Buying a home in Albuquerque can be confusing. And if this is your first time buying a home, buying a home can really send your head spinning. There are so many new words to learn when it comes to buying a home. Your real estate agent may understand these terms, but do you? You certainly don’t need to know every single term, but there are a few that you should take note of, particularly when it comes to closing on your home in Albuquerque. Here’s the 5 most important closing terms you should know.- Down Payment – Just like buying a car, this is the amount of money you pay up front to secure your mortgage. Most mortgage lenders require between 3% – 20% down payment. In the case of VA or government assisted loans, this amount can be less.
- Private Mortgage Insurance (PMI) – You may be required to pay for private mortgage insurance when you take out a loan if you put down less than 20%. PMI protects the lender in case you end up foreclosing on your home.
- Annual Percentage Rate (APR) – APR refers to the total cost of taking out a loan. It can include broker fees, interest rate, points, and others.
- Loan Estimate (LE) – A loan estimate deals with the estimated closing costs, along with the terms of the loan that you agreed to.
- Closing Costs – Closing costs are paid by both the buyer and seller. These costs can cover application fees, property fees, title examination, title insurance, attorney charges and settlement documents.
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.
HOT HOME LISTING OF THE WEEK!
6448 Kola Court NW, Albuquerque, NM 87120 $399,000
4 Bedrooms / 3 Bathrooms (2 full, 1 half) / 2587 Square Feet
Exceptional custom home! Cul-de-sac location and huge lot! 4BDR/3BA/3CG with master bdr split plan. Private owner’s suite on its own wing features tray ceiling, garden tub, sep shower, double sink vanity, walk-in closet & linen closet. REFRIG AIR! Great room & dining room share a cozy two-way fireplace and are open to the custom kitchen with great entertaining space! Kitchen features beautiful cabinets with crown molding, recessed lighting, granite countertops, backsplash, bkst bar, tile flooring, walk-in pantry! Oversized backyard with backyard access, extended covered patio, trees, shrubs and walled for privacy. Perfect for summer BBQs and enjoying the best of NM weather!!
Contact the Sandi Pressley team for additional details!
Get your Morning Inspiration with the Sandi Pressley Team
