Top 5 Tips To Buy A House Or Condo Immediately After College
If you are a passenger who wants to buy a house or condo immediately after college, you need to start saving immediately and stay out. Here are five steps you need to follow.
If you want to buy a house or a condo right after college, you have to think of the long game. That means you need to start planning early.
For example, start earning as soon as you start
It may even make sense to start planning while you are in high school. The decisions you make during your college year can have a long-term effect on your financial future (e.g., student loans or choosing your principal).
Here are the critical steps you can take if you want to buy a home after graduation.
1. Decide where (and what) you want to buy
This is a first step that many may not agree on but I strongly feel that knowing it exactly what you want will allow you to set goals.
According to Dr. Neil Farber in Psychology Today, the goal is to “help us concentrate our energy, create plans, live purposeful lives, and give us a sense of accomplishment.” He also outlines the benefits of value-based goals. Create meaningful goals based on what you value.
Before reading this article, you can take a look at the Condos. This could be the broker to buy your dream home.
Find the right neighborhood
Leaving the psychological staff in the past, I suggest doing some research on the areas you want to live in. Nich.com is a great website to help you live in your immediate area.
The niche will show you ratings for things like nightlife, diversity, crime and protection, and housing prices. You will see houses for sale as well as what kind of housing is demolished in that area (medium house quality, area feeling, etc.)
Find out what kind of home you want to buy
Once you decide where you want to live, you should buy what you want. For example, most neighborhoods will have single-family homes and condos, but there are townhomes, duplexes, and other types of homes that you can consider.
If you are looking for a traditional themed single-family home, this fun guide from Realtor mag shows you over 30 different types of home architecture so you can see what suits your style. You may not be able to afford exactly what you want from college but it will keep you focused on something for the future.
Start small
You may or may not remember the housing crisis of 2008 (more on that below) but banks were lending unreasonable amounts to people who could not afford to repay it. It made people think that they could live in a much more expensive or more expensive home than they actually could.
So, my advice is to start small and buy a cheap starter home. My first home was in a town where there were horrible schools and only two bedrooms.
We don’t have kids yet, and we only need one bedroom (the other was served as an office). The house was within fifteen minutes of both of our work. And it has served us well year after year.
Many people, including my close friends, think that they need to buy their ‘home forever’. If you’re just coming out of college, I can’t think of any logical reason for a big house of yours with four bedrooms and two bathrooms.
So, starting small with both your home and your budget will allow you to make better financial decisions down
2. Take it where you want to buy Align your college major and career prospects
Now that you have an idea of where you want to live, you need to determine a major that can create the right job prospects for that type of area. If you have already chosen a major, consider getting an internship in a job that is compatible with where you live.
If you want to be a marine biologist, don’t live in an area where you don’t have access to water. I’m sure it’s possible to make a career in marine biology, but it feels like you need to be very close to the body of water … isn’t it?
Living expenses and moderate wages
Other expenses to consider are living expenses and salaries. If you want to stay in New York City, I would not recommend choosing a major that would get you a low-paying job. If you own a place where you want, you need to balance finding a job that you enjoy with a job that does a good job.
For some directions, Gippia.com ranks almost every state and for a variety of different jobs. You can look for the best place for the highest paying job or a certain type of profession in the state you want to live in. You can even plug in your major to get a career path.
3. Find out where you stand with achievement
Next, you need to take action. Whether it’s creating credit for the first time or correcting some past credit-related mistakes, you can buy a home and your credit score will be directly affected if you can afford it.
To give an example of how your credit score can be affected, let’s take a look at some current mortgage rates from Mafico. As of this writing, here is the national average of rates based on credit score:
Contact your credit report
In the absence of medical bills, missed payments, and a lack of credit history (among other reasons), it’s easy to see your credit score tank while you’re in college. It’s easy to forget because you have so much more to do.
Here is my advice:
If you have credit, make sure you are on top of it. Go to Credit Action and get a free copy of your credit report so you can see if there are any abusive signs or errors. If so, you can use this guide to help you repair your credit faster.
If you are already at a reasonable level and your credit score is 760 or higher, you can follow these tips to maintain your credit score.
The goal is to communicate with your credit. Know where you stand and take immediate steps to improve your score.
4. Get rid of your debt
This can be the most difficult for most college students. If you want to set yourself up for future financial success, get rid of your debt. You don’t want to go out of college with a great burden of debt and a new mortgage gift, do you?
Now I am a realist and I know most of you probably have or will have a student loan. In fact, research by the Pew Research Center shows that undergraduates were owed 25 25,000 in student loans, while postgraduates were owed 45,000 in student loans.
Credit card debt
I’m not asking you to pay 25 25,000 after your college graduates (although that would be great). I suggest that you get rid of any unnecessary debt like credit card debt. Get credit card debt will not only affect your credit score, but it will also affect your ability to get a mortgage. When people apply for a loan, they have a high debt-to-income ratio – which can disqualify you, significantly limit the amount of your loan, or simply give you a higher rate.
I know it’s easier said than done. I was in college once, and I remember just being able to afford a 7-pineapple pizza (don’t judge) after a long night was over, I was building and building my credit card balances when I was in college. So, when I got my first job, the first six months I threw in as much as possible to pay off my debt. There was no way I was ready to pay the mortgage (not even to pay the rent – I stayed at home).
Live well below your way
It’s hard. My college-suke would be my advice to your way of living down. Only buy what you need and what you have in cash. It won’t be a favorite choice among your college friends who want to go out for happy times, but it’s a smart financial choice.
If you want to get a chance to own a home after college, you need to intervene now, pay off your debt and start living your way down now.
5. Save, save, save
If you want to buy a home after college, you should start saving as much as possible now.
There are opinions in favor of a 20 percent reduction in a house but I strongly feel that if you are buying a house (especially right after college), it is a necessity. I have personally paid for both small and large at home and I can say that it is less stressful to make a huge size payment.
The real cost of buying a home
You also need to keep in mind that buying a home can cost a lot more than just a down payment. You need to factor in factors such as closing costs, prepaid costs, utility adjustment and payer-required cash reserves. Also, you will want some extra cash for yourself. With a starter home, you must fix a few things and you will also want to keep some savings for emergencies.
If all these expenses are turning your head, it is very good. This means you are starting to see money as a limited asset.
Buying a home should be one of the momentous events of your life. The total that you will spend on the house and whether it is affordable for you. So how much can you afford? I would like to avoid the suggestion of a certain percentage of what your monthly payment should be compared to your income. There are many variables – such as where you live. For example, you can pay more for a home within walking distance of your home, but you don’t have to pay for a car or gas.
How and where to save
Now that you have an idea of what it costs you to buy a house or condo, let’s discuss how you should save this money. I am already leaving this to my colleagues because they have already done a great job in covering these issues. There are two things to think about – 1) the method of how you save and 2) where you should keep this money.
Summary
Buying a home or condo after college is going to be tough – but it’s more than possible. All you need to do is set a clear goal and get started early. Unlike most of your college students you have to survive under your medium, keep in touch with your credit, and save the money you earn.
