| Financing
Financing your Fairbanks Real Estate
When buying Fairbanks real estate there is more to it than just heading out and writing an offer for a home. Having your ducks in a row ahead of time and being well prepared can save you thousands in the long run when buying Fairbanks AK real estate.
The steps to successful financing
Get a pre-approval letter. This may be one of the first things you should do when preparing to buy a home. As a buyer, you can hold in your hand the keys to what seller's are looking for in a buyer. Sit down with your lender and go over such issues as:
- Your credit score
- All you sources of income
- Any and all debt and loans
- Any bankruptcies or foreclosures
- Extra payments needed in a mortgage
By learning these things ahead of time, you can have a much better idea of how much home you can afford and can show the seller you are a serious buyer.
Pre-approve with an in-state lender. An in-state lender is a key decision in getting financing for your future home. Alaska lenders are familiar with many of the nuances of our market and are less likely to let deals fall through due to Alaska-specific issues we see everyday. Plus, an Alaskan lender is capable of originating Alaska Housing Finance Corporation loans, offering Alaskans great financing alternatives and discounts for energy rated homes. Listed below are some trusted mortgage loan specialists in Alaska:
Examine your finances. How much can you afford to spend? (see my Sedona real estate partner for this excellent article on how much home you can afford). While a lender will tell you how much you qualify for, it's up to you to figure how big a payment fits into your budget. What monthly dollar amount do you feel comfortable committing to? Remember to consider related costs such as insurance and taxes, as well as interest and principle.
Consider the loans out there:
Many people are experiencing now what lender and mortgage brokers did to them a year or two ago. People are foreclosing, abandoning and refusing to pay because the loan they signed on for two years ago now has shot up to double what they agreed upon in the first place. This is called an ARM; an Adjustable rate mortgage and it does whatever the market is doing at the time. So when rates sky rocket, so does your loan. In the past couple years this has caused many people to have to give up their homes because they were not aware of the consequences of the loan at the time.
 Shop Around. When you're ready to get a loan, explore your options. You can choose either a direct lender or a mortgage broker. Be sure you understand all the details of you loan and that there is nothing you feel uncomfortable about. If you lender gives you the feeling that you are wasting their time and they can't spend the time to help you thoroughly understand it, maybe you should look elsewhere.
A direct lender has money to lend and makes the final decision on your loan. Brokers are intermediaries who choose from many lenders. A broker may be able to help find you a loan if you have special financing needs, but he or she will also receive a percentage of what you borrow.
While you're shopping for a loan, also look for the best loan costs. These may include:
Check your credit report. Do you have credit problems or owe money to the IRS? Buying a new home may still be a possiblity. Contact a financial advisor or tax resolution service to find solutions. When speaking to a lender, they should be able to provide you with a copy of several credit reports for you to be aware of. Look over these things and make sure you know everything you can about your own credit.
One of the features of reverse mortgages is that there is no such repayment scheme required in such mortgages. There is no need of any repayment as long as the borrower or any co-owner occupies the property. For more information have a look at the presentation on this page on reverse mortgage.
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