So you are getting ready to graduate from college or perhaps you have already graduated, now you are looking to start your life. The question usually is where do you start? Do you move into an apartment, or do you invest in your first home? Of course this can vary depending on where you live. It may be more affordable to rent in some areas, but it really makes sense to purchase your home after college because it will be more of an investment, and it really is a great way to start your life. There are several things that you need to think about before buying your first home. Below are several tips to help you get started. Remember even if you have the cash this does not mean you need to spend all of it on your first home. This does not mean that you should buy your home the day you graduate, but perhaps within your first year after graduating.
Look at your debt
Obviously if you have just graduated from college you may have some debt, like student loans. The first year after you graduate your focus should be on paying off those loans. This may mean moving back home for awhile in order to do this. I think if your parents are willing to let you live at home for a year you should take advantage of this. Then you may have to work two jobs, but it will be worth it to put in the extra work to get rid of that debt. This will make it much easier when you are ready to pay off your debt.
Help with the down payment
Since you are paying off your student loans you may not have the extra cash for the down payment. Once again this is where your family’s help will come in handy again. Most family members would love to help their kids to get started in life. Of course if your family is not in a position to do this you may have to look into local grants. Their may be some local grants that can help you with the down payment, so do your homework, to see what you qualify for.
Choose the type of loan
Next you will want to choose what type of loan would be best for you. Don’t take a high risk loan because your goal is to get one that will be reasonable, and help you with paying it off. If you are able to get a loan a year after college, you would be able to pay it off at least ten years before you reach retirement age. I know of some who have been able to retire early by taking this route. This means taking the time to research the type of loan, and ask other family members and friends who have purchased home for their advice.
Look for a deal
Last but certainly not least, you want to look for a great deal. Don’t just buy the first house that you see, and like. Shop around, and look for one that may be the best deal for your money. This does not mean that you should overlook short sale homes. In some instances these are the best deals.