Serving All Your Real Estate Needs In Angel Fire, Red River & Taos, New Mexico; Land, Ranches & Unique Homes

The Top 6 Kitchen Features Associated With a Sales Premium

1. Steam ovens

As their name implies, steam ovens cook food with steam instead of hot air. The ovens make regular appearances on cooking shows, a popular pandemic pastime that may have influenced home cooks' decision to buy one. Homes that mentioned a steam oven in their listing are associated with a 4.9% price premium.

2. Pizza ovens

People take their pizza seriously, and for those devoted to crafting the perfect pie, a pizza oven is a must-have. Homes that mentioned pizza ovens in their listing sold for 3.4% more than expected.

3. New appliances

A home with new appliances can help assure buyers that they won't have to sink a bunch of money into replacing a broken refrigerator or dishwasher, and instead save, invest or spend that money on other home projects. Homes with new appliances carry a 3.2% sales premium.

4. Quartz countertops

Quartz countertops are made from an engineered material made of crushed stone particles bound together by plastic resin. Known for durability and stain resistance, countertops made from quartz are associated with a 3.2% price premium.

5. Smart appliances

Smart appliances are devices that can be operated and controlled through a smartphone or tablet. The technology, which makes appliances more efficient, can be found in everything from refrigerators to thermostats to water heaters. Homes that listed smart appliances in their listing description sold for 3% more than expected.

6. Butcher block countertops

Wood is one of those rare materials that can infuse any room with a feeling of warmth, and the kitchen is no exception. Butcher block comes in a variety of wood types and thickness, all of which affect the cost. They were associated with a 2.7% sales premium.

Ways to Get Your Property in Shape to Sell for a Better Price

When you are selling a house, preparing it for viewers/potential buyers (including COVID-safe virtual viewings)

is essential. Not only can property in a good shape be sold faster, but it can increase the value by thousands of dollars.

And every seller wants to increase the value of their home, but also know, It's completely normal to feel a bit confused and

stressed-out in these situations. Don't worry, we got your back! There are many tested ways to squeeze a little extra value from

your property. You just need to make a plan! By creating a great first impression, you and your house will stand out in the eyes

of prospective buyers. Follow this simple guide and you will sell your property quickly and for the best price.

1. Declutter

2. Fresh Coat of Paint

3. Fix and Clean

4. Update the Kitchen

5. Make the Space Feel Light And Airy

6. Make It Look Pretty

10 Projects You Should Do Before Selling A House

10 Projects You Should Do Before Selling A House

Looking to get a heads up on the housing market? These upgrades can make your home more appealing to buyers.

Tactics such as painting and de-cluttering can go a long way toward achieving this goal and these other simple home staging tips can bring up your home's wow factor to get that quick sale.

1. Have all of your carpets cleaned

This is especially true if you have pets. Some people are highly allergic to animals so getting all the hair and smells out of the home will open it up to more buyers.

If you have carpet that is old and worn-out with hardwood flooring underneath, remove the carpet, buyers are going to want to know the condition of the floors anyway.

2. Give your moldings a makeover

If your moldings are chipped, cracked, or scuffed, give them a quick touch-up, also do the same with walls that have scuff marks or stains.

3. Do up your deck

If you have outdoor areas such as a deck or patio, make it look as eye catching as possible, Upgrade your outdoor furniture by purchasing new cushions, pillows, or make new covers, give the grill a good cleaning, and add some potted plants or flowers to make it feel more homey. If it's winter and you live in a cold climate, be sure to keep these areas shoveled to show them off.

4. Freshen up your front door

Add a new coat of paint and replace the numbers with a more modern font. If your mailbox is old, rusted, or worn-out replace it with a new one. Also, be sure your entryway looks neat & tidy don't allow potential buyers to see or have to navigate through any clutter.

5. Remove roof moss

Moss leads buyers to believe that your roof is old and will be needing replaced soon. If you can get up on your roof, it's simple to remove moss. Use a long-handled scrub brush to get it loose and work down the roof to keep from lifting or breaking the shingles. Do not use a pressure washer because the power of the spray might damage the shingles.

6. Make sure your mechanics are in working order

Helping buyers feel that the furnace or boiler are in good shape and have life left in them will really help move your home quickly. Have these items inspected and cleaned prior to putting your house up for sale.

7. Cut your closets in half

Make your closets look bigger by, removing half the items and then neatly organize the remaining clothing and other items you have. Large closets a usually a big plus to buyers.

8. Update your outlets

If your electrical outlets and switches are broken, chipped, or outdated, replace them with a more modern or newer version. Make sure to use the same style in each room. Replace the switch plates too if they look old or broken.

9. Replace your toilet seats

It's an upgrade that goes a long way toward making your bathroom look updated and in good working order. Do the same with the shower curtain and the grout in the shower.

10. Perk up your pulls

The kitchen cabinets or drawers might be on the older side and if you don't have the time or money to redo them just replace the knobs and pulls with a modern or unique version. It can make a huge difference in your kitchen's appeal.

Whether you are looking to buy or sell a home, look to New Mexico Mountain Properties in Angel Fire and Taos, NM for all of your Real Estate needs. Our warm and inviting staff will help you get exactly what you are looking for, like our majestic mountain homes for sale in Angel Fire will give you the mountain setting you may want ,while our unique Taos homes for sale will let you get in touch with your creative side. Our Taos Ski Valley and Angel Fire condos for sale will put you right next to all the winter activities. If your looking to build your own home, then our Angel Fire and Taos land for sale will give you the freedom to create your own dream home. If you are seeking to live totally off the grid, , then look to our Taos Earthships for sale. Whatever your looking for we can help you find it. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos or 575-770-3306 to speak directly to an agent. We are here to serve and welcome you to our spectacular area.

10 Essential Home Security Tips

10 Essential Home Security Tips

10 easy tips to keep your home from being a target this holiday season and all year long.

1. Beef up security systems

So you have set the alarm and have motion-activated lights outside, but there are some other things you need to consider doing to add more protection to your home. Try installing a heavy-duty lock strike plate on your door and adding sash pins to double-hung windows to make them more secure.

2. Look as though you live there when you're out of town

If your grass is still growing, be sure to mow it before you leave. If there is a big snow comming? Have someone to come by to shovel your walk and driveway and anything else to make it look like you are still there.

3. Windows + extension cords = bad

Holiday lights are fun? But, be sure you aren't running electrical extension cords through your windows. If you are unable to close and latch, you're sending burglars an invitation to invade.

4. Don't fall for door-to-door solicitations

A common way burglars see what goodies you have in your home is by posing as a charity workers asking for donations. If someone comes to your door, do not open it, or ask for an ID that verifies who they are and if they ask to come inside don't let them.

5. Use the latest technology

Take advantage of a device called FakeTV, which mimics the flickering light of a TV to make it look as though you are home. You can also use Wi-Fi-connected plug-in devices that will allow you to turn lights on and off remotely with your cellphone or mobile device.

6. Keep your tree out of sight

The Christmas tree in front of the window is nice and if there are presents under the tree for thieves to see it gives them a reason to break in. Either keep your tree away from prying eyes or wait until Christmas Eve to put your presents out.

7. Do your packing out of sight

Load up the vehicle in the garage or out of sight if possible or when there is a lot going on so thieves have a harder time tracking what and how much you are loading.

8. Be smart about boxes

After opening all of your gifts don't leave the empty boxes on the curb for everyone to see. Break them down , turn them inside out, and put them in your container on trash day or take them to a recycling center. The same goes all year long because you don't just want to leave a box out for a 62" flat screen TV, mail with important info, medication bottles or any other items that will give thieves a reason to strike.

9. Make a record of gifts

Got some expensive items coming this year? It's a good idea to take a picture and write down the serial number of anything pricey. Should the worst happen, you will have a record of what was taken and who should get a thank-you note.

10. Don't publicize your vacation plans

It's hard to fight the urge to post on Facebook and Instagram about all your plans. But it's probably not the best idea to share those plans with your 500 closest friends online. Your Facebook profile might not be as private as you think it is so it's better not to take the risk.

If your looking for privacy or a place to avoid people seeing your every move, let New Mexico Mountain Properties be your Real Estate destination for all your Real Estate needs. With offices in Taos and Angel Fire, our knowledgeable brokers can assist you with finding the home or property that's right for you. Our Earthships for sale in Taos will give you privacy and seclusion and our homes for sale in Angel Fire and Taos can offer peaceful mountain living . Perhaps you would like to build your dream home on the fabulous land for sale in Angel Fire and Taos. We also offer condos for sale in Taos Ski Valley and the Angel Fire Ski Mountain. Our dedicated and warm staff will go that extra mile to make sure you get exactly what you are looking give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos or speak to a Broker directly at 575-770-3306 we are here to serve and welcome you to this truly enchanted area.

8 Photos You Should Take At Every Open House

8 Photos You Should Take At Every Open House

Look at what you love (or don't particularly like) about the houses you view.

The home-buying process can be stressful and after awhile, all the properties start to look the same. You try to remember what features you liked, didn't, & what was in which home. That's where taking pictures can be very beneficial. If the home is still occupied by the seller, be polite and ask the agent on duty whether it's OK for you to take some photos. If it is, here's a list of ideal areas to take photos that will come in handy, and help you decide to make an offer or not.

1. Heavy-use areas

Some areas of a house get more wear and tear and need more attention than others. For instance, in the front entrance as you walk in, the kitchen, the bathrooms, the backyard, And other areas you may need to photograph. You will want to know how much work needs to be done and if you are able and wanting to do the work. This is something that can affect your decision on making an offer or not. Taking photos of areas that need fixing is "a great way to avoid inspection problems later on in the buying process," It might also help if you get an inspection first to get a ballpark figure of how much the repairs might cost.

2. Specific rooms

If you're bringing furniture when you move, it helps to take photos of the layout of the rooms to see if you furniture will fit in the space.

3. Your "must-haves"

Certain home features are probably important to you, like walk-in closets, space in the kitchen, laundry room, etc. . Definitely take photos of the must-have areas so you'll remember which houses have them. If you are looking for a move-in-ready home that needs certain features make sure you take pictures of those same rooms in each home so you can compare them later on.

4. Problem areas

This category is generally overlooked when looking at homes, but you should take a picture under the sinks, the electrical panel, stains on the walls and ceilings if any, the roof from different angles, & the foundation of the home.

5. Appliance tags

Not every home includes appliances, if there are appliances take a photo of the make and model numbers of the ones that come as part of the deal. That way, You can estimate their value and life span later on.

6. Street views

You can't guarantee the listing photos will include the neighborhood, take a few shots facing away from the house and down each direction of the street, This will remind you of what you'll see every time you go outside.

7. The extra touches

Sometimes you fall in love with the little extras of a home so you Definitely want to snap some pics of those details. That way, when you're going through everything, the photos will remind you of your favorite features.

8. The address

No matter how great your photos are if you don't remember the address of the home you took them in they won't do you much good if you can't put them in order. So remember to take a photo of the address after each round of photos so you know what features go to what home.

When looking for a home or property look no further than New Mexico Mountain Properties for all your Real Estate needs. With two locations in both Angel Fire and Taos, NM and our dedicated staff, we will do everything we can to find you that perfect place. Our Angel Fire homes for sale offer stunning views of Moreno Valley combined with the land for sale in Angel Fire you get the best of both worlds. While our homes for sale in Taos give you glorious views of the mountains and the Taos land for sale lets you escape from the everyday. If your looking for smaller living we have our condos for sale in Angel Fire and Taos. We can help you find whatever Taos or Angel Fire real estate you are looking for. So give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos or 575-770-3306 to speak directly to n agent. We are here to serve and welcome your to our scenic area.

How Will The New Mortgage Rules Affect You?

How Will The New Mortgage Rules Affect You?

The mortgage game might be the same, but the rules have changed to favor home buyers instead of lenders. The Consumer Financial Protection Bureau (CFPB) is pinch-hitting for HUD. Its mission: to make sure the housing crisis of 2008, never happens again. One goal is to make the buying process clearer to consumers, whether you're looking at homes for sale in Taos, NM or Angel Fire, NM

Starting October 3, when you apply for a new mortgage, you'll receive new disclosures that will make the loan process easier, help you save money, and ensures you know before you owe," This new mortgage process is more transparent to consumers and includes information that helps you, the home buyers, figure out what you can afford to buy. This new rule is called "Know Before You Owe".

Here's an overview of the changes and what they mean for you.

Some history

Before the new mortgage disclosures went into effect, homebuyers were presented with the TMI (too much information) version of mortgage documents. As you can imagine, it was a bit complicated. And lenders didn't even have to disclose everything. "The old Good Faith Estimate and the HUD-1 did not explain the two most important things to their consumers: like knowing what their new payment will be and how much cash will be required at closing,"

The change

The CFPB replaced the four documents with two simpler ones: the Loan Estimate and the Closing Disclosure. The new forms "help you shop for the best deals and avoid expensive surprises at closing," Home buyers now have "a better perspective of the true cost of their loan.

The three-day-wait rule

The new CFPB mortgage disclosure rules call for a three-day period to allow buyers to look over and become familiar with the Closing Disclosure before they get to the settlement table. The three-day period "gives you time to talk to your lender about questions you might have about the terms of your mortgage, as well as consult with your housing counselor or advisor," "Borrowers will know every tax, fee, risk, and if there are any penalties for paying off the loan early or whether there is payments at the end,"

The mulligan, or the do-over

If the loan product changes during the three-day review period, you must start over and take another three days to review the new changes.

Here is what triggers the additional three-day period:

1) If the annual percentage rate (APR) increases by more than ? of a percent for a fixed-rate loan and ¼ of a percent for an adjustable loan.

2) If a prepayment penalty is added.

3) If the basic loan changes, from a fixed rate to an adjustable one.

Minor changes such as a typo on a closing document the discovery of a bedroom window that won't open and wanting a credit from the buyer -- won't trigger the extra three-day wait. But even still, "Problems could arise with the three-day disclosure period, creating a domino effect," If a closing is delayed by the buyer, it will directly impact the closing of the house the seller is trying to buy."

The new normal: a 45-day closing?

A typical closing takes 30 days, but many lenders now assume they'll need more time to close. A consumer in a hurry is not going to have an easy time of it," Most of the waiting periods are mandatory and can not be waived. This three-day rule, although well-intentioned, could cause you to lose out. If you're in a hot market and it takes 45 days to close, a cash buyer who's ready to close might be a lot more attractive, leaving you to start over. But once the dust settles, the closing time frame should adjust.

Here are to tips to help you get through the closing period!

1) Ask for a rate lock longer than 30 days.

2) Avoid any loan that does not waive the per diem charge for late closings.

Here at New Mexico Mountain Properties we understand the stresses that go with being a homeowner and we are dedicated to helping you sell your home or acquire a new home. So whatever you fancy we've got you covered....a home in Taos.....or maybe a Taos Ski Valley condo is what you are looking for. We also have fabulous deals on Taos land for sale as well as small to large parcels of land for sale in Angel Fire. Looking for a home or condo in Angel Fire? We can assist you with that as well. Give us a call at 575-377-2626, in our Angel Fire office or 575-758-5852 , in our Taos office or speak directly to the broker at 575-770-3306. We are dedicated to going that extra mile to make sure you get exactly what your looking for! Let us serve and welcome you to the Enchanted

8 Steps to Boost Your Credit Before You Buy!

8 Steps to Boost Your Credit Before You Buy

Building good credit is an important part of buying a home, so be sure your credit score is good before you start searching for a home.

Having good credit opens lots of doors when it comes to buying a home and bad credit can close them. And now that the new Qualified Mortgage Rules have made mortgage applications and qualifying for a loan more challenging, having good credit has become a more crucial factor in owning a home.

Wondering how to fix your credit? Just follow these nine steps to strengthen and solidify your score.

1. Get your hands on your credit report

If you don't have a current report on hand, get one now. You need to be aware that serious and sometimes even minor issues, can take months to repair. There are a variety of ways to get your report, and you're entitled to a free credit report once a year under the FACT Act.

2. Mistakes happen: Get them fixed

Every year, 25% of the people who are denied for a mortgage have errors in their credit reports. You can find step-by-step guides on how to file a claim on any of the credit bureau websites. Keep a good record of your disputes, including copies of any documents you file with the bureaus. Once you make an initial claim, you should get a response within 60 days.

The 3 main Credit Bureaus are:

3. Stay current

Pay your bills on time. If you are looking to increase those scores over time in a clear and steady upward climb, never miss a payment. Ever!

4. Pay more than the bottom line

Always make more than the minimum payments on your revolving credits each month. A history of only minimum payments is not an attractive indicator for anyone reviewing your credit report. Always pay more, Not only will you chip away at your balances faster, you will save on the total amount of interest handed over to your bank.

5. Maintain low balances

Avoid carrying a balance that's more than 50% of your limit on each card, and pay those debts down below the halfway mark as soon as possible.

6. Don't move it, lose it

Pay off the debt on your existing card, don't just move it to a new one. You will pay off debt quicker if you just work hard to pay off what's on the card you already have.

7. Don't cut cards

Pay off all your credit cards, but DON'T CLOSE any of them before you apply for a mortgage.

8. Keep your old car

Any significant buys can alter your financial picture, and banks don't like to see sudden changes just before approving a loan. Even without any dings on your report, you'll want to make sure all your credit cards are paid up prior to qualifying for a loan. Pay down your debt, then lock up your credit cards until your credit score has been checked and you have been approved for your mortgage.

New Mexico Mountain Properties is here to help you find your perfect piece of paradise. we take the time to help you find just what you are looking for, from our stunning mountain homes for sale in Angel Fire and the unique homes for sale in Taos, to the wide open Taos and Angel Fire land for sale. Want seclusion from the mundane, try our Earthship homes for sale in Taos and get in touch with nature. Our Angel Fire condos for sale offer the convenience of being in walking distance to the Angel Fire Ski Resort and can make great vacation rentals as well.

Whatever your looking for we will help you find it! Our agents go above and beyond the normal to give you the extraordinary! So give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos, or speak to an agent directly at 575-770-3306. Let us serve and welcome you to this truly magical area.

How Long Does It Take To Get A Loan?

How Long Does It Take to Get a Loan?

Follow these steps to land the smartest loan.

Step 1: Shopping for loans

You wouldn't buy a car, furniture, or appliances without shopping around, would you? So you shouldn't sign up for a 30-year loan without doing your research.The Fair Isaac Corporation, or FICO, allows people to rate-shop for a mortgage without repeatedly "dinging" their credit scores. However, do all of your shopping within a 14-day window for credit bureaus to ignore subsequent "dings" every time you pull your credit.

Step 2: Get a pre-qualification letter

Most sellers require your pre-qualification letter before they'll even consider your offer --this step is quick and easy. Ask the lenders you spoke to during your mortgage shopping for a pre-qualification letter. These are relatively easy to get and they give a rough, unverified estimate of the loan size you may qualify for. Most lenders will give you a pre-qualification based on your verbal self-reporting of your income, assets, debts, and down payment size.

Step 3: Get pre-approval

The pre-approval stage is when lenders verify everything you've told them. You'll need to supply proof of income, proof of assets, proof of employment, records of any debts you hold, and of course identification documents and a credit report. Depending on your situation the process can take anywhere from weeks to months. Once you're pre-approved, you'll receive a conditional letter stating the exact amount of loan for which you're approved.

Step 4: Final loan approval

Armed with your pre-approval letter, you make an offer on your dream home and it's accepted. Next, you'll need the lender to conduct an appraisal. An appraisal is official verification that you're buying the home at a reasonable market value. Scheduling a time for a licensed appraiser to visit the property is frequently the longest part, and may take up to two weeks. Once the appraiser makes a home visit, the approval (or rejection) comes through within a day or two.

Now that you've passed the appraisal process, you're ready to close on this loan -- and a house.

When looking for the best in Real Estate, choose New Mexico Mountain Properties and let us help you find your dream home. With amazing homes for sale in Angel Fire and Taos, you are sure to find that perfect home . Maybe land for sale in Taos and Angel Fire might be what you are looking for to build your dream, or live off the land in our stunning Earthship homes for sale in Taos. How about a fabulous condo for sale in Angel Fire that puts you close to the slopes? Whatever your fancy, we are here to assist. Call us at 575-377-2626 in Angel Fire 575-758-5852 in Taos or speak directly to a broker at 575-770-3306 we are here to serve and welcome you to our growing community.

6 Ways To Quickly Pay Down Your Mortgage

6 Ways To Quickly Pay Down Your Mortgage

Taking out a loan in your 20's or 30's and paying it off in your 50's or 60's can seem stressful and you get a nauseating feeling in your stomach when looking at your mortgage statement and seeing those dreaded lines: "360 payments" and "Payoff Date: 2044." But there is hope, and you don't have to be stuck with a 30-year schedule.

Here are six ways you can speed up your repayment clock:

1. Refinance into a 15-year or 20-year loan

Although a 30-year mortgage is what most people consider, most financial companies offer you the option of taking out a 15- or 20-year loan instead. These loans are paid off faster,and applied to principal reduction, rather than interest. With a 15-year loan you will face a larger payment but contrary to what others say, it is not double of a 30 year loan. Each month, you will divert a larger sum of your payment toward your principal and interest payments. The total interest paid over the life of the loan will drop since you will reduce principal faster, and 15- and 20-year loans are usually at a lower interest rate.

2. Make payments as if you've refinanced

Should you refinance or simply make extra payments toward your original loan? Refinancing from a 30 into a 15-year loan does have it's drawbacks. First, you lose out on flexibility. If an emergency arises you might not be able to pay the higher payments. Second, you will have to pay another round of closing costs, which adds up to a few thousand dollars. Which could take you a lot longer to reach the break-even point. If you are close to the end of your mortgage term it might not be wise to refinance, If you are concerned about the two drawbacks of refinancing, just make enough extra payments to pay off the rest of the loan instead.

3. Refinance into a 30-year with a lower interest rate:

If you took your mortgage out before the recession, when interest rates were around 5–6%, now would be a good time to reduce that rate. If you have good strong credit and a low debt-to-income ratio, check into about refinancing into a 30-year loan at a lower interest rate. Once you refinance, your monthly payments will go down instead of going up. This will save you interest over the life of your loan, but it will not speed up your payoff date... it will actually make it longer.

4. Find cheaper homeowner's insurance

The lower your homeowner's insurance premiums is, the less you will pay each month. Be smart look around at other insurance companies and ask about bundle pricing and take advantage of a lower rate. Request a higher deductible. If you are able to lower your homeowner's insurance premium, your monthly mortgage payment will drop. Keep making the same payment, so that you can put the difference toward speeding up your payoff date.

5. Make biweekly payments:

Instead a one lump sum mortgage payment each month, make a biweekly payment instead. How will this help speed up the process? Well, since there are 26 biweekly pay periods each year, you will actually make one extra month's payment every year without knowing or feeling it.

6. Downsize or monetize:

You can always downsize into a cheaper home if you want to be free of your mortgage. Sell your home and use that equity to make a large payment on a new more efficient home. Or you can monetize your existing home. Add an apartment to your home to gain rent. You can use this rental income to pay down the mortgage. Yes, you might face challenges with renters but a fully paid off mortgage might just be worth it.

New Mexico Mountain Properties in Taos and Angel Fire, NM will gladly assist you in locating that perfect piece of Taso or Angel Fire Real Estate . We have scenic mountain land for sale in Angel Fire and Taos, or perhaps our off-the grid homes for sale in Taos might give you that serenity you've always wanted. If it's excitement and smaller living your looking for try our condos for sale in Angel Fire or Taos Ski Valley. Whatever your looking for, we at New Mexico Mountain Properties are here to help to find your dream. Our knowledgeable brokers go that extra mile so you don't have to. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos or 575-770-3306 and speak directly to a Broker. We are here to serve and welcome you to this breathtaking mountain area.

Is An FHA Loan Right For You?

Is An FHA Loan Right For You?

FHA loans can be appealing, but beware of these potential pitfalls that can cost you over time.

Federal Housing Established loans or FHA loans, are mortgages with relaxed restrictions, they sometimes offer borrowers a better deal compared to conventional loans, but before deciding it's important for you to know the pros and cons, to understand how this type of loan works.

Here are 4 things to look at..

1) Advantages Of FHA Loans:

FHA loans make homeownership more accessible because you can qualify for a down payment of just 3.5%, even with a low credit score. You can also use money that was gifted to you for the down payment. This is a great way for young and first-time homeowners who have struggled to try and get the 2% down payment all at once or for those who have had credit problems in the past.

2) Understanding How FHA Loans Work:

FHA loans can get costly due to the borrower needing to pay a premium which is insured by the Federal Housing Administration, which means if you default on your payment the FHA promises to pay back the bank that made the loan so the lenders take no risk. That's why FHA loans have more relaxed restrictions than conventional lenders do.

3) Potential Pitfalls:

Understanding the downside to FHA loans is very important. For example, the fees can cost you with an FHA loan which come from the underlying insurance fees. The current fee costs you 1.75% with an ongoing fee of 0.85%. So because of that permanent insurance payment, it makes FHA loans far less attractive to the buyer.

4) Is An FHA Loan Right For You:

Anyone with a credit score of less than 600 would be better served with an FHA loan due to the fact that most conventional lenders are looking for scores above 700 to even consider you. Also. those in the buyers market can benefit as well because it allows you to pay up to 6% of closing costs compared to the 3% other lenders allow, and to anyone who a down payment of less than 5%, regardless of your credit history. Do keep in mind the pitfalls though with having to maintain the insurance fees for many years that could end-up costing you a lot in the end.

So if your looking into FHA loans these tips might help with understanding what your pros and cons are..

If your looking to purchase or sell a home, come to New Mexico Mountain Properties and see our vast selection of homes for sale in Angel Fire as well as our Taos homes for sale. If it's land you are looking for, our mountain view land for sale in Angel Fire and Taos might just spark your interest. Take a look at our condos for sale in the Taos Ski Valley and Angel Fire Resort, some just steps to the slopes. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos or 575-770-3306 and speak directly to a broker. Our dedicated and energetic staff is here to serve and welcome you to our beautiful area.

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