If you have just graduated from college or university, congratulations! This is an exciting time in your life, and while getting a job might be your number one priority at the moment, if buying your first house is one of your long-term goals, you should start preparing yourself financially as early as now. Industry experts say that the earlier you start saving and preparing, the easier buying a house will be. Here are a few things you can do now to get off to a good start on your home buying journey:
1. Get your credit score in order. One of the easiest ways for fresh grads to start building their credit history is to get their first credit card. This is because credit bureaus will take into consideration the average age of your accounts when assessing your credit score. Of course, you’ll want to have an excellent credit score when you finally decide to buy a house.
However, getting a credit card may not be the best option for you if you are a notorious over spender. A better option may be to get a secured credit card that prevents you from spending more than what you have available, or simply focusing on paying down your student loans consistently, regularly and on time. The latter option will also contribute positively to your credit score rating.
2. Pay off your debt. If you are like the vast majority of recent grads in America, you’re probably leaving school with a considerable amount of debt to your name. You may be tempted to ignore it, but trust us when we say that trying to balance a mortgage payment AND your student loan payments would be an enormous burden, even on a generous salary. Save yourself the grief and make paying off your debt your number one financial priority. You may need to cut back on your guilty pleasures like your daily cup of coffee at Starbucks, but the long-term results will be worth it.
3. Start saving up for a down payment and closing costs. It may surprise you to learn that a home’s asking price is not the only amount you’ll have to spend when buying a home. Closing costs such as paying various fees and paying for a home inspection can up to more than 5% of a home’s price. Make sure you have enough cash to cover these costs and more, so that once you’ve bought your home, you’ll still have reserves to fall back on.
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!
