Just graduated college can i buy a home

This can lead many new home buyers to sell their homes sooner than they would like and feel defeated about the entire process. With proper planning and strategizing, this can easily be avoided. For those recent graduates looking to take that next step and buy a new home, here are some helpful tips for beginning the home buying process.

As a recent graduate, adding a mortgage loan on top of your pre-existing student loans can come with some risks. Therefore, it is important to get a full picture of what you can afford when it comes to housing. You can now get a better picture of your housing budget.

Ideally, your housing costs should be about one-third of your total monthly expenses, including mortgage payments, property taxes, and utilities. Closing costs and other fees are also important to take into account as you go through this process.

Make sure that you are adequately prepared for them for the utmost financial success. If you find that you are able to afford a home , given your current income and expenses, you will be set to move forward and start planning and preparing for the home buying process, whether that be staying with your parents or renting a place while you save up and plan accordingly. Is there evidence of water damage in the basement? These are warning signs that you may inherit some significant repairs if you buy the home.

If you are wondering if a home inspection is worth the cost , the answer is New septic tanks can cost you more than your downpayment! When you've invested in a new home, you don't want to incur additional big expenses right away. Don't let cute curb appeal distract you from significant structural issues. There are strategies you can use to negotiate repairs when purchasing a home. You'll want to enlist the help of a real estate agent during the home-buying process.

They'll have the experience and understanding of the neighborhood to land you the best home. Here's how to choose the right Real Estate Agent. Buying a house involves a lot of paperwork and foreign terminology. Hiring a real estate agent gives you a knowledgeable professional who knows how to read contracts. They can gauge market conditions, too. A real estate agent also will be well-versed in seller's disclosures, titles, and mortgage statements.

Best of all, your real estate agent can draft a contract that protects your interests. Your agent will try to buy you the most time for housing inspections. And they'll know how to read inspections, contingencies, and other critical documents. A real estate agent knows the housing landscape in your area.

Because of this, they'll know about comparable homes and pricing trends. They'll also know the right negotiation tactics to try with the seller's agent. You may even be able to learn about houses before anyone else. If your real estate agent knows your criteria and stays connected with colleagues, they'll be on the lookout for you. The biggest reason to hire a real estate agent is that it saves you time. When you're trying to adjust to life out of college , you don't need one more big task on your to-do list.

Communicate with your agent so they know your housing preferences. Show them your loan pre-approval and they'll know the range of houses you can afford. Then let them do the legwork for you! Are you wondering if it is possible to buy a house while paying off your student loan debt?

Yes, it is possible. But you'll need to work on increasing your income while reducing your debt no matter where you are in life. For many, the affordability of a city can play a large part in their ability to afford a home. This is one of the reasons people move to a place like Raleigh , or North Carolina in general.

Other great options of places to move to include states like South Carolina , Georgia , Florida , Virginia , and Tennessee. People are relocating to the southeast because there are high-paying jobs with the affordability of real estate. Lenders will use your debt-to-income DTI ratio to determine how much house you can afford. Debts refer to car loans, student loans, or credit card debt payments that you need to make.

The more debt you have, the higher your ratio will be. Fortunately, there are ways to improve your ratio. For starters, you can add another part-time job or side hustle to increase your income. Drive for a ride-share or deliver groceries. Do some tutoring or dog walking. Adding even a few hundred dollars each month can help lower your DTI. And this can make you more attractive as a loan candidate. Another way to improve your DTI is to change your student loan repayment program.

For instance, enrolling in an income-driven repayment plan will help lower your monthly payments. If you work for a non-profit or government agency, you may be able to pursue student loan forgiveness. Through this specific type of income-driven plan, you can eliminate your loans after ten years of work in this industry,.

As a more aggressive step, pay down your loans before buying a home. While you might have to hold off on building equity, you'll wipe out a considerable debt.

During the period of due diligence , you'll assess the physical state of the property. You'll also learn more about the value of the home.

Ultimately, what you learn can help shape negotiations — and whether you stick with the property. Due diligence is a time frame that stretches from when you enter into a contract to when you close on the house. Your contract should tell you how long the period of due diligence lasts. It can range from a week to a month or longer. The seller may offer a list of disclosures. Disclosures are the repairs or other issues that the house has faced over the years.

Knowing the disclosures can inform what you choose to investigate during due diligence. Home inspections are a normal part of due diligence. A home inspector will look at the heating, cooling, plumbing, electrical system, and appliances. They will also check out the roof and investigate the state of the kitchen appliances. Then the home inspector will summarize their findings in a report.

If the home inspector indicates a number of minor repairs, you may be able to ask the seller to cover these. But if the repairs are significant and costly, you might want to walk away from the house. It's also wise to inspect the home for other issues, like radon gas or lead-based paint.

These are potentially deadly problems that you'll want to fix right away. The last thing you want is bugs in your house that are destroying the foundation! And your lending agency will have someone appraise the home. The appraiser will look at the lot size , neighborhood, and square footage. A lower appraisal may force the seller to lower the price of the home. Buying a home requires more than making a down payment and monthly mortgage payments.

It's critical to set aside money to cover the additional costs. When you're at the end of the home buying process, you'll encounter closing costs. Closing costs include homeowners insurance, home appraisal fees, and loan origination fees.

You also might see attorney fees and escrow charges. And expect private mortgage insurance fees if you make a lower down payment. What if the HVAC system shuts down or the basement floods? Dealing with repairs is a normal part of homeownership — and you need to be prepared. Have money in savings earmarked for these issues. You may only spend a few hundred dollars per year on a new construction home.

But for older homes, you may need to address faulty roofs, cracked foundations, or drafty windows. You'll want to learn about homeowners insurance options. Look at a number of different plans. And check to see what's covered related to liability, theft, or weather-related issues.

Does the home have any homeowners association HOA fees or requirements? Make sure you're up to speed on what's expected of you when you move into the neighborhood. All you have to do is make sure to itemize property-related expenses when filling in your tax return.

Even if you decide not to stay in your home for long periods of time, you can still make money off it to help pay for the mortgage. You can also rent to roommates that live with you, which could offset some or all of the mortgage and other expenses. Owning a house is a good idea if you want to have more autonomy and control when it comes to home improvement projects. In fact, the value of your home will increase over the years provided your home improvement projects are done well and add more quality and comfort to its occupants.

Buying a home will eventually free you from making mortgage payments. Take Care of Your Debt Buying a house while saddled with debt is a recipe for disaster. Get Pre-Approved One of the biggest factors of buying a home lies in what amount the bank gives you with regard to your pre-approval amount. Robert Farrington. Connect with. I allow to create an account.

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Quite a few of these people are college graduates, and the challenges of the job market and student loans have kept them from leaving the nest. It may be more difficult for college graduates to buy a home now than in generations past, but homeownership remains within reach of most Americans—young and old. Mutual funds are something to worry about later. But you can invest now—and you should. Buying a home is one of the simplest and most practical investments college graduates can make.

Many millennials came of age during the Great Recession, and many college graduates watched family members struggle as home values plummeted in certain markets.