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Ask Cora Hey Cora: My mom says that I should wait to buy a house because there just isn’t enough on the market right now for me to get the house I want. Do you agree? Signed, Mama’s Boy. Dear Mama’s Boy, Good question, I am glad you asked. I would NEVER want to tell you “yo mama may be wrong!” but I read this article on the REALTOR.com web site that said Buyer or Wait? How to make your move during a time of low inventory. I’ll give you the highlights: According to Tanya Svoboda, a writer for realtor.com, she says the pandemic has created a work-at-home and school-at-home situation that has made our houses feel smaller, or at least less functional, and I agree. We all have noticed a “squeeze” if you will, in how we use our space. Homeowners looking to upgrade their space are learning that their choices are fewer because there just aren’t many houses on the market. The National Association of REALTORS® (NAR) Existing-Home Sales numbers showed that inventory levels for December 2020 were down 23% from December 2019. This is the lowest inventory levels have been since NAR started tracking data in 1999! That’s happening across the nation – here in little ol’ Alaska, that’s happening right here too. Homes are getting several offers within the first 24 hours, this can be rather discouraging for a new home buyer, and even an experienced home buyer. Deciding whether or not to buy when inventory is low and demand is high can be tricky, but not impossible. Here are some questions to ask yourself according to Tanya and me: • You have a consistent income. You’re Financially Secure. The current low-interest rates are making homeownership more affordable overall. Before you enjoy these low rates, make sure you’re prepared to financially shoulder your down payment, closing costs, home maintenance surprises, as well as your monthly mortgage payments. It’s a big commitment, but worth it. • Your debt-to-income ratio is less than or equal to 43 percent. This is an important number. Take your total monthly payments (car payment, student loans payment, credit card payment, etc) and divide by your monthly income. Example payments $1,800 per month, Income $5,500 per month divide 1,800 by 5,500 = 33% • You’ve saved enough for a solid down payment. Remember, we have talked about this before Cash is King! Or Kash is King or Cash is Cing (well, that doesn’t work) but the more down payment your have in a multi offer situation, the more likely you are to have your offer accepted. • Your credit score is at or above 640. Today, if you have a credit card, you can see a snap-

Brought to you by shot of your credit score. But keep in mind that a mortgage credit score is a teensy bit different. Keep that score high. • Get pre-qualified. Today, with COVID requirements for showing homes, and multi offers, you must be pre-qualified. And it’s easier than ever to do this. You can do it online, over the phone and in person! You can probably pre-qualify from the moon if it was necessary. • Do your research. By research, I mean what type of home are you looking for, new construction, multi family, existing, condo. Each of these are quite different and have different mortgage requirements. So, know what you want, and what you don’t want. • Make sure you are in for the long haul. This may sound like a dumb thing, but I know people that purchased a home and then, 2 months later decided to marry someone from England and move across the pond! It’s very difficult to get your money out of a home when you have owned it for such a short time. Of course, no one can predict the future, but do your best. • Make a clean offer. By clean offer I mean not a lot of caveats and contingencies. Simple is key here. Your Realtor will help you with this – be Mr. (or Miss) Clean when writing your offer. • Work with a Realtor. Your Realtor has experience to write a clean offer for you, they have relationships with other realtors and can get important information to help get your offer accepted. When not to buy: • Too much compromise. You know what this means, if you cannot find a home in the area where you want and need to live. Or maybe the seller is asking you to wait 6 months to move in so a tenant can vacate the property. Perhaps the seller refuses to make appraisal required repairs. This might be too much of a compromise for you. • Moving again soon. If you are applying for a job in another state, it may not be the right time to buy. If you know that you want to get married to little miss wonderful who lives in Denmark, it may not be the right time to buy. • Upcoming career change. Currently your job may be in accounting, but you would like to go into the medical field, now may not be the right time. This career change may require that you move out of state, or require additional schooling that would move your from your new home. Now, give me a call and let’s get you all set and ready!

April 2021

Call Cora Today! Keller Williams Realty Alaska Group Of Wasilla 621 S Knik-Goose Bay Rd Wasilla, AK 99654

www.clcandassoc.com

907.982.5700

GreatLander Real Estate Guide

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April 2021 Mat Su Valley Real Estate Guide  

#realestate #valley #land #listings #home #palmer #wasilla #mls #homeinspection #cabins #builders #titlecompany #homeimprovement #newhome #...

April 2021 Mat Su Valley Real Estate Guide  

#realestate #valley #land #listings #home #palmer #wasilla #mls #homeinspection #cabins #builders #titlecompany #homeimprovement #newhome #...