So you’ve graduated from college and are eager to move out of your parents’ house, basement, or your dingy dorm room. You’ve decided you want to own a house as soon as possible. For most people who aren’t celebrities or millionaires, owning a house means getting a mortgage, and getting approved for one could be your toughest challenge yet. Here are a few tips to help you get started on your journey to becoming a home owner:
1. Get a job. Unless you have a generous trust account or other passive income, you will need to be employed in order to get a mortgage. When you apply for a mortgage, your income and job stability will be taken into consideration. Many lenders will require at least two years of work history before they will consider your employment income, but will also make allowances under special circumstances, such as you receiving increased responsibility and income at work, you receiving a special degree, or your position a high-demand one in a stable industry.
2. Start building your credit history. A solid credit history and a good credit score will take time to build, and being a recent graduate may mean that you haven’t been around long enough to develop one. But all hope is not lost, as your lender may order a non-traditional credit report that uses your payment history from utility companies, landlords and other accounts to demonstrate that you have been responsibly managing your finances. Even a series of regular deposits into a savings account may be used to determine financial conscientiousness, so be sure to save regularly and pay all your bills on time and in full.
3. Pay off your student loans. This is one of the biggest challenges for fresh graduates, as student loans and their high interest rates can be very financially crippling, even on a generous salary. You may be able to ease your burden by refinancing your student loan. In some cases, you may be able to extend your repayment to as long as 30 years, or select a graduated payment plan, where you make smaller payments early on, then gradually increase as your income rises.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
