5 Things to Avoid When Preparing to Buy a Home in Fairbanks AK
With spring just around the corner and the Alaska real estate market preparing to pick up for the busy season ahead, there are numerous buyers on the fence wondering about their first step. Should I get pre-approved? Should we wait until we have a 20 percent down payment?
All of the questions running through your head are important to answer to get a better handle on the mortgage process, and as your local real estate experts, we're breaking down the steps you should avoid so you can embark on your homebuying journey with few hiccups along the way.
Do Not: Wait until you have a 20 percent down payment
Mortgage rates today are still hovering around historic lows— but not for much longer! We've seen rates ticking upwards over the last few months and experts predict they could be over 5 percent by the end of the year. If you wait to purchase an Alaska home until you have 20 percent down, you could be paying much more in the long run than if you take the leap now! There are mortgage programs available for buyers with less than 20 percent down, so don't delay!
Do Not: Settle for your first quote
It is key to meet with multiple lenders before you decide on the best rate, program, and terms. If you settle on the first quote you receive from a lender, you could be leaving money on the table! Shop around and gather multiple quotes on the same day, then determine the best fit for you.
Do Not: Open More Lines of Credit
As an Alaska homebuyer, it is essential that you demonstrate your financial stability to lenders in order to secure a mortgage loan. One thing you will want to avoid is opening more lines of credit as this can bring down your credit score and signal a red flag to lenders who may get the idea that you don't have adequate funds to make a home purchase.
Do Not: Get Pre-qualified instead of pre-approved
Your pre-approval for a mortgage assures Alaska sellers that you are not only serious about buying their property, but you are also able to see the deal through to closing. But don't confuse pre-approval with pre-qualification! These are two different steps and pre-qualification does not require a buyer to produce any documentation to the lender. It does not carry the same weight or importance as a pre-approval as it does not guarantee you will be approved for the loan. Take the necessary steps to get pre-approved with your lender!
Do Not: Change jobs
This is not always a deal breaker when buying a home in Fairbanks, Anchorage, Palmer, Wasilla, Eagle River or North Pole, but it is recommended that you avoid changing jobs when applying for a mortgage, if possible. Lenders like to see at least two years of solid, stable job history when considering your ability to take on a home loan.
Ready to become a homeowner in Alaska? You can count on Madden Real Estate to walk you through the process, every step of the way! Give us a call today for more information about available properties or how you can begin!
We even offer a Love It or Leave It Guarantee!