Why a real estate glossary?

Real estate has a lot of jargon. Our glossary covers 58+ Las Cruces and New Mexico-specific real estate terms in plain English to help buyers and sellers.

Can I suggest a term?

Yes. Email contact@mannypatino.com if you ran into a term that should be in the glossary.

Are these definitions legal advice?

No. The glossary is for educational use only. For legal advice on any specific transaction, consult a NM-licensed real estate attorney.

58 Terms · Las Cruces & NM

Las Cruces Real Estate Glossary

Plain-English definitions for 58+ Las Cruces and New Mexico real estate terms. From appraisal to zoning. Whether you're buying, selling, building new, or just trying to understand your closing disclosure, this is the dictionary you want.

A

Adjustable-rate mortgage (ARM): Mortgage where the interest rate adjusts at fixed intervals (typically after a 5, 7, or 10-year fixed period). Less common in Las Cruces in 2026 with most buyers preferring 30-year fixed.
Amortization: The schedule of monthly mortgage payments split between principal and interest. Early payments are mostly interest; later payments are mostly principal.
Appraisal: A licensed third-party valuation of a home, typically required by the lender. In Las Cruces, residential appraisals run $500-$650.
Appraisal contingency: Contract clause letting the buyer back out (or renegotiate) if the home appraises below the contract price.
APR: Annual Percentage Rate. The mortgage interest rate plus lender fees expressed as a yearly rate. Always higher than the quoted note rate.

B

Backup offer: A second-place offer the seller accepts in case the primary contract falls through. Common in competitive Las Cruces markets.
Buyer agent commission: The portion of the seller's commission paid to the buyer's brokerage. In Las Cruces new construction, the builder pays this directly.
Buyer's market: Market with more inventory than buyers, giving buyers negotiating power. Las Cruces in 2026 is balanced, tilting slightly buyer-friendly.

C

CC&Rs: Covenants, Conditions, and Restrictions. The HOA rules governing what you can and can't do with your property in master-planned communities like Sonoma Ranch and Picacho Hills.
Closing: The final step where ownership transfers from seller to buyer. In Las Cruces, typically held at a title company office and takes 30-60 minutes.
Closing costs: Fees paid at closing. Buyer side: 2-4% of price. Seller side: 6-8% (includes commission).
CMA: Comparative Market Analysis. A pricing analysis comparing your home to recent nearby sales. Patino offers free CMAs for any Doña Ana County address.
Concessions: Money the seller credits the buyer at closing, often to cover closing costs or repairs.
Contingency: Conditions that must be met for the contract to close. Common in Las Cruces: financing, inspection, appraisal, sale of buyer's current home.
Conventional loan: Mortgage not insured by FHA or guaranteed by VA. Typical requirements: 5-20% down, 620+ credit, 36-43% DTI.

D

Days on market (DOM): How long a listing has been actively for sale. Las Cruces 2026 average: 47 days. Patino listings average: 19 days.
Deed: The legal document transferring property ownership. Recorded with the Doña Ana County Clerk after closing.
Disclosure: Seller's written statement of known property defects. New Mexico requires sellers to disclose known material defects.
Down payment: Cash paid at closing toward the purchase price. Conventional: 3% min, FHA: 3.5%, VA: $0 for eligible vets, USDA: $0 for rural Doña Ana County.
DTI ratio: Debt-to-Income ratio. Monthly debt payments divided by gross monthly income. Conventional lenders allow 36-43%, FHA up to 43%, VA uses residual income instead.

E

Earnest money: Good-faith deposit a buyer puts into escrow when going under contract. In Las Cruces, typically 1% of purchase price (e.g., $3,000 on a $300K offer).
Equal Housing Opportunity: Federal law prohibiting housing discrimination based on race, color, religion, sex, national origin, familial status, or disability. All Patino transactions comply with EHO.
Equity: The portion of the home you own outright. Equals current value minus mortgage balance.
Escrow: A neutral third party (in NM, the title company) that holds funds and documents during closing.

F

FHA loan: Federal Housing Administration-insured mortgage. 3.5% down, more flexible credit. Includes upfront 1.75% MIP and ongoing monthly MIP.
Fixed-rate mortgage: Mortgage where the interest rate stays the same for the entire loan term. Most common Las Cruces choice in 2026.
Foreclosure: Legal process by which a lender takes back a home for non-payment. New Mexico is a judicial-foreclosure state, meaning court approval is required.
FSBO: For Sale By Owner. Selling without a listing agent. Statistically nets sellers 13-15% less than agent-listed homes.

H

HOA: Homeowners Association. Governs and maintains common areas in master-planned communities. In Las Cruces, Sonoma Ranch, Picacho Hills, Metro Verde, and the Metro Evolution communities all have active HOAs.
Home inspection: Independent third-party assessment of the home's condition. In Las Cruces, $375-$550 for standard SFR. We recommend even on new construction.
Homeowners insurance: Insurance protecting the home against damage. Las Cruces typical: $900-$1,800/year.

I

Inventory: Total active homes for sale in a market. Las Cruces 2026: ~640 single-family homes, 4.2 months of supply (balanced).

J

Jumbo loan: Mortgage exceeding the conforming loan limit (~$806,500 in NM for 2026). Stricter underwriting, slightly higher rates.

L

Listing agent: The real estate broker representing the seller. In Las Cruces, listing commission is typically 2.5-3% of sale price.
Loan estimate: Standardized 3-page form lenders provide within 3 business days of application showing rates, fees, and terms.
LTV: Loan-to-Value ratio. Loan amount divided by home value. PMI is required when LTV exceeds 80% on conventional loans.

M

Median home price: The middle home price in the market. Half sold for more, half for less. Las Cruces Q2 2026 median: $312,000.
MLS: Multiple Listing Service. The shared database real estate brokers use to list and search properties. Las Cruces operates under the Southern New Mexico MLS (SNMMLS).
Mortgage: A loan secured by real estate. The lender holds a lien on the property until paid off.

N

New construction: A home built by a developer/builder, sold pre-existing or to-be-built. In Las Cruces 2026: ~38% of active inventory. Patino represents buyers free at every active builder.
NMREC: New Mexico Real Estate Commission. The state regulator that licenses brokers. Manny Patino is licensed as a Qualifying Broker by NMREC.

O

Offer: A formal written proposal to purchase a property at a stated price and terms.
Origination fee: Lender fee for processing a mortgage. Typically 0.5-1% of loan amount.

P

PITI: Principal, Interest, Taxes, Insurance. The four components of a typical monthly mortgage payment.
PMI: Private Mortgage Insurance. Required on conventional loans when LTV exceeds 80%. Cancellable when LTV drops back to 80%.
Pre-approval: Lender's written commitment to lend up to a specific amount based on documented income, assets, and credit. Stronger than pre-qualification.
Property tax: Annual tax based on assessed home value. Doña Ana County effective rate: 0.74% (well below 0.99% U.S. average). NM caps owner-occupied annual increases at 3%.

Q

Qualifying Broker: New Mexico's higher real estate license tier. Required to operate a brokerage and supervise associate brokers. Manny Patino is the Qualifying Broker at Patino Real Estate.

R

RESPA: Real Estate Settlement Procedures Act. Federal law protecting consumers from kickbacks and undisclosed fees in real estate transactions.

S

Seller's market: Market with more buyers than inventory, giving sellers leverage. Las Cruces 2022-23 was a true seller's market; 2026 is balanced.
SNMMLS: Southern New Mexico Multiple Listing Service. The MLS covering Las Cruces and Doña Ana County. All Patino listings are syndicated through SNMMLS.

T

Title insurance: Insurance protecting against title defects (liens, claims, errors). NM custom: seller pays owner's policy, buyer pays lender's policy.
Title search: Investigation of public records to verify clear title. Done by the title company before closing.

U

USDA loan: Mortgage backed by the U.S. Department of Agriculture for rural properties. $0 down. Parts of Doña Ana County qualify.

V

VA loan: Mortgage backed by the Department of Veterans Affairs for eligible service members and veterans. $0 down, no PMI, includes funding fee. Common in Las Cruces with WSMR, Holloman, and Fort Bliss spillover.

W

Walk-through: Final buyer inspection of the property within 24 hours of closing to confirm condition is as expected.
Warranty deed: The most common type of deed in NM. Seller warrants clear title and the right to convey it.

Z

Zoning: Local government rules dictating how a property can be used. Doña Ana County zoning ranges from R-1 (single-family residential) to commercial and agricultural designations.

Term not in the glossary? Just ask.

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