3 Tips for Getting Ready to Buy a Home in Fairbanks this Spring
Are you planning to buy a home in Fairbanks this spring? If so, you’re not alone. We’re quickly approaching the busiest season of the year in the Alaskan real estate market. Over the next few weeks, you’re likely to see a new crop of homes for sale in addition to an army of hopeful homebuyers ready to call Fairbanks “home” in 2014. If you’re a first-time homebuyer or if it’s been a while since you’ve gone through the home buying process, it’s important to know that there are a few items you should start thinking about right away. To ensure you’re fully prepared to tackle the Alaskan real estate market, here are three tips for getting ready to buy a home in Fairbanks this spring.
Be prepared with a down payment
It’s generally recommended to put 20 percent down when you buy a home in Fairbanks. However, this amount can vary depending on the type of mortgage you’ll be applying for. For example, government loans like FHA and VA loans carry lower down payments, or no down payment at all. For those seeking a traditional mortgage, it’s important to note that you’ll have to pay for private mortgage insurance if you don’t come up with a 20 percent down payment.
Check your credit score
It’s important to know your credit standing before applying for a mortgage. Your credit score will not only determine if you qualify for a home loan, it can also affect the interest rate you receive. You can check your credit score for free once per year with TransUnion, Equifax, and Experian. Be sure to examine each report thoroughly to make sure you have time to clear up any errors before buying a home in Fairbanks.
Get pre-approved for a mortgage
In a competitive real estate market, home sellers favor buyers who have been pre-approved for a mortgage. Though the terms are commonly used interchangeably, pre-approval differs from pre-qualification in that pre-approval actually includes having your financial information run through the underwriting process. This will give you a pretty accurate picture of how much you can expect to borrow from your lender.
Buying a home in Fairbanks is one of the biggest, yet most exciting, milestones you’ll reach during your lifetime. Before you start scouring the Internet in search of your new abode, be sure to keep in mind the three important items above. Your success in the Alaskan real estate market will depend on it! Once you’re ready, give the professionals at Madden Real Estate a call. We’re ready and willing to guide you through the home buying process from start to finish. We look forward to working with you!
Wes Madden, CEO/Broker
Madden Real Estate
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