Rio Rancho, located in New Mexico, is the economic hub of Sandoval County. If you are looking to purchase a home in the area, you want to be sure that you do not overlook the real estate market in Rio Rancho.
Unfortunately, there are a lot of myths that prospective home buyers believe that may actually hinder them from getting the home of their dreams. See if you have heard any of the following misconceptions, or if there are others you have heard that are not on the list.
20% Down Is Necessary
The primary step in getting approved for a home is to first get pre-qualified or either pre-approved by the lender. A reputable lender will review your financial situation, and will make the best recommendations for your specific needs.
There are a few types of down payments and loans that you may qualify for in Rio Rancho. In the state of New Mexico, there is a program for first time home buyers. With this program, they have the opportunity to purchase a home with a down payment of only $500.
Veterans or those who have served in the military may qualify for home with no money down. However, these individuals will need to meet the VA requirements.
Also, keep in mind that if you are not required to pay 20% down, you may have to pay mortgage insurance.
Pre-Approval And Pre-Qualification Is The Same Thing
This is a misconception that many people believe whether they are trying to get approved for a home or another major purchase. However, there are differences between the two. Pre-qualified involves providing the lender with some basic information. This information will include your income, assets, debts and employment history. The mortgage lender will then take this information and determine if you qualify for a mortgage, and if so, how much the loan should be worth.
The lender will then ask for additional information and will verify the information you provide. Pre-qualification will occur after the lender has reviewed the information.
Keep in mind that a real estate agent or broker will not truly believe you are seriously looking for a home if you have not been pre-qualified by a lender first. By being pre-approved, you will have more power at the negotiating table.
These are just two of the most common misconceptions about buying a home in Rio Rancho. Are there any others you believe that are preventing you from getting a home?