Helping Your Kids Prepare for Homeownership: A Guide for Alaskan Parents

As a parent, you've spent years teaching your child how to navigate life—everything from tying their shoes to balancing a checkbook. But now that they're stepping into adulthood, there’s one major milestone that might be on the horizon: buying their first home.

If you're like most parents, you’ve probably already shared your wisdom about financial responsibility, credit scores, and saving for a down payment. But do you find that when you tell your child something, it sometimes seems to go in one ear and out the other—yet when someone else says the same thing, they soak it up like a sponge?

You're not alone. And that’s exactly why I’d love to help!

The Foundation of Homeownership: Building Strong Credit

Before your child can even think about purchasing a home, they need a strong credit history. A good credit score not only determines whether they can qualify for a mortgage but also impacts their interest rate and loan terms. Here’s how they can get started:

1. Open a Credit Card (and Use It Wisely!)

Encourage your child to get a starter credit card, like a student or secured credit card, and use it responsibly. They should aim to:
✅ Keep balances low (below 30% of the limit)
✅ Pay the full balance each month to avoid interest
✅ Make payments on time, every time

A missed or late payment can tank their score quickly, so setting up autopay is a great strategy.

2. Become an Authorized User on Your Card

If they’re not quite ready for their own credit card, you can add them as an authorized user on one of your existing accounts. This allows them to "inherit" some of your positive credit history—just make sure the card is in good standing!

3. Build Credit Through Other Payments

Did you know that paying rent, utilities, or even phone bills on time can help establish credit? Some services, like Experian Boost, allow young adults to add these payments to their credit report to help build a score faster.

Saving for That First Home

Once their credit is on track, the next step is saving for a down payment and understanding homeownership costs. Here’s how they can get a jump start:

💰 Set Up a Dedicated Savings Account – Encourage them to open an account specifically for their future home purchase. Even small contributions each month add up over time!

🏡 Learn About First-Time Homebuyer Programs – Alaska has several programs that help first-time buyers with down payments and closing costs, such as AHFC’s First-Time Homebuyer Program or VA loans for eligible military families.

📈 Practice “Paying a Mortgage” Before They Have One – If they’re currently renting, suggest that they save the difference between their rent and a future estimated mortgage payment. This will help them get used to homeownership costs while padding their savings.

Need a Little Extra Guidance? We’ve Got You Covered!

I know that helping your child navigate financial literacy and homeownership can feel like a challenge—especially when they don’t always listen to mom or dad! That’s where I come in.

We frequently host financial literacy and first-time homebuyer seminars through Amplify! and would love to have your child (and you!) join us. These classes are a great way for young adults to learn from experts in a relaxed, engaging setting—and maybe even finally take in the advice you’ve been giving all along.

If you’re interested, give me a call at 907-727-8445 or shoot me an email at lindsay@akpropertysearch.com for more information.

Let’s help your kids build a strong financial future and get them on the path to homeownership! 🚀🏡