Aside from the increasing prices in Las Cruces real estate market, the city is still a popular place to buy a home. The Las Cruces real estate market is still appreciating and is expected to continue the same way for some time to come. Some buyers in Las Cruces will even pay cash for their homes in 2018 – but the large majority will use traditional financing. Here’s our latest Las Cruces Real Estate agent guide to getting a mortgage the smart way.
Don’t overestimate your income
It was big on the news some weeks ago: Unemployment is at its lowest in years and companies are seeing more competition for workers while the cost of replacing them is going up. This means that wages are expected to grow quite a bit in the next year or so. Does this mean you can just borrow more money for your Las Cruces home?
Don’t do it, say the experts. A good rule of thumb is that all of your monthly payments, including your house payment, should not be more than 35 percent of your income before taxes.
From a real estate point of view, buying more of a home than you can really afford is asking for trouble. When your wages increase, make sure that your debt doesn’t increase with it.
Use a Las Cruces Real Estate Buyers’ agent
Buying a home in Las Cruces and in pretty much any city is the biggest investment that people will make in their lifetime. People think that shopping for a home online is easy – but when it comes to negotiating the transaction and ensuring that the home is really what the seller says it is, you need professional help. When you get a loan for a Las Cruces home, you will sleep much better at night with a Real Estate agent in Las Cruces that will guide you through the whole process. Including his expertise and opinion on finding a reputable mortgage officer. Not only that, if you ever decide to sell your home, they will be your best ally.
Buyer soon, and not later
Even after the increases we saw in Mortgages in 2018, rates are still low by historical standards.
Due to economic growth in the U.S., the Mortgage Bankers Association predicts that mortgage rates could go up above 5% in 2019. While It’s just a few tenths of a percentage point, it can make a big difference when you’re considering a loan for hundreds of thousands of dollars. For most people who have been considering buying a home in Las Cruces for the past few years, 2018 will be the year to do it. We may not see mortgage rates this low again for a while.
Lock in that mortgage rate
Sometimes variable interest loans may have their advantages for some buyers, but as low as interest rates are at the moment, it might be a good idea to ask your Mortgage Broker in Las Cruces if they can lock in the rate for the lifetime of the loan. 30 years is a long time and who knows what will happen. Las Cruces real estate prices change, or even mortgage rates can go up or down, but if you have the rate locked, then you’re golden. The key here though, is to be happy with the rate you were able to get and not look back.
Before you go home shopping in Las Cruces – try to get pre-approved for a mortgage. That way you will know exactly what your price range will be. Not only that, you will roughly know what your monthly payment will come out to. Of course, it’s not a requirement to get pre-approved in order to find a real estate agent in Las Cruces and start looking at homes. Las Cruces buyers’ agents encourage home buyers to shop around for their loan and getting pre-approved early in the process. In this Las Cruces real estate market, you can’t afford to let your home fall out of escrow because of an inexperienced Las Cruces Real Estate Agent or mortgage officer.
Make a smart investment
Many Las Cruces Real Estate buyers are now realizing that buying a home is, in most cases, less expensive than renting. Putting money toward a mortgage instead of rent means that you will want to get that money back again in the future when you sell your home in Las Cruces. Unfortunately, while Real Estate is still one of the safest investments available, it is not a guarantee. Talk to your Las Cruces real estate agent about how to avoid the common first-time home buyer mistake of paying too much for your home. Las Cruces Real Estate Agent s are great at picking out those Red Flags.
Don’t mess with your credit
After you’ve put in an offer on your Las Cruces home, the bank will start the process of finalizing your loan. While this happens, you need to avoid doing anything that will cause your credit score to change. It’s common for people to make the mistake of maxing out their credit cards by ordering furniture while the home is still in escrow. This changes your debt-to-income ratio which could make your home purchase fall through.
Keep watching your credit forever
Just because you have closed on your home and moved into your Las Cruces home, it doesn’t mean you should start getting more into debt. You need to continue having good credit in case you need to refinance your home. Same goes for the purchase of a new home. You’re in good shape if you pay your mortgage payments, but paying all of your other debs will ensure that your credit remains in good standing.