Alaska Home Buyers Could Face Tougher Mortgage Requirements
Alaksa home buyers have the wind at their back when it comes to mortgage interest rates. According to industry surveys by Freddie Mac, interest rates for a 30-year, fixed-rate mortgage are hovering below 3.5%.
The catch: mortgage lenders are feeling stingy these days. The bar for mortgage approvals has been set higher. Major lenders have announced credit score minimums of 680 to 700. Depending on the type of mortgage you're seeking, and the lender you're working with, the down payment requirements can be as high as 20%. Debt-to-income ratios also need to be lean and mean.
Before applying for a mortgage, Alaska home buyers can do a lot to shore up their credit standing. This takes some time, but it's a worthwhile investment! The better your credit profile, the better your mortgage offers. See our prior blog post about checking your credit.
Building up a down payment can require patience and effort. If you currently own a home in Alaska, the sales proceeds from your current home can assist you with making the down payment on your new property. Ask us for your free market value consultation!
If you are saving up cash for your down payment, the key is to have a good savings plan and stick to it. You may also be able to use cash gifts from friends or relatives as part of your down payment. Talk to a mortgage lender before you accept any cash gifts, however. There are rules about documenting the transfer of funds, and you need to follow the lender's exact instructions.
If you do not have deep pockets or great credit right now, don't be discouraged. Mortgage underwriting guidelines tend to tighten up when the economy gets rocky, but then eventually smooth out again.
When you are ready to talk to a mortgage lender, let us know! We'll be happy to refer you to trustworthy lenders in Alaska who will explore all of your financing options.
When you are planning to buy or sell an Alaskan home, we can help you! Our experience will give you the advantage you need in today's ever-changing market. Contact Madden Real Estate for expert guidance!
The Madden Real Estate Team
Madden Real Estate with Keller Williams Realty Alaska Group
Follow us on Facebook!