Real Estate Information Archive

The process of buying and selling a home in Albuquerque involves inspections. By doing this, buyers can avoid spending money on expensive repairs later on, and sellers can prepare their properties for a quick sale. Furthermore, regular home inspections help homeowners learn how to maintain, enhance, and increase the value of their properties. 

Here are the things you should know about a home inspection and what to expect from it. 

The Property Will Be Inspected Thoroughly

As the name suggests, a home inspection will cover every nook and cranny of the property, both the interior and exterior. 

You should be present during the inspection if you are the buyer. The inspector will be able to show you firsthand what the inspector is checking, allowing you to determine which areas need repair and how extensive those repairs will be.

Generally, the seller should not attend the home inspection. The seller’s presence will inhibit the success of the inspection because the buyer will not be comfortable conferring with the inspector about the home’s flaws. 

You can find out more about the home inspection process and what it entails by contacting reputable real estate agencies like Hills Direct Real Estate.

It May Take Several Hours

Depending on the size of the house and the number of areas to inspect, a general home inspection can take around two to four hours or even more. In case there are too many major issues with the property, the inspection may be the start of a new process.

Depending on the findings, the report may launch a series of questions and challenges. The seller may agree to make the necessary repairs or give the buyer some money to hire someone to do the repairs before they move in. In some cases, the buyer may cancel the offer to buy the property if it has major safety issues. 

You Need To Hire A Good Home Inspector

Just like in any profession, there are qualified and unqualified home inspectors. However, it can be challenging to distinguish a professional and qualified inspector from someone who’s not. 

Checking the inspector's credentials is essential. A licensed and certified inspector is the best choice. The American Society of Home Inspectors (ASHI) certifies inspectors who have passed an exam and completed a minimum of 250 inspections. An inspector licensed by the state is familiar with the state's home inspection standards. 

Furthermore, you may ask to see the inspector’s sample report. This report should be comprehensive and contain color photos of the home’s problems. 

Inspecting a home is a tedious process. Further evaluation is needed in many areas and aspects. Therefore, hiring a professional home inspector is essential. Also, an incompetent home inspector can jeopardize a transaction.

It Requires You To Invest Some Money

Home inspections can give the buyer peace of mind. It’s beneficial for you to know that the property has been thoroughly checked for any issues. You can be sure that the house you intend to purchase has no hidden problems that might cause you headaches once you start living there. Since no home is perfect, the home inspection can also serve as a guide on home repairs that may be required over time.

It is your responsibility to hire a home inspector as the buyer. When you purchase a property, you should know what a home inspection will cost you so you are prepared for additional costs. There is no set fee for home inspections, however. Home size and location determine the price. 

Typically, the price of a general home inspection costs somewhere between USD$300 and USD$500. Also, the price may increase if you want a more specialized inspection. 

You Will Receive A Home Inspection Report

A copy of the home inspection report will be sent to the buyer within a few days. It’s a usually multi-page document that includes all the details of how the inspection went and the overall condition of the property. 

The report will list the issues that were found during the inspection and corresponding recommendations. Expect to see many photos from different areas that highlight the house’s flaws. 

The inspector will also include in the report the age of appliances and systems in the house based on the information they’ve gathered. 

The best thing about home inspections is that it protects the buyer from acquiring a property with major safety and health issues. You may also use the inspection report as leverage to request the seller to reduce the price or to undertake some repairs. The report itself is valuable because it contains a professional’s unbiased opinion about the issues they managed to uncover and how these can be addressed.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

8519 MENDOCINO Drive NE, Albuquerque, NM 87122

Exceptional Custom Beauty situated in the highly desirable neighborhood of Vineyard Estates! This light, bright, single level home features 2 living areas & a split master floorplan. Featuring raised ceilings, clerestory windows, & skylights optimal for natural light; rich oak wood flooring & wood look tile throughout. The fully remodeled kitchen (2022) boasts gorgeous granite countertops w/waterfall eat at island, new cabinets w/solid brass hardware, SS appliances including 3 ovens, & opens to the welcoming family & dining spaces. The Primary Suite is a true oasis with its own private courtyard & spa like en suite. Oversized Garage w/room for workshop etc. Outdoor entertaining will be a delight under the covered patio & lush landscaped backyard. Close to shopping, park, schools, & more.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Just listed! These latest Albuquerque properties for sale are just what the real estate market has been waiting for. Whether you're looking for the perfect starter home or ready to upgrade your lifestyle, these homes have what you need.

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

11208 HAINES Avenue NE, Albuquerque, NM 87112

Welcome Home! This adorable move in ready 3 bedroom 1 bath home has been tastefully remodeled. Wonderful light bright open floor plan. Large living area and spacious rooms. Backyard access is a real plus! Enjoy relaxing on the big covered patio with a little mountain view. This NE Heights GEM is conveniently located close to shopping, parks, schools and restaurants. Come see this charming home today!

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521 ALBINO Road, Corrales, NM 87048

Majestic Custom Tuscan style home with over 3500 square feet, featuring an open & bright floorplan with thoughtful architectural & design details throughout! Grand foyer leads to stunning great room boasting a raised beamed ceiling; floor to ceiling 'stack' stone fireplace; picture windows to enjoy the Sandia Mtn views; & surround sound extending out to covered patio. Gourmet kitchen graced w/beautiful cabinets & granite counters; high end SS appliances including two built-in microwaves; oversized eat-at island; large pantry; & sunny nook. Exquisite custom etched glass doors lead into the formal dining room! Privately situated primary suite is a true retreat with its own east facing patio & spa like en suite. 

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

A variety of factors make Albuquerque real estate an excellent long-term investment. A real estate investment, for instance, can serve as a hedge against market downturns as well as inflation. You must, however, understand how individual retirement accounts work in order to invest in real estate with them. 

IRAs are essentially retirement accounts that you can use to save money. When you understand the fundamentals of investing with an IRA, you'll see how easy it is to invest in real estate with one. 

We will explain what an IRA is and why real estate investors might benefit from using one.

The Basics of an IRA

Individual retirement accounts (IRAs) are special accounts that can be used to invest for retirement. You can open several types of IRAs, including a traditional IRA and a Roth IRA. Most people will use a Roth IRA to invest in real estate. 

With a Roth IRA, you pay taxes upfront on all your contributions, so if you invest in real estate, you won't have to worry about taxes on your earnings. With a traditional IRA, you pay taxes upfront when you contribute to the account, whereas a Roth IRA allows you to pay taxes upfront on all your contributions.

Why Should I Invest In a Real Estate IRA?

Diversifying your retirement savings with a real estate IRA is a great idea. Instead of investing all your retirement savings in stocks or bonds, you could put a portion into real estate. In this way, you won't lose everything if the stock market drops or interest rates go up and affect bond prices. 

Real estate IRAs are also advantageous because of their long-term investment horizon. Investing in real estate requires a long-term perspective due to the fact that cycles can last decades. By investing in an IRA, you can ignore short-term fluctuations in the market and focus on the long term. Saving for retirement means you don't have to worry about getting out of the market when it's down.

How To Invest In Real Estate Using An IRA

If you want to invest in real estate with your IRA, you must open a Roth IRA account. You can open the account with any investment brokerage. 

After you open the account, you can use it to invest in real estate in a variety of ways. Depending on where you live and your investment strategy, you can invest in both residential and commercial real estate using an IRA.

If you want to invest in residential real estate, you can either purchase a single-family home or a multi-family property such as a duplex or apartment building. If you’re considering purchasing a residential rental property, you’ll want to know the average rental income for the area where you want to invest. This will help you estimate how much money you can expect to earn from the property. 

Commercial real estate is often more expensive than residential real estate, but it can be a more lucrative long-term investment. To invest in commercial real estate with your Roth IRA, you’ll likely need to partner with a commercial real estate investment firm. 

You can also use your Roth IRA to invest in real estate through stocks in real estate investment trusts (REITs). REITs are companies that invest in real estate, and they often pay healthy dividends.

Albuquerque real estate is an excellent long-term investment for a variety of reasons. For example, real estate is often considered to be inflation resistant and can also act as a hedge against market downturns. These benefits, in addition to the fact that you can use your Roth IRA to invest in real estate, make a Roth IRA an excellent choice for long-term, retirement savings. 

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

3515 COLINA SERENA Place NE, Rio Rancho, NM 87124

Beautifully updated, former Pulte Model home in the highly sought after community of Loma Colorado. This home is tucked in a quaint cul-de-sac and backs to open space. Multiple living spaces to fit into your lifestyle. Flooded with light and open floor plan, it has been freshly updated with designer details. Kitchen features an amazing, large granite island with seating and storage. Ample cabinets and countertops, newer Stainless appliances & a walk in pantry. New hot water heater. Off the kitchen you will find a functional Mudroom w/storage and laundry room. One bedroom on the main level and 1/2 bath. Glass doors open to the backyard, which features a sports court, pergola, mature trees, lawn and the privacy of open space behind it. On the second level you will be greeted with a huge Loft.

Learn More!

510 Loma Linda Court NERio Rancho, NM 87124

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

High atop in Placitas with magnificent sunrise & sunset views of mountains & mesas!!

12 Dustin Ct, Placitas, NM

4 Bedrooms/ 4 Baths/ 4959 SqFt

 

Featuring amazing natural light, wood beam ceilings, an open plan, three living areas, separate study/office plus an In-law/guest suite! The cozy living room boasts a Kiva fireplace & wall of windows with incredible mountain views! Entertain in your formal dining room with butler pantry. The beautiful kitchen has Southwest style cabinets, island, built-in oven, gas cooktop, breakfast bar & nook with banco. A serene private master suite features a sitting room/office, fireplace, separate shower, huge walk-in closet & covered patio with more fantastic views! Secondary bedrooms with Jack-N-Jill bath! The lower level features a walk-out living room/game room/media room-talk about great family time and entertaining!! A three-car garage, paved driveway, and great cul-de-sac location. Wonderful natural landscaping includes 2 waterfalls, covered portals & private courtyard. Your own oasis away from it all!  NEW HVAC (2021)! SILICONE ROOF RESTORATION (2022)! This is MUST-SEE.  Don’t wait to make this home your own!

 

So many more gorgeous photos and details to see! Click here to view.

 

Are you searching for a specific type of home, in a certain neighborhood?  Give us a call and let us do the work for you!  We'll sit down and have a conversation to find out all about your needs and requirements and get to work finding you the perfect home.  Call us today. You can also create a customized home search right here on our website. Click here to begin.

We can't wait to help bring your dreams to reality.  

 

 

Moving to a new home in Albuquerque is exciting, but with the thrill come the inconveniences of packing up your belongings. In this case, you have two choices: hire moving companies or do it yourself. 

Packing up and moving your home is not an easy task. Hundreds of things can go wrong, and hundreds of things must be handled. It is a stressful situation, and the tension increases if you handle it yourself. 

It will be easier to avoid problems later if you prepare now. Here are a few tips to make moving day easier.

Things to do before you start packing

You should begin the process at least ten days before your move. You will have less to pack and move into your new home if you get rid of clutter as soon as possible. 

Getting rid of any furniture that cannot be disassembled and won't fit through doorways or rooms in your new house is a good idea. You may be able to sell it or find someone who will buy it from you if you do this far in advance of your relocation. 

Classify your items

Before the relocation, spend at least one hour every day classifying objects. As a result, you won't have to explain anything that requires special attention or should not be handled by the packers and movers when they arrive.

Don't leave expensive or critical goods unattended. Jewelry, computers, financial records, etc., fall under this category. The best way to handle these pricey and private items would be to do so independently. Put them either in a bag you always carry with you, at a bank, or with trusted individuals. 

Calculate your expenses

Obtain two or three quotes from professional moving companies suggested by friends or reliable consumer sites since moving costs can vary greatly. Ensure that the business is licensed and insured as well.

To estimate the cost of a professional relocation, use an online calculator. Additionally, you can also check out customer reviews before settling on a moving company.

Start packing

Pack items you don't need every day well in advance. You will know what's inside the boxes if you label them properly as you pack.

Separately pack your necessities, such as medications, phone chargers, cups, plates, a kettle, food, a change of clothing, etc. Always bring your valuables, including bank documents, identification cards, birth certificates, credit cards, passports, jewelry, etc.

To protect appliances from impact, moisture, and static, especially during intercity moves, you may need to bundle them in many layers. 

Packing advice

It will be simpler to unpack at your new house if you pack one room at a time. Some advice:

• Carefully pack every item and keep each box padded within.
• Label the boxes according to the rooms or items.
• Keep boxes lightweight for easy movement. 
• Store all of your essentials in boxes labeled "essentials."

Minor furniture parts, such as nuts, bolts, screws, etc., should be kept in airtight bags, taped to the furniture they belong to. 

When it comes to moving your irreplaceable keepsakes, art works, and treasured possessions, a competent fine art moving and storage service provider is recommended.

Update the information

It's simple to become preoccupied with the relocation, but it's crucial to let friends, employers, and creditors know your new address.

To avoid service interruptions and past-due payments, notify your utilities and service providers about your move. 

Contact your local phone, cable, internet, electric, gas, and water companies. You should plan for the utilities to be disconnected from your old house and reconnected in your new one before moving in.

Settling at your new home

The process of setting everything up will take time if you decide to unpack alone. You will need an overnight bag that contains everything you need for a day or two. 

Make sure to clean your new house a day or two before you move in, paying particular attention to the kitchen and bathroom. 

If you follow these tips, your move in Albuquerque will definitely go smoother.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6412 MOJAVE Street NW, Albuquerque, NM 87120

Wow - this custom gem has all the bells and whistles! Enjoy details that you normally find in Santa Fe here in the heart of the petroglyphs: Diamond plaster walls, brick floors, GORGEOUS Vigas, cathedral ceilings, Solid Wood doors with Brass hardware, Inlaid wood flooring, travertine flooring and more! Relax with the dual living areas featuring 2 Kiva fireplaces. Enjoy cooking in your gourmet chef's kitchen featuring a Sub-Zero wine fridge, 6-burner gas range with Thermador Hood, and ELEGANT granite countertops. Make the Master Suite your retreat with a gas fireplace, separate living area and spa-like master bath featuring skylights, separate shower and jetted tub. All New in 2021: TPO Roof, 2 Refrigerated Air Units, Furnace AND Water Heater.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

The experience of owning your first home in Albuquerque can be exciting, but it can also be challenging. You need to consider many factors before building or buying a new home. Choosing between buying and building is tricky, as both options have their advantages and disadvantages. Several factors need to be considered, including location, cost, budget, space, sustainability, family size, and others. For your convenience, here is a simple guide: 

Considerations

It'd help to consider some factors before deciding whether to buy or build your first home. They include:

1. Location And Cost

By comparing the average cost of buying versus building a new home, you will be able to make an informed decision. Different neighborhoods and locations will have different amounts. The idea that buying a house is cheaper than building one isn't entirely true. Although the price of an existing home may seem fair, you may find there are many hidden costs, such as remodeling, redesigning flooring, and others, which may make it more expensive than building your own home.

The amount of money you spend building a house is straightforward. All you need is good architectural plans and a reliable construction company to turn the next page of your life as a homeowner. It has no hidden costs; you do your calculations and know all the expenses before construction starts. 

2. Quality Of Construction

The quality of construction may greatly influence your decision or build. If you are buying an existing home, you may want to research the contractors who built it, their reputation, and their reliability. A poorly constructed home isn't something you want to buy. 

On the other hand, building a home has its advantages. Construction companies are chosen based on their efficiency and quality. As well as choosing the design, size, and fixtures, you decide how they will be installed. 

3. Repairs And Remodeling

When buying an existing house, you'll have to deal with remodeling, repairs, and move-in conditions. When you buy a home that has already been updated, you're in luck, but if the house is outdated, you'll need to make improvements. It may also be necessary to get a permit to carry out the renovations. Taking your time and building your own house is the best option if you can't handle the pressure.

Advantages And Disadvantages Of Building Your First Home

Building your first house has two sides to it. There are benefits you can draw from this option as well as limitations.

Here are some of the benefits of building over buying your first home;

• Energy Efficiency: You choose all the materials used, ensuring they're all energy-efficient. 
• Less Competition: Unlike house hunting, you don't compete with other buyers for the same house.
• Customization: The house design, size, landscaping, and all features are upon you to decide. Thus, you don't compromise your desires and settle for what you don't like entirely. 
• Fewer Maintenance Costs: The insurance coverage is much lower on a new home, and it'll take a long time before you start repairs.

The limitations of building your home are:

• Costly: Constructing a new home is a high-value investment. You’ll need a lot of money to build a house.
• Overwhelming Decisions: You'll have to make all the decisions. It can be overpowering for a new homeowner.
• More Time And Effort: It'll take a very long time before you can move into your new home. Planning, flooring, landscaping, and other activities will take a long time. 

Advantages And Disadvantages Of Buying Your First Home

As in building, buying your own home also has its pros and cons. The benefits of buying include:

• Neighborhood Choice: You get to choose your neighborhood in Albuquerque depending on your interests and financial capability. For instance, you can select a home closer to town or a school if you have kids.
• Less Paperwork: The legal documents required when buying a house are less than what's needed to build one. 
• Moving-in Condition: You move in immediately after paperwork and renovation, unlike in a building where you have to wait until construction is complete.
• Cost Savings: You save a lot when you buy an existing home that doesn't require renovations and updates.

The disadvantages of buying a home include:

• Maintenance And Additional Expenses: There are high chances you'll have to update and remodel the house to suit your needs and cater to the maintenance issues that arise from time to time. 
• House Hunting Stress: House hunting is stressful; it'll take a lot of time and effort to find the perfect home for you and your family. 
• Hazardous Materials: You won't know whether the materials used in construction are harmful or not. You may move into a home with mold, lead paints, asbestos, and other toxic building materials.
• Compromise On Design: You may find a home in good condition, but you may not find one with all the features and styles you want.

The process of owning a home is both exciting and overwhelming at the same time. You'll need to make critical decisions like buying or building a new home. This guide provides you with all the information you need to know before you make that decision. Ideally, weigh the pros and cons of each option and settle on one that best suits your unique needs.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6412 MOJAVE Street NW, Albuquerque, NM 87120

Wow - this custom gem has all the bells and whistles! Enjoy details that you normally find in Santa Fe here in the heart of the petroglyphs: Diamond plaster walls, brick floors, GORGEOUS Vigas, cathedral ceilings, Solid Wood doors with Brass hardware, Inlaid wood flooring, travertine flooring and more! Relax with the dual living areas featuring 2 Kiva fireplaces. Enjoy cooking in your gourmet chef's kitchen featuring a Sub-Zero wine fridge, 6-burner gas range with Thermador Hood, and ELEGANT granite countertops. Make the Master Suite your retreat with a gas fireplace, separate living area and spa-like master bath featuring skylights, separate shower and jetted tub. All New in 2021: TPO Roof, 2 Refrigerated Air Units, Furnace AND Water Heater.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Whether you're looking for the perfect first home or ready to step up to a more custom home, we have you covered with these latest HOT Albuquerque properties. These homes offer plenty of amenities and great locations, so they're sure to sell fast!

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

6412 MOJAVE Street NW, Albuquerque, NM 87120

Wow - this custom gem has all the bells and whistles! Enjoy details that you normally find in Santa Fe here in the heart of the petroglyphs: Diamond plaster walls, brick floors, GORGEOUS Vigas, cathedral ceilings, Solid Wood doors with Brass hardware, Inlaid wood flooring, travertine flooring and more! Relax with the dual living areas featuring 2 Kiva fireplaces. Enjoy cooking in your gourmet chef's kitchen featuring a Sub-Zero wine fridge, 6-burner gas range with Thermador Hood, and ELEGANT granite countertops. Make the Master Suite your retreat with a gas fireplace, separate living area and spa-like master bath featuring skylights, separate shower and jetted tub. All New in 2021: TPO Roof, 2 Refrigerated Air Units, Furnace AND Water Heater.

Learn More!

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87 CAMINO ALTO, Sandia Park, NM 87047

Single owner home situated in the community of Sandia Knolls. Views of the mountains from the back yard with grassy meadow. One story home offers 3 good sized bedrooms, 2 baths, 2 living spaces separate from each other and both have their own entrances. Great flex space for home office or home schooling or hobbie room. Community water and paved roads. Easy commute to ABQ, Santa Fe and Madrid.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Building a custom home rather than buying an existing property in Albuquerque might require a construction loan. This type of loan covers only the cost of building a custom house and covers a short time period.

Your home must then be completed before you can apply for a mortgage. You use the mortgage to pay for your completed home.

A construction loan is usually shorter-term and has a higher interest rate than a mortgage.

In most cases, loans last for a year, during which the property must be built and a certificate of occupancy must be obtained.

What Do Construction Loans Cover?

Building materials, permits, the cost of the land and your contractor's labor can all be covered by a construction loan. The money may also be useful for landscaping and appliances.

To get an accurate loan-to-value calculation, it is important to clarify with your lender what the construction loan will cover.

A contingency reserve is often included in construction loans. You can use the reserve to cover any unexpected construction costs. Your contingency reserve would be used if, for instance, you decide you would like higher-end cabinets than you originally planned.

How Do These Loans Work?

Variable interest rates are common for construction loans, so the rate increases and decreases based on the prime rate. In almost every case, the loan rate will be higher than a traditional mortgage. Conventional mortgages require you to put your home as collateral. You could lose your home if you defaulted. Since construction loans don't have this option, they are higher-risk loans, which means you pay more in interest.

The lender requires detailed plans, budget estimates, and an estimated timing for the project before providing a construction loan.

As soon as your loan application is approved, you will be put on a construction schedule, also known as a draw or draft schedule. Only interest payments are expected during this period. As you make progress on your home, your lender pays you in phases.

As major milestones are achieved, draws will take place. As an example, you may receive a drawing when your foundation is laid.

Building progress will be checked by an inspector or an appraiser during the construction process.

Your construction loan might be converted to a standard mortgage once your home is completed. This type of loan is called construction-to-permanent financing.

If you get a loan that’s only for construction, then as the borrower, you might have to obtain a separate mortgage that is then used to pay off your construction loan.

Different Types of Construction Loans

Construction-to-permanent loan

Getting a construction-to-permanent loan enables you to finance both your home construction and your mortgage. The money you borrow goes toward the construction of your home. You then convert your loan to a permanent loan when the construction is completed and you move in.

This option has several benefits, including the fact that you only have to pay closing costs once.

In the event you are converting your construction loan to a permanent loan, the repayment period usually lasts 15 to 30 years, and you pay interest and principal together.

Construction-only

Construction-only loans provide you with funding just to finish building your home, but as the borrower, you are required to repay the loan in full at maturity, which is usually within a year, or take out a mortgage for permanent financing.

The construction-only loan funds are dispersed based on the extent of the project's completion.

Construction loans may be more expensive because you have to go through two loan transactions, which means two sets of fees.

Owner-builder construction loan

Finally, there is a loan specifically for home builders. There are construction-to-permanent and construction-only loans. In most instances, the borrower and the builder are the same person, but you need to have a license to get this type of loan.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

6 WHIPPOORWILL Lane, Tijeras, NM 87059

Mountain Living at its finest! Serene, light filled sanctuary, within this custom built home spacious home with soaring ceilings and light filled rooms, a wall of windows open to the majestic Pines. Pride of Ownership. Features open floor plan. Kitchen offers an Island, ample cabinet space & countertops that flows into the dining room. Freshly stained concrete floor in great room. Three generous bedrooms, w/the primary suite & loft occupying the top level, with viewing deck. New carpet. Oversized 2cg. Wonderful outdoor entertaining spaces. New septic tank installed 7/22. And 1550 gal Water Tank system in 6/22. Nature brings serenity to this home with the Vibrant New Mexico sky. Discover wildlife such as deer, rabbits, hawks, hummingbirds, & squirrels. Close to trails, mtn biking, & I-25

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Are you looking for a great home in the mountains or near the city? Either way, we have you covered with these latest HOT Albuquerque properties. These homes offer plenty of amenities and great locations, so they're sure to sell fast!

Contact the Sandi Pressley Team today for your exclusive showing. You can also check out all of our listings on our Featured Listings page.

6 WHIPPOORWILL Lane, Tijeras, NM 87059

Mountain Living at its finest! Serene, light filled sanctuary, within this custom built home spacious home with soaring ceilings and light filled rooms, a wall of windows open to the majestic Pines. Pride of Ownership. Features open floor plan. Kitchen offers an Island, ample cabinet space & countertops that flows into the dining room. Freshly stained concrete floor in great room. Three generous bedrooms, w/the primary suite & loft occupying the top level, with viewing deck. New carpet. Oversized 2cg. Wonderful outdoor entertaining spaces. New septic tank installed 7/22. And 1550 gal Water Tank system in 6/22. Nature brings serenity to this home with the Vibrant New Mexico sky. Discover wildlife such as deer, rabbits, hawks, hummingbirds, & squirrels. Close to trails, mtn biking, & I-25

Learn More!

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11015 COCONINO Road SE, Albuquerque, NM 87123

Beautiful single story 4BDR/2BA/2CG light, bright & open featuring a huge great room with gas fireplace, raised ceiling and open to the kitchen and breakfast nook for entertaining! Tile flooring! Refrigerated Air, Solar, ECO Water Softener & R/O sys! Master suite features a large walk-in closet, Jacuzzi walk-in tub! Backyard features an extended covered patio, raised garden bed, rock landscape, waterfall pond & mini putt putt course! Great location close to parks, schools, shopping & easy access to Uptown, Downtown, KAFB!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Are you thinking about buying a vacation or investment home in Albuquerque? What's the difference between the two, and why does it matter?

There are a few differences in mortgage rules for a second home in Albuquerque as compared to your primary home. You should also know the key differences between buying a second home and an investment property, since these terms are often used interchangeably.

What Does "Second Home" Mean?

In addition to your primary residence, a second home is a property that you live in part of the year. A second home is usually a vacation home, but it can also be a place you go for work. Maybe you have a condo in a city where you often work, but it's not your main residence.

Getting a mortgage for a second home usually requires it to either be in a vacation or resort location, or to be at a certain distance from your primary residence.

Loans for second homes usually have lower interest rates than loans for investment properties.

There is also likely to be a Second Home Rider attached to your loan.

Under the rider, you are obligated to occupy and use the property as your second home. There cannot be any agreements requiring you to rent the property or give a management company or third-party control over its use, or the property cannot be part of a rental pool or timeshare.

It is important to note that while this is the general definition a lender might use, every lender will have their own requirements.

For instance, some lenders won't give you a second home loan if you plan to rent out your home. There are others who will give you a loan as long as you are planning to live in the home for a certain number of days every year, even if the house is also going to be rented.

What About Financing An Investment Property?

The financing process for a second home differs from that of an investment property, so understanding the differences is important. A second home is typically easier to finance than an investment property.

Most second home mortgages have rates that are comparable to those for buying a primary home, and credit requirements are similar as well.

Investment property mortgages are harder to qualify for, and the interest rate and origination fees are likely to be higher.

It doesn't mean investment property mortgages aren't beneficial.

You might be able to get a loan more easily if you own an investment property because the property will generate cash flow to cover your loan and other expenses.

What About the IRS?

As far as comparing a second home with an investment property, the IRS has its own guidelines. You can use a property as a second home if you use it at least 14 days each year, or 10% of the time you rent it. It's an investment property if you don't meet that standard.

The question is, why is it important?

Mortgage interest can be deducted from your tax return if you own a second home. Up to $750,000 in qualifying residential debt can be used to offset interest paid.

In the case of an investment property, you can take the same deduction, but you can deduct interest on the mortgage as a rental income expense.

If you own an investment property, you can claim a depreciation expense, which will reduce the amount of your rental income that is taxable. Regardless of how the IRS classifies the home, if you use it and rent it, you have to divide expenses according to when you use it.

Lastly, if you're considering fudging the truth, don't do it. If you aren't honest about your intended use of the property, then it can be considered mortgage fraud, which is illegal.

HOT ALBUQUERQUE PROPERTY OF THE WEEK!

This gorgeous Roger Smith built home is located in a very private quiet compound in desirable Sandia Heights! Lots of natural light and windows to enjoy the peaceful scenery. This 1800 sf 3 bedroom 2 bath home features a mid century modern vibe with soft clean lines that are timeless in nature, raised T & G wood ceiling, remodeled kitchen and baths, beautiful wood floors in all bedrooms. Private owners suite with spa like bath and access to the inviting backyard. Please see all updates/improvements in documents to many to list. Artistically landscaped yard with mature trees, flowers and plants. Close to Sandia Tram, walking and hiking trails. Home has been meticulously maintained with enormous pride of ownership.

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team