The Home Buying Process

Whether it's your first home, your forever home or you are looking for a vacation/investment property, the team of experienced brokers at Blue Skies Real Estate will guide you through the process of finding and purchasing property anywhere in beautiful Lincoln County, New Mexico.  Rest assured we are there for you every step of the way - sharing resources and knowledge of our market.

Steps to Buying a Home

Step 1: Check Your Credit Report & Score

Before getting a mortgage or any kind of loan, you should always check your credit score. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting Annualcreditreport.com. Scores range from approximately 300 to 850.  Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score. You can also check your credit score for free at www.creditkarma.com.

Step 2: Figure out How Much You are Comfortable Spending

Start Online using one of several mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an appraisal, inspection, etc.) plus the costs of remodeling and furniture. There are loans available with little to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs and other fees.

Step 3: Find the Right Lender for You

To find the right mortgage lender it’s best to shop around. Get recommendations from your friends and family and your REALTOR®. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.

Once you have the right mortgage lender, make sure to get a pre-approval letter. The lender will pull your credit report and get more information about you. They will also need your most recent income tax returns, income statements, and possibly more documentation to verify that you are financially able to make a purchase. By submitting these documents and getting a pre-approval letter in advance, your offer will look more appealing than other buyers since your financing is guaranteed.

Step 4: Look for the Right Home

Make a list of the things you want in a home or property. How many bedrooms and bathrooms; how important is a kitchen, closets, outdoor spaces?   Share your thoughts with your Broker so they can focus their efforts on the perfect property for you.

Step 5: Make an Offer on the Home

Now that you've found the home you want, consult with your Broker on what type of offer to present...the offer price isn't the only thing of interest to a Seller.  Sellers love cash buyers as this often removes the concern of whether the home will appraise for the contract price.  Are there other terms that you can include that will make your offer stand out to the Seller - this is where our experienced Brokers can provide you with ideas and suggestions to make your offer successful.

Step 6: Get the Right Mortgage for Your Situation

Remember to ask your mortgage lender or mortgage banker lots of questions about which mortgage is right for you and your situation.  Can you minimize your down payment?  What are the fees associated with your loan and when are they paid?  Can you get a better interest rate and if so, how?  When should you lock in your loan rate?  A good mortgage lender will know the questions you should be asking and provide you detailed guidance from application to closing. 

Step 7: Close on Your Home

Be sure you talk to your mortgage lender and know all of the costs involved with the closing so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.

Step 8: Move In!

Congratulations, after a smooth transaction and closing you are ready to enjoy your new home!   Let's keep in touch, we love to hear how your new home (and maybe new lifestyle) is working out!