Maybe the most popular question real estate agents field on a regular basis, understanding when it’s a good time to buy in Alaska isn’t exactly easy. While a real estate agent may start to consider the current market, the answer to this question really depends on who’s asking.
It’s not all about how good or bad the market is or whether it’s a seller’s or buyer’s market. Here’s how you can determine if it’s a good time to buy a home in Alaska, for you.
What are the Current Market Conditions?
If you’re asking this question, you’re probably interested in getting a good deal when the market conditions are good. If home prices are low and so are interest rates, the market conditions favor the buyer. However, when prices are higher or bidding wars are breaking out over good homes, it may not be the right time to buy, according to the market conditions.
How’s Your Credit?
Unless you plan to pay cash for your new home, your credit score will factor into the decision. You’re entitled to a free credit report every year, so you can find out what your score looks like and if anything should be fixed before you buy a new home. Most lenders will take all three credit scores and use the one falling in the middle to determine your interest rate or if you even qualify for a mortgage.
Are you employed?
Employment and income will also be factored into the lender’s decision. If you’ve been employed for many years and you make a steady income, you may qualify for a lower interest rate. Combining your income, employment and credit score will ultimately decide your interest rate, which is a huge factor in whether it’s a good time for you to buy in Alaska.
Do you have the Necessary Down Payment?
Another important factor is the down payment. Most home loans will require at least 10% down. The down payment can range from 3.5% up to 20%, depending on the lender and your overall financial situation. It will come out to a large chunk of money and if you don’t have it, you’re not ready to buy.
Is it the Right Time to Buy a Home in Alaska?
Yes, it’s a great time to buy a home in Alaska; if you’re in the right position to buy. If you’re finances are in order, you have a solid credit score, you’ve worked at your job for 2 years or longer and you have the cash for the down payment, it’s a good time to buy.
Of course, if you’re asking this question based on market conditions, it all depends on the current interest rates (at the time of writing, they are very low) and the home prices in the area you plan to purchase. The absolute best time to buy a home is, however, when you find the home of your dreams!