Buying a home in Albuquerque involves more than your down payment. If you’re planning your budget, the extra line items at closing can feel confusing. You want clear numbers, who pays what, and simple ways to reduce cash due at signing. This guide breaks down typical buyer closing costs in Bernalillo County, what affects them, and practical strategies to keep more cash in your pocket. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaids you pay at settlement in addition to your down payment. They include lender fees, title and escrow charges, appraisal and inspections, county recording fees, prepaid taxes and insurance, and any HOA fees.
According to consumer guidance, most buyers in New Mexico and nationwide pay about 2% to 5% of the purchase price in closing costs, excluding the down payment. You can review how these items appear on your Loan Estimate using the CFPB’s helpful overview of closing costs and disclosures.
How much to budget
Most financed purchases in Albuquerque fall within that 2%–5% range. Your total depends on your loan type, down payment, lender fees, whether there is an HOA, the closing date, and what you and the seller negotiate in the contract. To compare offers, ask each lender for a detailed Loan Estimate and review the cash-to-close line by line.
Typical Albuquerque line items
Below are common buyer costs, who usually pays, and what to expect locally. Exact amounts vary by provider and property.
Lender fees and prepaids
You typically pay the origination, processing, underwriting, credit report, and prepaid interest. Origination is often 0.5%–1.5% of the loan amount, plus small third‑party charges for things like credit reports. Prepaid interest depends on your closing date. Some buyers choose a lender credit in exchange for a slightly higher rate to reduce cash due at closing.
Appraisal
Lenders almost always require an appraisal. In Albuquerque, a standard single‑family appraisal typically runs about $400–$700, with higher fees for large or complex homes or multi‑unit properties.
Home inspections
You usually pay for a general inspection and any specialty inspections you choose. Expect $300–$600 for a general inspection, with optional items like sewer scope, roof, HVAC, pest, or radon ranging $100–$600 each.
Title insurance and escrow
Title insurance protects against title defects, and the escrow/closing agent manages settlement and recording. In New Mexico, it is common for the seller to pay the owner’s title policy, while you pay the lender’s title policy and certain escrow or settlement fees. These are negotiable. Combined title and escrow charges often range from a few hundred to a few thousand dollars, depending on price and state rate schedules.
Recording and county fees
Bernalillo County charges administrative recording fees for deeds and mortgages. These are typically modest, usually in the tens to low hundreds of dollars. For current fees and recording requirements, check the Bernalillo County Clerk.
Property taxes and prorations
You will reimburse the seller for any prepaid property taxes and fund your new escrow for future tax payments. New Mexico’s effective property tax rates are relatively low compared with many states, generally around 0.7%–0.8% statewide per recent analyses. Always verify the home’s current assessed value and tax amount with the Bernalillo County Assessor.
For broader state comparisons, you can review the Tax Foundation’s data on property taxes by state.
Homeowners insurance
Lenders require proof of coverage, and you often prepay the first year at closing. Costs vary by home age, coverage level, and replacement cost. Albuquerque premiums are generally moderate relative to high‑risk coastal areas. Get quotes early to set accurate expectations.
HOA transfer fees
If the property is in an HOA or condo association, there may be an estoppel letter and transfer or document fees. These are often $100–$400, plus prorated dues. Who pays is negotiable and should be spelled out in your contract and HOA documents.
Survey and flood certification
Lenders sometimes require a survey and a flood cert. Surveys often run $400–$900. Flood certifications are usually a small cost.
Wire and bank fees
Expect outbound wire fees from your bank and settlement wire fees, commonly $20–$50 per wire.
Local practices to know
- Title and escrow: Albuquerque closings are handled by local title companies and national underwriters. It is common for sellers to pay the owner’s title policy, but this is not universal. Confirm allocations in your purchase contract and in the title company’s preliminary settlement estimate.
- Property taxes: Taxes are assessed by Bernalillo County. You will see prorations at closing and will fund your escrow. Verify current amounts with the Assessor.
- Recording: Recording fees for deeds and mortgages are small but required. Review current fees and document requirements on the County Clerk site.
- HOAs: Some Albuquerque neighborhoods have no HOA; others do. Always order the HOA estoppel early to confirm dues and any special assessments.
Ways to lower cash to close
- Compare lenders and Loan Estimates. Ask for at least two to three quotes and compare origination points, lender credits, and third‑party fees. The CFPB’s Loan Estimate explainer can help you evaluate line items.
- Negotiate seller concessions. Depending on loan rules and market conditions, you can request the seller pay part of your closing costs. Your lender will confirm allowable amounts for your loan type.
- Use down‑payment assistance. The New Mexico Mortgage Finance Authority offers programs for eligible buyers that can reduce down payment and sometimes closing costs. Explore options on the MFA homebuyer page.
- Clarify title policy payments. If the seller pays the owner’s title policy, your upfront costs decrease. Make sure this is written into your purchase agreement.
- Time your closing date. Closing late in the month can reduce prepaid interest because you pay interest only for the remaining days of that month.
- Shop third‑party providers. Get quotes for inspections, surveys, and title services. Ask the title company for a written estimate early so you can plan.
Example budget on a $350,000 home
Using the 2%–5% guideline, you might budget roughly $7,000 to $17,500 for closing costs, excluding the down payment. Many financed purchases land around $5,000 to $12,000, depending on loan type, lender fees, title allocations, HOA charges, and prepaids. Your exact number will come from your lender’s Loan Estimate and the title company’s settlement worksheet.
Your next steps
- Get preapproved and request a detailed Loan Estimate that shows estimated cash to close.
- Ask your lender which items can be reduced with lender credits or covered by seller concessions.
- Request an itemized estimate from a local title company as soon as your offer is accepted.
- Confirm in writing which closing costs the seller will pay, including title policy allocations.
- If there is an HOA, order the estoppel early and review any transfer fees or assessments.
- If you might qualify, contact the New Mexico MFA or a HUD‑approved counselor to discuss assistance.
Ready to map out your numbers and negotiate a smart contract? Reach out to April Rodas for a clear plan, local insight, and calm, responsive guidance from preapproval to closing.
FAQs
How much should I budget for closing costs on a $350,000 Albuquerque home?
- Plan for about $7,000–$17,500 using the 2%–5% rule, with many financed deals landing around $5,000–$12,000 depending on loan type and negotiations.
Who usually pays the owner’s title policy in Albuquerque?
- It is common for the seller to pay the owner’s policy, while buyers pay the lender’s policy and some escrow fees, but this is negotiable in the contract.
Can closing costs be rolled into my mortgage?
- Some costs can be offset with lender credits or seller concessions, but many prepaids like insurance and initial escrow deposits must be paid at closing.
Do I need cash for inspections in Albuquerque?
- Yes, buyers typically pay for general and specialty inspections out of pocket during the inspection period.
Are there local programs to help with closing costs?
- Yes, the New Mexico Mortgage Finance Authority offers programs that may help eligible buyers with down payment and sometimes closing costs.
