By now, you’ve probably heard that the real estate market is ideal for purchasing a home in Alaska. Not only are mortgage rates at all-time lows, but home prices are rapidly rising and properties are selling quickly! However, if you’re a renter in Fairbanks or the surrounding areas, the down payment aspect of buying a home may be holding you back.
Madden Real Estate has included five tips below to help you save for a down payment on a new home in Fairbanks, Fort Wainwright, North Pole, Salcha and the neighboring communities. You might even find it’s much easier than you thought!
Research your spending habits
The first thing to do when you’re assessing how to best save for a down payment is to dive into your spending habits. Are you going to dinner frequently? Are you in the habit of making big purchases, technology for instance? How often do you go shopping for clothing? Identifying where you can cut extraneous spending is the key to beginning a healthy down payment savings for your future home.
Cancel your gym membership
The average gym membership can cost Fairbanks AK residents $50 or more per month— that’s a total of $600 per year! And with homebuyers now able to buy properties with as little as 3 to 5 percent down, that could make a substantial impact on your saving account!
Cancel your cable package
There are other ways to catch up on your favorite TV shows and movies, so why not consider canceling your cable package as you prepare to buy a home in Alaska? The average cable bill costs as much as $100 and over the course of one year can add up to $1,200! Depending on your budget, cutting this expense alone will put you well on your way to having enough of a down payment for your new home!
Downsize to a smaller apartment
As a renter preparing to buy a home, you know that your current apartment is only temporary. Consider down-sizing to a smaller apartment and put the thousands of dollars in savings per year into your down payment fund. Keep in mind that moving into a smaller place can also lower your monthly utility bills.
Edit down your belongings
Moving is one of the best times to clean out your closets, garage, storage space, you name it! Take the time before you become a homeowner to pare down your belongings— have a yard sale, sell older or unused items to friends. Not only will you have less to move when the time comes, but your down payment savings will thank you!
If you’re planning to buy a home in the Fairbanks, Fort Wainwright, Eielson AFB, North Pole, Salcha, Nenana, or Delta Junction areas, give Madden Real Estate a call! We can help ease your fears of making the transition from renter to homeowner and walk you through every step in the process!
We look forward to hearing from you!