Buying your first home in Anchorage is probably one of the biggest financial decisions you'll ever make. Real estate times have changed over the last few years, however. Just a decade ago, it seemed that all you needed to buy a home was a handshake and a smile. Nowadays, however, you're going to need a decent credit score, a steady source of income and around 20% of the Anchorage purchase price for a downpayment to get the absolute best deals (and there are still plenty of those to be had). There are several programs available if you don't quite have 20% down, so don't worry. Here are some other things you should do to prepare yourself to purchase your first Anchorage home.
Beginning three to six months before you start looking for your perfect Anchorage abode, you should pull your credit report from all three agencies (TransUnion, Equifax and Experian). You are legally entitled to one free credit report from each agency every year through AnnualCreditReport.com. Creditors don't always report information to every credit reporting agency. So, the information may vary greatly from agency to agency. Check for errors. When you find them, send the appropriate reporting agency a detailed letter explaining in writing the error and why you believe it should be removed. Most mortgage companies will take the middle score of the three reports to determine your interest rate. For example, if you have a score of 720 on TransUnion, 670 on Equifax and 630 on Experian, they are going to use the 680 as a basis for your interest rate. That's why you want your reports to be as error-free as possible.
Save, save and save some more. Curb your spending as much as possible so that you can put more money away for the downpayment on your Anchorage property. The more you put down, the less you have to borrow. That makes your monthly mortgage payment even lower, giving you the opportunity to possibly pay it off sooner. This will save you thousands of dollars in interest. It also shows mortgage companies that you are financially responsible, thus making you a more attractive candidate for a home loan.
Interview several Anchorage real estate professionals before hiring one. You will be working closely with this person for at least a couple of months, if not more, so you want to be comfortable with them. Ask friends and relatives for recommendations for an Anchorage REALTOR®. Read testimonials from past clients. You wouldn't trust your child to just anyone. Why trust your financial information to just anyone?
Finally, visualize what you want in an Anchorage home. It may sound a little hokey, but the key to a successful, smooth real estate transaction is to know exactly what you want and/or need in your home. That will also help your REALTOR® narrow the list of homes they show you to just the ones you really might be interested in. How large/small does it need to be? How many bedrooms do you want? Do you need an attached or detached garage? How many vehicles do you want the garage to house? What area of the city are you interested in living? Do you need to be close to work or is a commute alright? How much of a payment can you afford? Nailing down these details will help buying your first home in Anchorage go much easier than it would otherwise.
Comments(0)