Misinformation About Buying A Home in Alaska Is Holding Back Would-Be Owners
With the rising costs of rent and mortgage rates that continue to dip below expected levels, dreams of homeownership are becoming quite commonplace for many renters in Alaska. However, many would-be buyers are holding back this year due to misinformation about what it takes to become a homeowner.
A new survey from Bankrate.com found that nearly half of all current renters say they haven't purchased a home yet because they don't think their credit score is high enough or they don't have enough money saved for a down payment.
So what does it take? It's important to keep the following two factors in mind before you jump to conclusions about your ability to purchase a home in Alaska this year!
Credit ScoreAnother study from Fannie Mae recently found that 59 percent of Americans "don't know" or are misinformed about what credit score is necessary to buy a home. In addition, 86 percent do not know what an appropriate debt-to-income ratio is when it comes to being approved for a mortgage. The latest reports show that the average credit score on closed conventional loans was 754, with the average on closed FHA loans was 687 and for VA loans, 706.
Remember that many factors go into determining your ability to take on a mortgage for a new home in Anchorage, Fairbanks, North Pole, Palmer and Wasilla, so it is important to gather all of the factors before you write off your ability to become a homeowner.
The Bankrate survey also found that nearly one-quarter of all buyers "don't know" how much they need for a down payment. And while 20 percent down may be stuck in homebuyer heads as the "norm" in the real estate market, the truth is that buyers can get an FHA loan with as little as 3.5 percent down or depending on mortgage programs, even zero percent down.
Don't let the down payment aspect of your home purchase hold you back from scoring your dream home and settling in before home prices and mortgage rates begin to rise. Our team of experienced agents at Madden Real Estate can also help you research if you're eligible for certain First-Time Homebuyer programs!
Many non-homeowners in Fairbanks, North Wainwright, North Pole, Palmer, Wasilla and the surrounding areas make assumptions about their ability to buy a home when in fact, they are more creditworthy than they think! Most do not do the necessary research ahead of time or consult with a local real estate expert to determine how ready they are for mortgage approval.
Let Madden Real Estate be your guide to purchasing a home in Alaska this year! We are here to answer any questions you have about what it takes to become a homeowner in Anchorage, Fairbanks, North Pole, Palmer, Wasilla and the surrounding communities.
Give us a call today!