Posted on: 02nd Oct, 2008 02:56 pm
I was wondering if anyone there could give me a little advice. I am a college student, getting ready to graduate this year. I am working now, and will secure a higher paying position once i graduate. I plan to move out of state from where I am located now. I was wondering if you believe that I should rent first or buy after I graduate? I'm just not sure if i should try to buy the house that I can afford on my income now, and have everything else as extra, or if I should secure a new job and get more of a house with that salary. If I should secure a job first, how long should I rent before I can show a work stability? Thanks so much!
If you aren't sure, then see if you can enter into a month to month lease with a renter and that way you can test the water.
What my husband and I did, we set aside the equivalent of a mortgage payment aside to see how we would live without the money.
Buying a home is a great investment, but should not be taken lightly.
As far as qualifying, many grads get homes after school. You should be in the profession in which you studied in, or in the same line of work that you are in now and garanteed a set amount of hours. The lender would take that set garanteed amount of hours and calculate the income from that.
think about where you want to be in the next few years. If you are in a serious relationship that might go to the next level soon, it might be a good idea to wait for the bigger home.
You just need to be sure you are ready.
What my husband and I did, we set aside the equivalent of a mortgage payment aside to see how we would live without the money.
Buying a home is a great investment, but should not be taken lightly.
As far as qualifying, many grads get homes after school. You should be in the profession in which you studied in, or in the same line of work that you are in now and garanteed a set amount of hours. The lender would take that set garanteed amount of hours and calculate the income from that.
think about where you want to be in the next few years. If you are in a serious relationship that might go to the next level soon, it might be a good idea to wait for the bigger home.
You just need to be sure you are ready.
I won't comment on whether or not you should rent versus buy since that is a personal choice.. however I can tell you that lenders don't require 2 years employement if you just graduated. As long as your job is in the field you got your degree in they will calculate your projected income to qualify you.
Chris is right, no one should require a 2 year history for recent grads.
Hi Stormdanzr23,
Congragulations first and foremost!
Just to add my 2 cents... Think back to your freshman year. Kudos to you if you went in with a plan and stuck with it, but if you are anything like me, you were probably undeclared for a little while or changed your major at least once. When moving to a new area that you know very little about, I would probably rent for a little while. If nothing else, use that time to get to know the local areas. I have seen several people that fall into the trap of purchasing a home right away only to find out that the next town over is a much more desirable area and well worth a slightly longer drive to work. Remember that this could be one of the most important investment decisions in your life so don't rush into it, be patient enough to find what you really want.
Congragulations first and foremost!
Just to add my 2 cents... Think back to your freshman year. Kudos to you if you went in with a plan and stuck with it, but if you are anything like me, you were probably undeclared for a little while or changed your major at least once. When moving to a new area that you know very little about, I would probably rent for a little while. If nothing else, use that time to get to know the local areas. I have seen several people that fall into the trap of purchasing a home right away only to find out that the next town over is a much more desirable area and well worth a slightly longer drive to work. Remember that this could be one of the most important investment decisions in your life so don't rush into it, be patient enough to find what you really want.
Hi Stormdanzr!
Welcome to the forums!
Buying a house is a big investment so one has to be very cautious in doing so. For fresh grads, the lenders do not ask for 2 year employment history. They will give you loan if they find that you are working in the same field in which you have graduated and that your income is quite good and will increase in future.
But in my opinion, you should first take some time to know the new area where you will be going. Check the different types of homes available in the area and see which one you feel like buying. Take some time to judge all this and then buy the house. Wish you all the best for your future.
Feel free to ask if you have further queries.
Sussane
Welcome to the forums!
Buying a house is a big investment so one has to be very cautious in doing so. For fresh grads, the lenders do not ask for 2 year employment history. They will give you loan if they find that you are working in the same field in which you have graduated and that your income is quite good and will increase in future.
But in my opinion, you should first take some time to know the new area where you will be going. Check the different types of homes available in the area and see which one you feel like buying. Take some time to judge all this and then buy the house. Wish you all the best for your future.
Feel free to ask if you have further queries.
Sussane
It really comes down to what type of home you want to be in for a while. If you purchase a home on your current income, you won't qualify for as much as when you graduate and have higher income. If you think you will be happy with something on your current income, having more income later will just be a plus and you can save that money,etc. The market is a buyers market so purchasing sooner than later could be a wise choice. However, you just need to be ready for the commitment of homeownership.