How to Prepare to Buy A Home in Fairbanks Alaska This Summer
While inventory may be lower than it has been in past months, there is no shortage of homebuyers in the Fairbanks Alaska area! Buyer traffic has continued to rise and with May having just begun, it's safe to say we are in for a busy summer in the local real estate market!
If you have just started your home search in Fairbanks, Anchorage, Eagle River, Wasilla, Palmer or North Pole, now is the perfect time to prepare to make your home purchase a reality. Below are five ways Alaskan buyers can prepare to purchase a home this year:
Research your creditYour credit score will be an important piece of the puzzle when meeting with a lender. They will comb through your credit, pulling your scores from the three major reporting bureaus, to determine if you are eligible to purchase a home in Alaska and if you have not done the research, you may not know what they will find. Take some time to browse your credit report and if necessary, allow time to correct errors and improve your score before applying for a mortgage.
Know what you can afford
It's best to enter your home search with an idea of how much you can afford in Fairbanks, Eagle River, Anchorage, Palmer, North Pole, and Wasilla. Use a mortgage calculator to input all expenses—including monthly utilities and your projected down payment—until you find a range that is both realistic and comfortable. Remember, stretching your price range may not seem like big deal before closing on the property, but could cause major homeowner headaches down the road.
Save for a down payment
While the days of 20 percent down requirements are gone, saving even a small down payment can help you greatly when applying for a mortgage. Some mortgage programs allow for as little as 3 to 5 percent down, but potential homebuyers will need to plan for how much that means in their price range and start as early as possible.
Start a rainy day fund
In addition to saving for a down payment, Alaskan homebuyers may want to begin saving for an emergency fund. As a homeowner, you will find issues, both large and small, pop up from time to time— some as simple as needing to replace light fixture or door and some as massive as needing to replace the roof or undergo plumbing repairs. With this savings, you can avoid the stress of shelling out the money from your own pocket when these problems arise.
One of the wisest steps in your homebuying journey will be meeting with a lender to get pre-approved. Not only does this tell a seller that you are serious about the home purchase, but that you are able to buy the home and ease their fears of a sale falling through. With a pre-approval letter in hand, your chances of beating another bidder who hasn't taken this essential step are also much higher!
Madden Real Estate is here to answer all of your questions about buying a home in Fairbanks, Anchorage, Eagle River, Wasilla, Palmer, North Pole and the surrounding communities, as well as provide information about current homes for sale or lenders in the area. Do not hesitate to reach out to us today!