The 2016 real estate market in Alaska is already off to a strong start. In fact, this spring alone is expected to be the best and busiest in over a decade, according to the chief economist at Realtor.com.
Demand is high as both seasoned and first-time buyers alike begin the home search for their perfect property, home values are on the rise which puts sellers in Anchorage and the Mat-Su Valley in a great position, and of course, mortgage rates are still hovering around record lows. But that doesn’t mean everyone is confident about their ability to take advantage of the thriving real estate market this year— many buyers will hold off simply because they doubt their ability to qualify for a mortgage.
As your local real estate experts in Anchorage, Palmer, Wasilla, Eagle River and the surrounding communities, Northern Edge Real Estate can answer any questions you have about becoming a homeowner this year! We’ve also included three items below that you will ultimately need to purchase a home in Alaska:
Have you researched your credit score recently? This is a wise step to take in order to determine if you will need to work on improving this number prior to applying for a mortgage. This is also the one factor that seems to scare would-be Alaskan homebuyers the most as they believe credit score requirements are much more strict than they actually are! While a score of 720 or higher will open you up to the best rates and terms, you do not need a perfect score to purchase a home. A lower score will also allow you to qualify for a mortgage, but it is always best to meet with a local lender to discuss your options.
Before you write off becoming a homeowner this year simply because you do not have twenty percent to put down on a home, it’s important to note there are mortgage programs in place that allow for little to zero down— A VA loan, for instance! You will want to keep an eye on your potential LTV ratio, or loan-to-value, as well which weighs how much the property is worth and how much you plan to borrow. This will play a big role in your qualifying for a mortgage this spring.
When lenders look over your finances to determine if you are able to take on a mortgage, one factor they will consider is your employment history. They want to confirm you are able to pay back the amount you will be borrowing for your new home. Having two years or more in the same position may help the mortgage process to move along faster than for someone who hops from job to job. Something to keep in mind!
If you are ready to purchase a home in Anchorage or the surrounding Mat-Su Valley, do not hesitate to contact our experienced team at Northern Edge Real Estate! We’re here to help!