Answers to Common Home Buying Questions in Anchorage, AK
Looking upward at the majestic Chugach Mountains outside of Anchorage is an awe-inspiring experience for travelers, and such amazing vistas often make an indelible mark on anyone who has been to this southern Alaskan city. Living through the cold, dark winters is well rewarded with endless summer days and incredible weather. Choosing to buy a home in Anchorage is best handled with research and knowledge of how the home buying process works. Below, we’ve compiled a list of answers to some of the most common home buying questions asked:
What Should I Do Before Buying a Home?
To begin the home buying process, we advise you to start by getting pre-qualified for a loan. Get a credit report and check your score. Talk with a lender and see how they are willing to loan you and get an idea of how much you can afford before looking around homes. What would be the point of wanting this home, if you can’t afford it? By getting pre-qualified, it lets you know ahead of time an estimate of what price range to look at. Lastly, you should be saving money for a down payment. Typically, down payments go anywhere from 10 to 20 percent on the home’s price.
How Much Can I Afford?
It’s easy to see what a monthly payment for a mortgage might be from online tools; however, this process doesn’t cover all of the expenses. Remember that there are loan fees associated with buying the property as well as several costs of ownership like HOA fees, property taxes, and routine maintenance in the home. Factors all these things into your budget to see what exactly you can afford.
Talk to an Agent about How Much You Can Afford
Why Should I Buy Instead of Rent?
Although the cost of renting may be slightly less than owning a home, the difference between these two living options is clear. Owning a home means you get to customize it the way you want, and as time passes, your home investment builds equity. With more equity, your home builds value, which you can capitalize on when you go to sell the property.
How Do I Choose the Best Mortgage Loan?
To determine the best type of mortgage, a future Alaskan should ask himself the following questions:
- Does the family expect more income in the future?
- How long does the family plan to stay in the home?
- Does the buyer favor a fixed or variable mortgage payment?
- How close to retirement is the buyer?
Based upon the answers to these questions, a lender will have advice on the best type of mortgage loan for you.
How Do I Make the Right Offer on a Home?
With all the hard work that goes into preparing for and finding a home, one of the essential steps in landing the residence is making the offer. A real estate agent is usually the best tool for this process. Get research data on current home prices and comparable properties in the area. From those price points, you can get a good estimate of where to make your offer.
It’s not uncommon to experience a “back and forth” style of offers and counteroffers with the seller during the buying process. The difficulty lies in making an offer that’s not so low that the seller rejects it outright, and not too high that the buyer pays more than what the home is worth.
Buying a Home in Anchorage, AK
Alaska offers a lifestyle experience different from every other state in the country. Majestic views in the “Land of the Midnight Sun” are unforgettable. Living in the northernmost state in the United States is a true adventure. Now that you know a little bit about the home buying process, it’s time to start searching for the right home for you: