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How to Buy a Home After College

April 22, 2018
Published by Grayhawk Homes

For some people homeownership — as soon as possible — is the ultimate dream. If you want to be able to purchase one of the homes in Auburn AL straight out of college, then you may well need to start planning in college or earlier. You’ll need your four years in college to build up a downpayment, get your credit at a good number, and figure out your best likelihood for finding a solid job in the area.

First off, determine where you want to live and the type/size of house you want, making sure the area is likely to offer jobs in your field. Most likely, you’ll need to do some internet research to understand what may be in your price range and adjust your search accordingly. Remember, though, that most people buying a home straight out of college aren’t buying a home to live in forever. Unless you’re planning on starting a large family right away, you can probably start with a smaller, more affordable home. Going through the home buying experience will prepare you in the future for buying a more permanent property.

Don’t forget to take into consideration the cost of living and median wage in your chosen area. That will also play an important role in how much home you may be able to afford. In some cities, you may be better off renting at first and then purchasing when you can save more or move to a less expensive area.

Of course, you also have to qualify for a mortgage and that means having both a downpayment on a home and having a solid credit score. Being in college or even high school, you will need to start building credit, but also managing it so that it doesn’t act against you. You’ll likely have some college debt, so you should make sure you don’t have credit card debt further lowering your credit score.

The reality is that you will need to live frugally in college. As tempting as it may be, don’t order pizzas with your credit card, don’t do your studying in pricey coffee shops, and skip some of those happy hours and club hopping. It’s important to save as much money as possible and that means not taking part in some of the typical college parties and gatherings. You need to determine what is more important to you, because your friends are going to want you to go out with them. You may also need to take six months to a year after college to try to pay down your college loan debt or any credit card debt so that you have a lower debt to income ratio. Once again, careful, frugal living may be challenging, but it will get you to your goal faster.

You also need to be saving money and working at least part time while going to college, because a 20% downpayment on your first home leads to much less stress in the long run. Don’t forget about the costs of purchasing a home, furnishing it, and maintaining it. All of that must be factored into determining just how much home you can comfortably afford.

Purchasing one of the homes in Auburn AL straight out of college is a possibility, but it takes drive and determination. You need to live well below your means, stay focused on your goal, stay on top of your credit and savings, and be realistic about the type of home you can afford. Still, it can be done and this early experience will help prepare you to eventually afford a larger home of your dreams.

Grayhawk Homes builds in Alabama, South Carolina, Georgia, and even Iowa, offering a variety of quality homes in a range of prices and sizes. Be sure to check out what they offer. You may just find yourself in a brand new home of your own.

Categorised in: Auburn AL Info, Market news, New Home Tips

This post was written by Grayhawk Homes