3 Common Alaska Real Estate Myths to Ignore When Buying a Home
If you're on the fence about buying a home in Fairbanks, Eagle River, Palmer, Wasilla, North Pole, or the surrounding areas, you might be surprised to know that what's been holding you back is a complete myth!
There are dozens of myths flying around the Alaska real estate market surrounding everything from necessary credit scores to the documents you need to qualify for a mortgage.
Myth: You need a perfect credit score
Many would-be homebuyers are held back from the process simply because they don't think their credit score is high enough. According to real estate industry resource Keeping Current Matters, the average credit score of all approved loans was 726. Don't assume you won't be approved! Your first step should always be meeting with a lender to determine which home loan programs you qualify for in Alaska.
Myth: You need 20 percent down
Another common myth in real estate is that you need 20 percent down to buy a home or the loan won't be approved. Think again! Many homebuyers today can purchase homes with as little as 3 percent down— even zero down depending on the type of loan! According to Keeping Current Matters, first-time homebuyers often put down an average of 6 percent.
Myth: You should wait for interest rates to drop
By historical standards, today's interest rates are still incredibly low! Consider this— in the 1980's, interest rates were hovering around 12.7 percent; in the '90s, 8.12 percent! Locking in today's still historically low rates is still a smart decision if you're planning to buy a home!
When you're ready to get started on your Alaskan home buying journey in Fairbanks, Eagle River, Palmer, Wasilla, North Pole, or the surrounding areas, we'll be here to guide you through the process!
Contact our experts at Madden Real Estate for more information! We look forward to hearing from you!
The Madden Real Estate Team
Madden Real Estate with Keller Williams Realty Alaska Group
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