Your Timeline for Buying Alaska Real Estate
Despite rising rates nationwide, including rising housing prices, it's a great time to break into real estate— no matter if it's your first time purchasing or your fifth. If you're on the fence about whether now is the best time to buy a home in Fairbanks or Anchorage, the answer is yes! Consider the following as timeline, your guide to preparing to buy Alaskan real estate. Madden Real Estate is here to help and happy to answer any questions you may have along the way!
Plan in Advance
If this is your first time purchasing a home in Fairbanks or Anchorage, it's time to use your handy mortgage calculator. You can determine whether now is the right time for you to switch to homeownership by weighing the costs of owning vs. renting. More often than not, the costs of owning a home prove a better investment than renting (a recent study found that owning a home is 38 percent cheaper than renting), but see what makes sense for you. These calculators are helpful as they factor loan rates, taxes and projected housing prices in the area.
Tackle Your Finances
One year before you plan to buy a home in Alaska, dive into your finances and iron out any wrinkles you find. For instance, credit report errors can take months to fix, so get a head start in finding and correcting in that area. Now is the time to buy and you'll be better off if your finances are looking their best. "Interest rates remain the envy of even your grandparents," said the vice president of mortgage publisher HSH.com. If you can, also take the time to pay down your debts and start saving for a potential downpayment on your new Alaskan home.
Make a Budget
About six months prior to your home purchase, sit down and figure out exactly how much home you can afford in the Alaskan real estate market. You can use a mortgage calculator again to enter in specifics like a projected home purchase price, plus insurance and taxes. Once you have an idea of your comfortable purchase price range, you can research other important aspects of homeownership like utilities. These are all necessary to factor into your budget before you set out to purchase a home.
Make It Official
You've figured your budget and cleaned your finances. Now it's time to make it official! Meet with your lender to get pre-approved for Alaskan real estate. "It's the No. 1 thing you want in your back pocket when you go shopping," reported an economist for Zillow. This letter of pre-approval not only shows the home seller that you are serious about purchasing the property, but that you have the funds to back it up!
Madden Real Estate will be on your side for your entire homebuying journey! Have questions about what it takes to successfully buy a home in Alaska? Contact us! We can talk you through the process and help you take advantage of this great opportunity to break into real estate!