Home Loans In Fairbanks, Alaska 

Welcome to Capital Home Mortgage Fairbanks. Fairbanks is Alaska’s second-largest city and the coldest area in the Interior region of the state. The city is famous for its midnight sun and breathtaking view of the aurora borealis.

While living in such a chilly yet nature-filled space is not for everyone, the housing market in Fairbanks, AL, has been relatively active. Homeownership is on the rise, especially with the recently awarded $3.1 million HTF allocation to the State of Alaska. With this fund, Fairbanks and other cities in Alaska will become more attractive for low-cost housing.

Are you shopping for houses in Fairbanks? First, you need to know how to finance it. For many people, home loans are the way to go. Mortgages help them buy houses without paying a large sum of cash right away. 

How Do You Qualify For A Mortgage In Fairbanks?

Since mortgages involve ample funding from the lender’s side, it’s part of their due diligence to look at different factors about you as the borrower. Other factors play a role in the approval or rejection of your application. 

Moreover, approval doesn’t automatically mean that you have favorable records. Sometimes, lenders may accept one or two deviations from the usual requirements but compensate for the risk with higher interest rates or increased down payments. When talking to a mortgage lender in Fairbanks, Alabama, consider these factors. 

Income and Employment

Stable employment is a plus point to lenders. They can assess if you can sustain payments for the loan term duration by providing them proof of employment. Your income-generating capacity is considered side-by-side. 

During underwriting, loan underwriters will rationalize your income capacity with the loan amount. Lenders want to know if you have enough income to cover your mortgage payments. More so, they want to know if this stream of income is stable or fluctuating.

Current Debts

Existing debts may or may not hurt your mortgage application, but outstanding debts will make lenders hesitant to extend financing to you. Lenders will look at your debt-to-income ratio to determine if you’re within the healthy DTI range of 36% to 43%.

Asset Reserves

Lenders may require a borrower to have a certain amount of reserves to qualify for a mortgage. These include cash and savings in banks, retirement accounts, real properties owned, and investments. Lenders are more comfortable with a borrower with significant asset reserves because they know that there are enough assets to cover in case of default.

Negative Financial Records

Poor utilization of credit cards, defaults, bankruptcies, and foreclosures make lenders think twice. However, having negative financial records is not a final judgment. Lenders will weigh in every factor but expect not to turn a blind eye to this.

Fairbanks, Alaska Home Loans

A mortgage application is a long process, and its success depends on so many factors. However, we do things differently here at Capital Home Mortgage Fairbanks. 

As a direct mortgage lender, we handle all aspects of the loan process. This allows us to accommodate many home loan requests and provide competitive rates. 

With our flexible processing and underwriting policies, we can provide quicker processing times and on-timer approvals for home loans in Fairbanks. 

Get A Home Loan In Fairbanks

Get the funding you need for your dream home in Fairbanks, Alaska, with Capital Home Mortgage. Contact us at (907) 531-5048 for a no-obligation quote and connect with our experienced loan officers.