first time homebuyer

How to Succeed When Buying a Home Solo

Buying your first Alaskan home is one of the biggest financial decisions that you can make! Traditionally people think of buying a home as a newly married couple sharing the financial and emotion burden of their new forever home. These days financial independence or life circumstances are leading more people to buy homes as individuals. This can feel like a daunting task but there are ways to be successful.

Do your research to find the right mortgage
Take the time to shop around for the right mortgage. You don’t need to settle for the first pre-approval that you receive. Solo buyers may receive different maximum loan amounts, rates, and terms from different lenders. Exploring your options can help you find the best option for your circumstance and increase your changes of preparing for a purchase with a strong plan.

You do you
As a solo buyer you don’t have to think about the preferences of others. You can choose how much house you want and how much you’re willing to spend on it. This control will allow you more flexibility when making your choice.

Be flexible with your location
Location is important, but as a solo buyer you may be limited to certain cities and markets. Your income bracket and credit history alone will determine the location you will be able to acquire. Just be ready to be flexible with where you’re willing to live in a competitive market.

Invest in your future with an income producing property
As a solo buyer you could use your homeownership as a financial payoff rather than for a lifestyle change. You could purchase a multi-family home that has other rentable areas. Your mortgage could easily be paid or a good portion of it paid by renters or roommates. An income producing home that you can either live in or rent out can help you continue down the path of financial independence.

Remember your budget
It’s important to plan and think beyond the immediate purchase price. Homeownership comes at a cost. You will need to be prepared to pay all the bills, expenses, insurance, maintenance, warranties, housing fees and of course the mortgage. Make sure you have some money set aside to prepare for these expenses.

Keep tabs on your needs versus your wants
Society places a lot of ‘shoulds’ on us. As a solo buyer it’s important to keep things in perspective and not be distracted by bells and whistles. Make sure that the price tags are worth it in the long run. If you’re offered incentives and gifts by developers, you’ll often end up paying for them in the purchase price anyway. Analyze the costs of perks, upgrades, and upsells and determine if it’s worth it to you in the end.

It’s alright to ask for help
Independence doesn’t mean that you must go it alone. Successful people often have help. Homebuying is an emotionally taxing process and having friends or family nearby can really help you and provide resources and experience. Even better having a reliable agent can help you through the process and provide an opinion when you need one.

If you’re looking to purchase your first home here in the Anchorage, Eagle River, Wasilla, and the Mat-Su Valley we are here and ready to help you through your homebuying experience.

in Real Estate Tips

The 411 on Creating a Budget for a New Home

Are you finally ready for the next step? Buying your first home is one of the biggest purchases we make in our life. We spend our life dreaming of our future home and then one day we can finally make it a reality. Before you jump into this huge financial decision, it’s best to step back and evaluate you circumstances. Taking the time to determine how much you can afford is a big first step. You will want to calculate the costs before you even go to your first open house. We want to help set you up for success, so we’ve gathered a few tips to help you to review and adjust your finances prior to taking the leap into being a first-time homebuyer.

Focus on your income
Budgets are important for everyone to have. Sometimes it can feel intimidating to look at your finances, but it’s an important first step. The first step is to calculate your income sources after tax for the month and this will be your starting point.

Be aware of your current expenses
Every dollar should have a home. Take a moment to list all your monthly expenses so you can see where your money goes each month. It’s important to include any debt such as car payments, credit card payments, student and personal loan payments, etc. Once you have these basic expenses calculated you will have the dollar amount you have remaining for housing costs.

Get an idea of your new regular expenses
Homeownership comes with some additional costs that you weren’t responsible for previously. You will need to factor this into your usual household expenses such as mortgage and utilities.

Some things that are important to take note of:

  • Home Maintenance – A used, or existing home, will always have a certain level of maintenance that should be factored in. If you can afford to buy a brand-new home, you won’t have to worry about typical home maintenance for some time. There’s also the option of homeowner warranty programs offered to help you with expenses that do come up. If you can’t afford a new home, it’s a good rule of thumb to set aside 1 to 2% of the value of your home for upkeep.
  • Property taxes and homeowner’s insurance – When budgeting your monthly mortgage payment, you will want to be aware if your homeownership and property taxes are included or if you’ll need to make a separate payment. If they are included, you should take note that they costs can fluctuate each year based on changes in taxes and insurance premiums. If you are paying separately, it’s important to set aside money in your budget for these expenses so you aren’t caught off guard when the bill arrives.
  • Homeowners association fees – If you end up purchasing within an HOA community you’ll need to set aside money each month toward the yearly fees. These fees are used to maintain common areas in a neighborhood and are collected either monthly or yearly.

Strengthen your finances
After you are aware of where your money is going, it’s time to take charge and make it go where you want. Take a moment to review any areas where you can adjust your spending. Evaluate if you can save money in any areas or pay down debt in order to increase the amount of money available for housing costs.

Start building your down payment
Take a moment to get pre-qualified for a mortgage and then create a savings plan. Once you know how much money you’ll need for a down payment you will be able to plan accordingly and avoid one of the biggest challenges to overcome.

Budgeting for a new home is one of the smartest moves you can make as you move toward homeownership. You may occasionally have to revisit and adjust over time as your financial situation changes. One more thing to remember is to try and build an emergency fund of 3-6 months of expenses. If you have any other questions or concerns about budgeting for a new home, we are happy to help!

in Real Estate Tips

5 Tips for First-Time Alaskan Home Buyers

Are you ready to buy your first Alaskan home? There are many pivotal points in life that we consider part of ‘adulting’ and one of the main big purchases in our lives is our first home. There’s a lot that we aren’t taught growing up about buying our first home. This major milestone is full of benefits, but it’s important to get the facts and do your research first. Before you post your “First home” announcement on social media take the time to learn from those who came before you with a few tips.

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in Moving Tips / Real Estate Tips