This blog series will be an 8 part discussion that will explain the basic steps to purchase a home here in Alaska.

After reading this series, you should have the basic understanding of what it takes, what is required from you, and all parties involved in the home purchasing process.

The first step to buying a house is to get pre-approved, or pre-qualified with a lender or banking company.

Why is this important? Looking for a house without pre-approval is like hunting without a working rifle. You don’t know how big you can go (purchase price), if you need to work on anything (credit, job length, etc.), or a slew of other factors that could prevent you from buying a house.

There are many different lenders who basically do that for you. My recommendation is typically to go with a local lender or a lender that offers a specific program that fits your needs and desires. For instance, if you’re going to use an FHA loan, most lenders can typically do the same interest rate, however, some may be able to offer you no origination fee, saving you thousands of dollars. If you want to purchase a foreclosure, you may need to get an FHA 203K loan, or use Alaska Housing Finance Corporation (AHFC) for their renovation loan.

If you don’t know what type of loan program you should use, consult a knowledgable licensed Real Estate agent to help you make an informed decision. Without knowing what you want to do, there is no clear path.

Four basic premises of pre-qualifcation are:

  1. satisfactory job history or length of employment
  2. verifiable income
  3. suitable DTI (debt-to-income ratio), and
  4. satisfactory credit score.

If you have had a job for the last two years, or have just gotten out of college and into a career position, 580 credit score or higher, you should be on your way to buying a home.

For more information, please contact our local Alaskan Realtor James Cash at 907-360-7448 or e-mail for more information.