There really are mortgage loans available for practically everyone in Alaska!
That being said, it is still true that the better qualifications you have, the lower your interest rate will be. But the fact remains, if you’re looking to buy a home in Alaska, you stand a good chance of getting into some type of home loan program. It's the interest rates or the down payments that vary.
As you may already know, there are so many benefits to home ownership. The question is, how do you find the right home loan that won’t stress you out down the road? The answer: by knowing exactly what your needs are, and asking the right questions.
What to do:
- Know your needs. Before speaking with a lender, know exactly what monthly dollar amount you feel comfortable committing to. (don’t “guess” or generalize) Take the time to do your own personal assessment, first. What’s your income? What are your monthly expenses? What are your current financial resources? (savings, retirement, disability, military benefits etc.)
Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the monthly amount and what value of home the monthly amount translates into. The upside is that a mortgage payment is typically less than paying rent…sometimes considerably less!
- Be wise! Do not put yourself in the position where you will be paying more each month than you intended simply because the dream home requires it. Believe it or not, many people have made this costly mistake which results in needless stress over finances. It’s seriously not worth it. You’ll be much better off buying a more modest property where you won’t be sweating it when those un-expected things in life happen.
So, be encouraged. Do your research on the types of mortgages available to you (there are many in Alaska) and find the one that best suits your needs. It will be different for each individual.
Things that impact your mortgage rate:
- What type of market are you in? (Anchorage is different than LA or Portland and different from the Mat-Su Valley or Kenai)
- Are the interest rates falling or rising?
- Do you want a fixed mortgage rate, where you will always know what your payment is going to be?
- What are your long-term goals? Do you plan to stay in your home for several years? Or do you intend to resell the property if you move away in the near future? Do you only need the mortgage for a short time?
All of the above (and more) factor into the mortgage rate and the type of home loan that will work out best for you.
In closing, My Favorite Realty in Palmer is here to help! We live here, too and invite you to come in and talk with us. There are resources you may not know about that can get you headed in the right direction. We're authentic, honest and easy to work with. Give us a call at (907) 746-4663.
