Find a Home
Pine Mountain Realty, Inc., as a full service real estate agency serving Ruidoso and surrounding communities for almost twenty years, it is a great place to start. We are members of the area multiple listing service (MLS) and have access to all regional listings for you to consider as well as properties that may not be, for some reason, on the system. Our very experienced and knowledgeable staff are delighted to have you come in and discuss your real estate needs, look over what is available and help you make what might be the most important purchase of your life. We are in a position to email or fax information with photos in most cases if you prefer.

Buyer's Broker
Pine Mountain Realty, Inc., also as a full service real estate agency, can help you find that special place you have been dreaming about or desperately need and represent you as a real estate Buyer¹s Broker. In this case the buyer broker owes full fiduciary responsibility and loyalty to the buyer and would enter into a formal agreement that spells out the responsibilities of both parties.

Some of the benefits of using a buyer broker in addition to having a lot of the leg-work done for you, the broker will research selected properties to identify any problems or issues to help the consumer in making a decision prior to making an offer. Also, present offers and negotiate for the consumer and help in securing appropriate structural inspections and financing.

What can you afford?
"Know what you can afford" is the first rule of home buying, and that depends on how much income and how much debt you have. In general, lenders don't want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts.

Loan Pre-qualification
Check with several lenders before you start searching for a home. Most will be willing to calculate what you can afford and pre-qualify you for a loan. A pre-qualification is an informal discussion between you and the lender and involves a simple calculation considering several factors, but primarily your income. There are no guarantees with a pre-qualification, but it will be useful when you make an offer on a home.

The price you can afford to pay for a home will depend on the following:

1.	Gross income
2.	The amount of cash you have available for the down payment , closing costs and cash reserves.
3.	Your outstanding debts
4.	Your credit history
5.	The type of mortgage you select and current interest rates

Principal, Interest, Taxes and Insurance
Another number lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your new home loan, property taxes and hazard insurance ( PITI ). If required, monthly homeowners association dues and/or private mortgage insurance will be added to your PITI. This ratio should fall between 28 to 33 percent, although some lenders will go higher under certain circumstances. Your total debt-to-income ratio should be in the 34 to 38 percent range.

Debt-to-Income Ratio
A ratio used by some lenders limits the mortgage payment to 28 percent of the borrower's gross income and the mortgage payment, combined with all other debts, to 36 percent of the total. The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent -- and still promptly make the payment each time -- has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income. Mortgage loans requiring little or no outside documentation often can be obtained with down payments of 25 percent or more of the purchase price.

Down Payment
A down payment is usually 20 percent of the purchase price of the property. If it's less, most banks require you to buy private mortgage insurance. PMI typically adds several hundred dollars to the cost of the loan, but you won't need PMI when you can prove that you have at least 20 percent equity in the property. Equity is the value of the home minus the outstanding loan balance. But to remove the PMI, most lenders require that you obtain -- and pay for -- an appraisal.

Paying with Gift Money
Many first-time buyers purchase their home with a loan or a money gift from their parents. Lenders will ask for a gift letter stating that no repayment of the gift is expected. In addition to the letter, a lender can ask for two or three months' worth of statements for the account where the down payment funds are located. If the money was recently placed into that account, the lender may ask where it came from and request verification of that source as well.

Gifts -- with the proper documentation -- can be from relatives, friends, an employer, church, municipality, or nonprofit organization. Lenders often have stricter restrictions on gifts from friends and relatives other than parents. Also, if you put less than 20 percent down, some lenders may require that a portion of the down payment be your own cash, not a gift. If you want to use a gift as part of your down payment, check with individual lenders to learn the restrictions of specific private or government-insured mortgage programs.

Closing Costs
Closing costs are the fees for services, taxes or special interest charges included in the purchase of a home, i.e., upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are included in the loan, they must be paid when the home is closed.

Studies show that the closing costs, are often more costly than many buyers expect. But there are some possible ways to save:

Negotiate
Negotiate with the seller to pay all or part of the closing costs. The lender must agree to this as well as the seller.

Get a no-point loan
Points are fees paid to persuade a lender to make a mortgage loan. Each point is equal to 1 percent of the loan principle. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties. But buyers who are short on cash and can qualify for a higher interest rate may find a no-point loan will significantly cut their closing costs.

Seller financing
This kind of arrangement usually does not entail traditional loan fees or charges. Shop around for the best loan deal. Each direct lender and each mortgage brokerage has their own fee structure. Call around before submitting your final loan application.