you money in the long term.
Build Equity With Larger Mortgage Payments
A 30-year fixed rate mortgage is standard practice for home buying. But just because everyone else is doing it, doesn’t make it the smartest route to take in purchasing real estate. Over 30 years, you’ll pay a lot more interest and build equity much slower. The ideal route for purchasing a new home is with a 15-year fixed rate mortgage (unless you have cash, then forget financing!). If that isn’t possible, making an additional mortgage payment at least once a year can help to dramatically lower the interest you pay on the overall loan.
Buying a home in Albuquerque can be the best financial decision of your life, as long as you’re prepared in advance for this investment.
Make sure to 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. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.
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Contact the Sandi Pressley team for additional details!
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