Blog posted On November 02, 2022
Purchasing a home is a dream of many, especially those who have graduated college and begun life in the ‘real world.’ Purchasing your first home early and avoiding the rent trap can give you a jump start on building valuable home equity. If you’re just starting out in the ‘real world,’ welcome! Here are a few tips for those who don’t want to waste money on rent.
Determine how much you can afford
As a recent college graduate just starting out in your career, it’s essential to determine how much you can afford. Reach out to a loan officer to go over your financial profile to give you an idea of how much you can afford. They will also be able to let you know ways to improve your credit score if needed.
Save for a down payment
A great way to begin saving for a home is to automatically have a percentage of your paycheck go into a separate savings account. This will make it easier to avoid spending this money because you do not get a debit card with a savings account.
Be honest with yourself. Do a deep dive into your monthly expenses and determine your ideal monthly payment aside from what you are preapproved for. It is recommended that your mortgage should not be more than 30% of your monthly income. Start small, build up equity, and use that equity to get something bigger down the road.
Loan options for first-time home buyers
Below are low down payment options and specialty mortgage products that benefit first-time home buyers.
It’s never too early to start building wealth. To learn more about our loan programs that can help meet your needs, contact us.
Sources: Moneygeek, Moneyunder30