Starting Early: Buying Your First Home Right Out of College
Many 1st time home buyers think you need to wait 2 years after graduating to buy a property. It’s not easy but college graduates may be able to purchase their 1st home right out of college.
I recently ran across a member of my old business club at UH Manoa. She is graduating this semester and has lined up a job after she graduates. Her parents are willing to help her out with down payment and she asked if she can buy and when to start looking.
The two largest hurdles of buying a home right out of college would be down payment and debt. As long as you can meet the requirements below you might be able to get pre-qualified to buy now.
- Your job must be a stable salaried job related to your college major. If you are going into an unrelated work field or your pay is based on commissions or bonuses you will need to wait to buy. As long as your job relates to your college degree, lenders are willing to use that income.
- Do you have down payment? There may be programs available to you which allow 0%-5% down payment. The down payment may be gifted and if your family is willing to help out this is the easiest and most effective way to do so.
- Do you have large debts? Things such as car payments, student loan payments, and credit card debt will dramatically affect your qualification. Student loan debt is usually the #1 reason college graduates wait years before buying their first property.
In 2015 Zillow reported the average age of a first time home buyer nationwide was 33 years old. The average age of first time home buyers has been rising and student loan debt is a large cause of this. The sooner you can get rid of debt and purchase real estate, the sooner you can start building wealth through equity in your home.
If you want to get educated on the real estate process and get in touch with a local mortgage loan officer contact me today and get ahead of all the other college graduates.
