Real Estate Weekly

A real estate agent is a REALTOR® when he or she is a member of the NATIONAL ASSOCIATION OF REALTORS (NAR).

The term REALTOR is a registered trademark that identifies a real estate professional as a member of the NAR who subscribes to its Code of Ethics. View the Code of Ethics here: http://www.realtor.org/realtororg.nsf/pages/codeofethics-consumerquestions.

NAR is composed of residential and commercial REALTORS who are brokers, salespeople, property managers, appraisers, counselors, and others engaged in all aspects of the real estate industry. Members belong to one or more of some 1,700 local associations and boards and 54 state and territory associations of REALTORS.

You should definitely use a real estate broker. Real estate brokers can help you with the numerous, and often confusing, details involved in purchasing a home. They can also answer your questions about the neighborhood, schools, traffice volume, and more. Real estate brokers will help you to determine how much you can afford and assist in locating potential houses. With their instant access to houses currently and newly placed on the market, real estate brokers can save you a lot of time. When you are ready to make an offer on a house, real estate brokers can make suggestions about structuring your deal to save you the optimal amount of money. They will explain the different mortgages, assist you in filling paperwork, and answer any last-minute questions you may have. If you are concerned about the broker's motives in helping you purchase a home, you do not need to worry. They receive their payment from the seller, not from you.

When you pay rent, that money is gone forever. When you own a house, though, you are making an investment. You can deduct the cost of your mortgage loan interest from your federal income taxes and usually from your state income taxes, if applicable. This will save you a lot of money every year since most of your monthly house payments consist of interest. In addition, you can also deduct the property taxes you pay as a homeowner. The value of your house also may increase over the years, meaning that if you ever decide to sell, you may be able to make a profit. Finally, owning a home allows you to enjoy something that belongs solely to you, a place where you can express and share your personal style.

Educate yourself and pursue a professional Realtor to assist you.

Purchasing a home is the major investment of your life and there are many important steps involved. If this is your first home you'll experience many new concepts. We'll try to address many in this list of questions.

Today, there are many ways to educate yourself about the market. We'd suggest reading real estate publications (like ours) and websites that will give you an idea of prices in areas that may interest you.

Then search through our list of real estate professionals and choose one that serves the area that interests you. Most real estate professionals are REALTORS, which means they are members of the National Association of REALTORS and must adhere to specific ethical guidelines. Additionally, all real estate professionals must be licensed by the state they operate in. (Other FAQ's deal with how you can determine if they are licensed.)

Call a REALTOR that interests you and possibly meet them to see if you're comfortable with them. They can help you locate additional properties that may not be in our publications or online or may not even be on the market yet. We'd certainly encourage you to contact any of those on our website or in our publications. Also, read through the appropriate FAQ's here - we'll be adding more all the time.

Buying a home is a huge investment - probably one of the largest - in a your life. Buying a home will be a large part of your budget, which means that buying, and even renting, a home can often cause many budget problems. This is especially true if you decide to buy or rent a house that you cannot afford.

In general, you should keep the following guidelines in mind. Purchase or rent a home only if the payments - mortgage, taxes, maintenance, et cetera - do not exceed 38% of your net spendable income. Do not finance a second mortgage for a down payment, and do not finance closing costs. If you are seeking to trade up, make sure that the trade up is a need and not merely a desire. Finally, commit to paying off the house as soon as possible and avoid second mortgages and home equity loans.

Many options are available when purchasing a home. You should investigate these options fully before deciding to purchase a house. One option is to use cash, which is the best choice. You can purchase a small house, improve on it, and sell it for a profit. You can then continue this process with a larger house until you are finally able to purchase the house you desire - debt-free.

You can also purchase a house with an institutional loan. Institutional loans are issued by banks, savings and loans, credit unions, and mortgage companies. You should compare loans and consider the following variables: down payments, closing costs, fixed-rate mortgages, adjustable rate mortgages (ARM), and payday mortgages. For more information about these variables, visit our other questions.

Another option is assumable mortgages. These mortgages can benefit you if the interest rate and monthly payments are lower than the current rates. These mortgages do have some risk associated with them; the seller may require a written liability release from the buyer.

You can also purchase a home with government financing. Subsidized government loans can be obtained through local lending institutions. Some of these loans require a very small or no down payment.

Seller financing can sometimes be an option. In this scenario, the seller finances the house for you. You will usually get financing for one to two percent lower than current interest rates, and you can save on closing costs.

If you are having trouble finding funds for the down payment, you may be able to use equity sharing. This means that you find an investor who is willing to loan a portion or all of the necessary funds. With equity sharing, you sign an agreement with the investor stating how long you must live in the house before you can sell, and, if you sell, how much equity you will pay the investor.

Finally, you may be able to purchase a house with assisted financing. In this situation, your parents help make the down payment for the house, which results in joint ownership. Usually, your parents will make the house payment every month and charge you a monthly rent that is equal to the amount of the house payment.

The answer to that question is dependent upon a number of factors including the cost of the house and the type of mortgage you may get. In general, you will need enough money to cover three costs: earnest money, down payment, and closing costs (see definitions for these three costs in the FAQ section Financing and Mortgage Loan).

When you make an offer on a house, your earnest money is put into an escrow account. If your offer is not accepted, your earnest money will be returned to you. If your offer is accepted, your earnest money can be put toward the down payment or closing costs. If you can pay a larger down payment, you will pay smaller, monthly payments in the future. The closing costs cover various lender charges and other processing fees. When you apply for a loan, your lender will give you an estimate of the closing costs.

A real estate broker is very helpful when making an offer on a house; however, there are a few, general considerations. One, is the asking price of the house in line with prices of similar homes in the area? Two, is the home in good condition or will you have to spend a substantial amount of money in repairs? Three, how long has the home been on the market? If it has been on the market for several months, the seller may be willing to consider a lower offer. Four, how much will the mortgage be? Make sure that you can afford whatever offer you make. Five, do you really want the home? If your offer is close to the asking price, it is more likely that your offer will be accepted. If you really want the house and know that there is competition for it, you may even want to offer more than the asking price.

One basic cost will be utilities. The seller of the house will have this information, and you should ask how much utilities tend to run. Another cost may be homeowner or condo association fees. These fees vary, so again, you should either ask the seller directly or have your broker get this information for you. You will also have to pay property taxes, and you may have city or county taxes. These taxes are usually included in your mortgage payment, but you should certify that they will be rolled into your payments.

Earnest money is the deposit you make on a house when you first submit your offer. Paying the deposit shows the seller that you have a serious interest in the house.

A down payment is an amount you pay when you first purchase a house. The payment is anywhere from five to 20 percent of the total cost of the house. If you make an initial, larger down payment, you will make smaller monthly house payments.

Closing costs are costs and financing fees that must be paid up-front or rolled into the loan. These costs can amount to several thousand dollars.

A mortgage is a lien on a property/house that secures a loan and is paid in installments over a set period of time. The mortgage secures your promise that you'll repay the money you've borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial situation.

A mortgage requires you to pledge your home as the lender's security for repayment of your loan. The lender agrees to hold the title to your property (or in some states, to hold lien on your title) until you have paid back your loan plus interest.

If you do not repay your mortgage loan, the lender has the right to take possession of your house and sell it in order to satisfy the mortgage debt.

You may want a fixed-rate mortgage that will ensure that your interest rate will remain the same for as long as you have your loan. If you decide that you like the stable, predictable payments of a fixed-rate loan, then you must choose from a variety of repayment terms - 15 years, 20 years, and 30 years are the most common loan terms.

If you're confident that your income will increase steadily over the years, or if you plan to move in a few years and you aren't concerned with potential rate increases, then you may want to consider an ARM.

ARMs feature an interest rate that moves up and down as market conditions change. Although an ARM usually offers a lower initial interest rate, your mortgage payments change periodically (usually once or twice a year, sometimes more) after the introductory period. Interest rate changes typically are subject to two caps, one for each adjustment period and one for the life of your loan.

For example, a typical ARM that adjusts annually may have a per adjustment cap of 2 percent and a lifetime cap of 6 percent. Caution should be used when venturing into this type of mortgage since you cannot foresee what the market will bare in the future and/or if you wish to refinance, you cannot be certain what your credit will look like in the future.

Balloons offer lower interest rates for shorter term financing-usually five, seven, or ten years. At the end of this term, they require refinancing or paying off the outstanding balance with a lump-sum payment.

Again, caution should be used when venturing into this type of mortgage since you cannot foresee what the market will bare in the future and/or if you wish to refinance, you cannot be certain what your credit will look like in the future.

A reverse mortgage, also known as a home equity conversion, involves selling the equity in a home while retaining the right to live in the home until death. A reverse mortgage turns a home's equity into regular cash payments. Reverse mortgages have an age restriction - you must be 62 years of age or older - and there are some disadvantages that may outweigh the benefits. If you are considering a reverse mortgage, you should seek legal counsel before making a final decision. For more information, visit our Helpful Links.

You may want to consider the mortgage plans offered by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).
Properties purchased under these programs must meet certain minimum standards and eligibility requirements.

First, you should use our mortgage calculator to see how much mortgage you can afford. If the amount you can pay is significantly less than what you would have to pay for a house that interests you, you may need to wait a while before making an offer on a house. You should also contact a real estate broker. Brokers can determine your loan eligibility. They also know what kinds of mortgages lenders offer and can help you choose a lender who may have a program that will work for you. Another good idea is to get pre-qualified for a loan. This means that you apply for a mortgage prior to looking for a home. Not only will this help you to know how much you can afford to spend, but it will also facilitate the home-buying process once you find the home of your dreams.

Shopping for a loan is like making any other big purchase. Would you purchase the first flat-screen TV you saw at some store or would you visit a couple of stores before deciding which flat-screen to buy? Take your time and see what is available. You can get a loan from a bank, a savings and loan, a credit union, a private mortgage company, or a state government lender. Different lenders are going to offer different interest rates and loan fees. These rates are going to affect your monthly payments and how much home you can afford, so visit with several lenders before you make a final decision.

In general, it takes anywhere from three to six weeks to be approved for a loan.

Your mortgage payment can be separated into four parts: the principal, the interest, the homeowner's insurance, and the property taxes. The principal is the amount you actually borrowed. The interest is a payment to the lender for the money you borrowed. The homeowner's insurance insures the house against damages caused by fire, smoke, theft, and other hazards. Homeowner's insurance is typically required by lenders. Property taxes are the annual city and county taxes assessed on your property, divided by the number of mortgage payments you make in a year.

Most loans are for 30 years, although 15-year loans are available. During the life of your loan, you will probably pay two to three times more in interest than you will in principal. This is why you should commit to paying off your house as soon as possible. Due to the way loans are structured, you will primarily pay interest the first few years, and, in the final years of the loan, you will pay principal.

You can save a lot of time by coming prepared to a meeting with your lender. You will need several items. First, you will need your social security number. If you are married and your spouse is filing for the loan with you, you will need to bring your spouse's social security number as well. Second, you will need copies of your checking and savings accounts for the past six months. Third, you will need to disclose your other assets, such as stocks and bonds. Fourth, you will need to bring a recent paycheck stub that details your earnings. Fifth, you will need to list all of your credit card accounts and the monthly amount owed on each card. Sixth, you need to bring a list of account numbers and balances due on outstanding loans, such as a car loan. Seventh, you will need copies of your federal income tax return for the past two years. Eighth, you will need to provide the name and address of someone who can verify your employment. Your lender may ask for additional information. Do not be hesitant to ask your lender what other items you will need to bring to your meeting.

Most Visa and Mastercard (and other credit card) debt is considered unsecured debt. With unsecured debt, your creditors cannot take anything from you if you do not pay them. However, an overdue account stays on your credit record for about 7.5 years.

You should try to deal with your credit problems before they get turned over to a debt collector. If you have not already done so, you should contact your creditors and try to work out another payment schedule that is manageable for you. Sometimes this may involve switching due dates to
one that comes closer to the dates you receive your own paycheck, so that you can better budget the payments you need to make when you have money.

Or, it may mean agreeing to stop using a particular credit card and making a series of scheduled payments to satisfy past debts. These may be at lower payment amounts than your original payments, but creditors are generally interested primarily in being paid, and any initiative on your part to pay them goes a long way in obtaining their
cooperation.

It is usually a good idea to have in mind what kind of payments you can afford to make on each account and to write it down, so that when you call the creditor, you can explain to them that while you cannot make payments in the current amount, you ARE able to make them in the suggested amount.

Your mortgage payment. If you make your mortgage payments, you are not in danger of losing your house. Should your other creditors sue you on your other debts, such as your credit card debts, they would have to try to collect the judgment from you, and under Texas law, your home would be considered "exempt property." "Exempt property" is property that creditors cannot take in trying to execute a judgment against you. The only creditors who can take exempt property are those who have a security agreement covering that property, in this case your mortgage lender. As long as you are able to pay your mortgage, you will not lose your house.

It depends. Not everyone’s situation is the same. Home equity loans can be helpful for some. It is important to remember that you would be switching from an unsecured debt to a secured debt if you take out a home equity loan. If you do not make your new home equity monthly payment, you could lose your home. Some factors to consider when making the decision are:

How you will change your credit card usage.
Whether you will have more than enough consistent monthly income to make the monthly payments on the new loan.
Whether you are on a fixed income.
Whether you have already finished paying off your home.

To get your debts under control, you should carefully choose between your basic needs like food, electricity and medication, and things you can live without like satellite TV, cable TV, or a cellular telephone.

To better manage your existing debt, make a list of everything you owe and figure out what kind of debt it is. You might want to get help in learning to manage your debts and to rebuild your credit. You can call Consumer Credit Counseling Service at 1-800-878-2227 for credit counseling. The first thing you should do is stop using any credit cards if you cannot make the required payments on them.

You should not add to your existing debt burden if you cannot afford to do so. Non-payment and late payments may affect your credit rating and your ability to get credit in the future. Although creditors usually consider a number of factors in deciding whether to grant credit, most creditors rely heavily on your credit history.

If you are being contacted by a collection agency, write a letter to request that they stop calling you. Even if you do not dispute the validity of these debts you can send a written letter to each collection agency and tell them:

1) you are unable to pay the account right now and if you are able to do so in the future, you will (if you like, you can explain why you are unable to pay right now);
2) you are asserting your rights under the Federal Fair Debt Collection Practices Act and demand the collection agency to stop communicating to you regarding this debt.

You should send the letter by certified mail, return receipt requested to each collection agency.
Once a collection agency receives your letter, it is prohibited from communicating with you regarding the debt except to:

1) make one last attempt to settle the account;
2) notify you that they have received your letter and they will not communicate with you, or
3) notify you of the filing of a lawsuit against you.

Yes. However, if it has been over four years since you last made a payment on your account, you have a valid defense to the lawsuit. If you do get sued, you can easily represent yourself and explain why you cannot or should not pay.

The creditor company would get judgment against you. A judgment is an order by the court to pay but a judgment does not force you to pay the debt if you do not have the money. In addition, the companies CANNOT take your home, your household goods, or your automobile. You should not sacrifice your basic needs such as food, housing, utilities, medicines, transportation, etc. attempting to pay a judgment.

No. You cannot be put in jail.

Las Cruces Population Characteristics

- Population: 74,267 (over 86,000 est. 2006)
- 48.5% male / 51.5% female
- Median Age: 31.2 years
- 51.7% Hispanic, 48.3% non-Hispanic (42% white)
- Median income: $30,375
- Median home value: $91, 200

Occupation (by type)

- Management, professional, and related: 36.9%
- Service: 18.2%
- Sales and office: 28.4%
- Farming, fishing, and forestry: .2%
- Construction, extraction, and maintenance: 8.5%
- Production, transportation, and moving materials: 7.7%

Home Values

- Under $50,000: 5.9%
- $50,000 to $99,999: 55.2%
- $100,000 to $149,999: 25.8%
- $150,000 to $199,999: 8.6
- $200,000 to $299,999: 3.9%
- $300,000 to $499,999: 0.5%
- $500,000 to $999,999: 0.1%

A Native American people inhabited what is now called Las Cruces, New Mexico, long before the first Europeans arrived. Called the Mogollon, they hunted small game in the Mesilla Valley as far back as 200 A.D. Later generations used water from the Rio Grande to cultivate corn. Though the Mogollon vanished mysteriously between 1200 and 1450, traces of their pottery, multilevel pueblos, and petroglyphs survive today.

Europeans brought change to the Mesilla Valley. Don Juan de Oñate arrived in 1598 by commission of the King Felipe II of Spain. Onate’s goal was to find the legendary Seven Cities of Gold. His route along the Rio Grande soon established the Camino Real de Tierra Adentro, or Royal Road of the Interior, shepherding trade between Mexico City and Santa Fe. Oñate never found his Seven Cities of Gold, yet his expedition proved fruitful. Oñate claimed the province of Santa Fe de Nuevo Mexico for Spain, and he served as its first governor. The early explorer thus marked European settlement in North America decades before the Pilgrims founded Plymouth Rock.

Dona Ana, a village nestled against modern Las Cruces, became the first of these lasting settlements. Founded in 1842, Dona Ana bears the name of the pioneer landowner who settled and likely died there in the late 1600’s. Little is known about her, though legends mark both her kindness to strangers and her cruelty toward her workers. Our Lady of Purification Church became the first permanent building constructed on the site and remains there today in newly-restored glory.

The Mexican-American War ended in 1848 with the signing of Treaty of Guadalupe Hidalgo. Dona Ana became part of the U.S. territories, while land west of the Rio Grande remained part of Mexico. Confusion arose from newly-arrived settlers. United States Army Lieutenant Delos Bennett Sackett arrived not only to help restore order, but to protect the settlers from Apache raids. He plotted out land for a new town, and in doing so, Las Cruces was born.

Some residents, preferring to remain under Mexican custom and rule, crossed the Rio Grande to form a new settlement, the village of Mesilla. Their plan was short-lived. Franklin Pierce signed the Gadsden Purchase in 1854, acquiring land on both sides of the river for purposes of building a railroad. The Santa Fe Railroad was soon established with a stop in Las Cruces. The first train arrived in 1881, and the town grew by leaps and bounds.

- Las Cruces became incorporated as a city in 1907.
- New Mexico became our 47th state in 1912.