Preparing for the Hidden Costs of Buying Your First Home in Alaska
Buying your first home in Alaska is an exciting process! There are dozens of factors to consider— the number of bedrooms in your ideal home, square footage, garage size, yard, and of course, location. But perhaps the most important to consider? The costs!
A home is undoubtedly one of the largest purchases you will make in your life and it pays to be prepared. In fact, researching all of the costs involved—down payment and monthly mortgage, to name a few—ahead of time will make your home buying process a much smoother one. As your local real estate experts in Anchorage, Fairbanks, Eagle River, Palmer, North Pole, Wasilla and the surrounding areas, Madden Real Estate is sharing some of the hidden costs of buying your first home below, to ensure there are no surprises or obstacles as you begin this journey.
Using a mortgage calculator is a great idea when determining your budget for a home in Alaska. You can input factors like a potential property's purchase price, your down payment and even estimated homeowner's insurance and PMI (private mortgage insurance) if your down payment is less than 20 percent. However, maintenance costs like yard upkeep, unexpected repairs and higher utility bills should be considered to determine how much you can really afford in a home.
Did you know a large number of homebuyers today are unaware of closing costs? These costs cover variables of the transaction like the agent, title and other settlement fees. And while it is true that some sellers will agree to cover all or a portion of closing costs if your offer is formulated that way, it is always wise to talk these over with your lender as you shop for a mortgage.
The home inspection allows a buyer in Anchorage, Fairbanks, Eagle River, Palmer, North Pole, or Wasilla to know exactly what issues are present with the property or those that could arise in the future. The inspection is typically paid for by the buyer, unless your offer arranges for the seller to pay, and can total as much as $500.
Buyers do have the opportunity to purchase a home warranty with a property for additional security and peace of mind. For a few hundred dollars per year, homeowners can rest assured that any major systems or appliances that fail within the first year will be covered by the warranty and not need to be paid for out of pocket, aside from a deductible.
We also offer a Love It or Leave It Guarantee, which means if you buy a home through us and are not completely happy with that home, we will list it for free while you search for one you do!