Question 1

How long does pre-approval take?

Accepted Answer

Most lenders can issue a pre-approval letter within 24 to 48 hours. Some online lenders offer same-day pre-approval. You will need to provide income documentation, bank statements, and authorize a credit check. Our preferred lender typically turns around pre-approvals within one business day.

Question 2

What is the difference between pre-qualification and pre-approval?

Accepted Answer

Pre-qualification is an informal estimate based on self-reported information. Pre-approval involves a full credit check, income verification, and underwriter review. Sellers in Albuquerque strongly prefer offers backed by a pre-approval letter because it shows you are a serious, verified buyer.

Question 3

How much do I need for a down payment in Albuquerque?

Accepted Answer

It depends on your loan type. VA loans require zero down. FHA loans need 3.5 percent. Conventional loans start at 3 percent for first-time buyers. New Mexico also has down payment assistance programs through the MFA that can provide $4,000 to $8,000 toward your down payment. Many of our buyers purchase with 5 percent or less down.

Question 4

What credit score do I need to buy a home?

Accepted Answer

FHA loans accept scores as low as 580 with 3.5 percent down, or 500 with 10 percent down. Conventional loans generally require 620 or higher. VA loans have no official minimum, but most lenders want 620 or above. The higher your score, the better your interest rate and the more you save over the life of the loan.

Question 5

Can I buy a home with student loan debt?

Accepted Answer

Yes. Lenders look at your debt-to-income ratio, not just total debt. Most programs allow up to 43 to 50 percent DTI. For FHA loans, student loans in income-based repayment can use the actual monthly payment amount rather than the full balance. We work with lenders experienced in qualifying buyers with student debt.

Question 6

What are closing costs in New Mexico and how much should I expect?

Accepted Answer

Typical buyer closing costs in Albuquerque run 2 to 3 percent of the purchase price. On a $375,000 home that is roughly $7,500 to $11,250. New Mexico does not have a transfer tax or stamp tax, which saves you money compared to most states. It is also common to negotiate seller concessions to cover part of your closing costs.

Question 7

Do I qualify for a VA loan?

Accepted Answer

You may qualify if you served 90 or more consecutive days during wartime, 181 days during peacetime, 6 or more years in the National Guard or Reserves, or are the surviving spouse of a veteran who died in service. Active-duty members at Kirtland AFB are eligible immediately. We can help you check your eligibility in about 5 minutes.

Question 8

Can I use my VA loan benefit more than once?

Accepted Answer

Yes. Your VA entitlement can be used multiple times. If you paid off your previous VA loan or sold the property, your full entitlement is restored. Even with a current VA loan, you may have remaining entitlement for a second home. This is common for military families PCSing to Kirtland who still own a home at their previous duty station.

Question 9

What is the VA funding fee and can it be waived?

Accepted Answer

The VA funding fee is a one-time charge of 2.15 percent for first-time use with zero down, or less with a down payment. It can be financed into the loan. Veterans with any service-connected disability rating, even 10 percent, are completely exempt from the funding fee. Purple Heart recipients are also exempt. On a $375,000 home, that is over $8,000 in savings.

Question 10

What down payment assistance programs are available in New Mexico?

Accepted Answer

The New Mexico Mortgage Finance Authority offers several programs: HomeNow provides up to $4,000 as a non-repayable grant. FirstDown offers up to $8,000 as a deferred second mortgage at zero percent interest. The HERO program helps teachers, first responders, healthcare workers, and military with below-market rates. Programs can often be combined.

Question 11

What is the difference between FHA and conventional loans?

Accepted Answer

FHA loans have lower credit requirements (580 versus 620) and lower down payments (3.5 percent), but require mortgage insurance for the life of the loan. Conventional loans drop PMI once you reach 20 percent equity. For buyers with 700 or higher credit and at least 10 percent down, conventional usually wins on total cost. For first-time buyers with limited savings, FHA is often the better path.

Question 12

Can I buy a home in a rural area near Albuquerque with no money down?

Accepted Answer

Yes, through a USDA loan. Eligible areas near Albuquerque include the East Mountains (Edgewood, Tijeras, Sandia Park), Placitas, parts of Bernalillo, Los Lunas, and Belen. USDA loans require zero down payment, have lower mortgage insurance than FHA, and offer competitive rates. Income limits apply, generally around $103,000 for a family of four in Bernalillo County.

Question 13

How does my BAH work with a VA mortgage at Kirtland AFB?

Accepted Answer

Your Basic Allowance for Housing is not taxable income and goes directly toward your mortgage payment. For example, an E-6 with dependents at Kirtland receives $1,662 per month in BAH. Many Albuquerque homes in the $300,000 to $375,000 range have total monthly payments within BAH. Use our mortgage calculator to see exactly how your BAH covers different price points.

Question 14

What happens if interest rates drop after I lock in my rate?

Accepted Answer

Most lenders offer a one-time float-down option during the lock period if rates drop significantly, usually 0.25 percent or more. After closing, you can always refinance if rates drop substantially. VA streamline refinances (IRRRLs) make this especially easy for VA borrowers with minimal paperwork and no new appraisal required.

Question 15

Should I get a 15-year or 30-year mortgage?

Accepted Answer

A 30-year mortgage has lower monthly payments and more flexibility. A 15-year mortgage saves significant interest over the life of the loan and typically comes with a lower rate. Most of our buyers choose 30-year for the lower payment and make extra principal payments when they can. Use our mortgage calculator to compare both scenarios for your price range.

Question 16

Can I buy a home while PCSing to Kirtland AFB before I arrive?

Accepted Answer

Yes. We work with military buyers remotely every day. Ashley Taylor specializes in this process. She can send you video walkthroughs, coordinate virtual showings, and handle everything through closing while you are still at your current duty station. Your VA pre-approval can be started immediately with your orders and a statement of service from your current commander.

Pay Grade	With Dependents	Without
E-5	$1,527/mo	$1,266/mo
E-6	$1,662/mo	$1,359/mo
E-7	$1,761/mo	$1,440/mo
O-1	$1,497/mo	$1,224/mo
O-3	$1,851/mo	$1,500/mo
O-5	$2,286/mo	$1,827/mo

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