Ryan Ferguson
Home Buyers: Are You in the Market for Santa Fe Luxury Homes?

‘Homes for sale!’ How exciting does that sound? Is it time for you to make that really big purchase? Buying a home is generally an extremely challenging task. Think about it…all the steps you have to follow; the tasks, documentation, and requirements…It’s no surprise that you’re worried about making a mistake, and an expensive one at that. Nevertheless, there are also positive aspects to consider that often encourage many people to dip their toes into the real estate market.

Factors to Consider Before Buying a Luxury Home

The first step is to figure out what your long-term objectives are and how homeownership fits into those objectives. Maybe all you want to do is convert all those “wasted” rent payments into mortgage payments that provide you with something tangible: assets. Perhaps you regard homeownership as a symbol of freedom, and you relish the prospect of being your own landlord. Purchasing a property can also be a wise investment. If you pinpoint your big-picture homeownership goals, you’ll be moving in the right direction.

Take note of the following things:

  • Financial health
  • The type of home that meets your requirements
  • The features you’re looking for
  • Assistance with the homebuying process

Financial Health

Conduct a complete financial analysis before obsessing over your dream home or scrolling through pages of online real estate listings held by numerous brokers.

You need to be financially equipped for the purchase and constant expenses of a property. This test informs you whether or not you are ready to take the next step or if you still need a little more preparation time before looking at homes for sale.

The Type of House

There are pros and cons to owning larger investment property; therefore, you need to figure out which type of house will best help your vision come to life. Do you have specific accommodation requests? We can help as we’re continuously working and committed to helping you find your dream home in the perfect neighborhood.

The Features

While it is essential to have some wiggle room on your list, you’re making what might be the most vital investment in your life and you deserve to have your home meet your desires and needs to a T.

Your wish list needs to include everything from the basics, such as location and floor space, to smaller details, such as a clean kitchen with high-quality appliances and bathroom layout.

Browse Through Real Estate Listings to Know What's Out There
Browsing through real estate websites might help you obtain a feel of the availability and pricing of houses that have the features you want.

Assistance with the Homebuying Process

A real estate agent can help you find houses that fit your needs and are within your budget. Next, they meet with you to have a look at the properties.

Once you’ve decided on which house to purchase, the real estate professional can assist you with the full acquisition process, including making an offer, obtaining financing if necessary, and completing the paperwork. A professional agent’s experience helps protect you from any pitfalls that may occur during the procedure.

Real Estate Licenses are Essential
In addition, the majority of agents are paid a commission based on the sale’s profits. It’s critical that the agent you’re working with has all of the necessary real estate licenses.

The Buying Process

Let’s take a look at what you can anticipate from the buyer journey now that you’ve made the decision to go for it. This can be a stressful time, with offers and counteroffers coming at lightning speed; however, if you’re ready for the task (and all the paperwork), you can get through the process without losing your mind. Here’s a quick rundown of what you may expect:

Find Your Dream Home

Search for real estate listings online, work with a real estate agent, and drive around the neighborhoods you’re interested in looking for for-sale signs, among other options for locating properties on the market. Don’t overlook the importance of utilizing a supported browser. Everything revolves around web experience and digital accessibility.

Make queries among your family, friends, and professional contacts, as well. You might be surprised who might know someone who knows someone that could help you.

If you are serious about purchasing a home, don’t go to an open house viewing without an agent who has the necessary real estate licenses and data relating to the property (from the Internet Data Exchange (IDX) program).

Interacting with the seller’s agent before speaking to your own agency is definitely not in your best interest.

Take Care of Financing

First-time homebuyers have a range of alternatives to assist them in getting a house, including those available to every buyer, such as FHA-backed mortgages, and some tailored specifically to beginners.

Several first homebuyer programs need only a three to five percent down payment (rather than the customary 20%) and don’t need a down payment. Make sure to have a look at or think about:

  • Your IRA: Each first-time homebuyer is allowed to withdraw a maximum of $10,000 from their standard or Roth individual retirement account (IRA) without paying a penalty of 10%. (though you still need to pay taxes if you utilize a conventional IRA). This means a couple can take out a total of $20,000 for a deposit for a house ($10,000 from each separate account). Keep in mind that if you don’t pay back the money within 120 days and are not above the age of 59.5, you’ll face a 10% penalty. Furthermore, remember that the withdrawal is subject to income taxes.

  • HUD’s Resource List: Even though the government agency doesn’t give grants directly to people, it does make funding available to groups with Internal Revenue Service (IRS) tax-exempt status for first-time homeowners. Details can be found on the HUD website; HUD oversees the Fair Housing Act (FHA) and its loan program.

  • Native American Options: A Section 184 loan is available to Native American homebuyers. On loans exceeding $50,000, a 1.5 percent loan up-front guarantee charge is required, and a 2.25 percent down payment (for loans under $50,000, it is 1.25 percent). Only principal residences and single-family houses (one – four units) qualify for Section 184 loans. Don’t forget to take note of the interest rate.

  • Your State’s Programs: When it comes to first-time homebuyers who qualify, many states provide financial aid with closing costs, down payments, and expenses to remodel or improve a house.  Generally, income, and in some cases, the size of a property’s purchase price, determine eligibility for these programs.

Make Your Offer

Your real estate agent can help you figure out how much money you want to offer for the house, as well as any stipulations you want to include. The offer is then presented to the seller’s agent, who either accepts it or counteroffers you. You can then accept or keep negotiating until an agreement is reached, or you can choose to sleep on it.

Before you submit your bid, double-check your budget. Closing costs (which run between two to five percent of the purchase price), travel costs, and any emergency repairs or appliances are all estimates that you might need before you can relocate.

It’s possible to be surprised by increased or unanticipated utility and other expenses when moving from a rental to a larger house. You could, for instance, obtain power bills from the past 12 months to get a sense of average monthly expenses.

If you reach an agreement, you need to put down a good-faith deposit, and the process then continues into escrow. Escrow is a period of time (typically approximately 30 days) wherein the seller takes the house off the market with a contractual expectation that you would buy it—assuming no severe defects are discovered during the house inspection.

Have a Home Inspection Done

Even if the house you wish to buy appears to be in ideal condition, having a competent professional conduct a home inspection to analyze the property’s safety, quality, and overall condition is a must.

You don’t want to find yourself in a financial bind or having to cope with a flurry of unexpected repairs.

If the home inspection reveals severe faults that the seller omitted to disclose, you can normally withdraw your offer and request a refund of the deposit; alternatively, you can ask the seller to make the necessary repairs or give you a reduction on the purchase price.

Close the Deal or Move on to the Next

You should be ready to seal the deal if you’ve been able to strike an agreement with the seller, or even better, if the inspection discovered no major issues. 

Closing requires quickly signing a large amount of documentation while hoping that there are no last-minute problems discovered.

In the final stages of the purchase, you must have the house appraised (mortgage companies require this to protect their interest in the home), obtain private mortgage insurance or a piggyback loan if the down payment is less than 20%, conduct a title search to guarantee that nobody except the seller has a claim to the estate, and complete mortgage paperwork.

Additional closing costs include things such as surveys, loan origination fees, taxes, credit report fees, and title insurance.

You're a Homeowner! Congrats! What Now?

You have signed the paperwork and paid the movers, and your new home is beginning to feel like a home. Isn’t it over now? That’s not the case. The costs of homeownership go beyond the down payment and monthly mortgage payments. Let’s go over a few more pointers to make your life as a new homeowner more secure and enjoyable.

Conduct Regular Maintenance

With the large sums of money being invested into the property, you want to ensure it’s well looked after. By allowing issues to be corrected when they’re manageable and small, regular maintenance can help you save money on repairs.

Keep Saving

Homeownership comes with a slew of unexpected costs, such as a new water heater or a new roof. Create a home emergency fund so you aren’t caught off guard when these bills inevitably come.

What Advantage Does a First-time Home Buyer Have?

Purchasing a home remains a crucial part of the American dream. If you don’t have the standard minimal down payment—preferably 20 percent of the purchase price for a traditional loan – or are a member of a specified group – you have access to tax benefits, federally backed loans, and state programs as a first-time buyer. Even if you aren’t a rookie, you might qualify as a first-time buyer. According to the US Department of Housing and Urban Development (HUD), a first-time homebuyer is somebody who satisfies at least one of the following conditions:
  • A person who hasn’t owned a primary residence in at least three years. If you have owned a property before, but your husband or wife hasn’t, you can purchase a property as first-time buyers together.

  • A single parent who has only ever shared a home with a past spouse.

  • A displaced homemaker who has only ever owned alongside their spouse.

  • Someone who has only owned a primary dwelling that isn’t properly affixed to a permanent establishment as stated by law.

  • An individual who has only held a house that did not meet local, model, or state building codes and couldn’t be brought into compliance for under the cost of establishing a permanent property.

business, lady, woman-3560928.jpg

Santa Fe Luxury Homes for Sale

This guide should get you started on the road to filling in any information gaps you may have about home buying. Remember, the more you know about the process ahead of time, the less stressful it is, and the more likely you are to receive the home you want at the best possible price. When you’re finished, you’ll have the assurance that comes from effectively negotiating a major life event.

Are you ready to take the next step? Ryan Ferguson is deemed reliable and has a number of real estate listings held in the Santa Fe area. We are continuously working to help people buy a home, and welcome feedback and accommodation requests. Luxury homes for sale are available now, and we welcome feedback and accommodation requests. You don’t have to use the Zillow app. Get in touch with Ryan Ferguson, one of the top real estate professionals in the area.