It is not considered common for a new graduate to buy a family home right out of college. For the most part, college students already have too much debt to take on an expensive mortgage right away.
But for those former students who can afford to buy a home they plan to stay in until their retirement years, it can serve as significant investment and a benefit to their bottom line in the long run.
If you are one of those recent graduates, what you should know is that if you end up owning your home for decades and are able to pay the monthly mortgage religiously, you can finally apply for a reverse home loan once you turn 62.
This can fetch hundreds of thousands of dollars, if not millions in some cases. You can get the income in one big lump sum or you can get it in equal monthly payouts.
You might want to check out some mortgage reviews (https://reversemortgagereviews.org/) now just to get an idea of how the process works and which loans will work best for you when the time comes.
But is buying a home right out of college really a good idea in the first place?
Most people who buy homes are waiting until their 30s or even 40s, according to a new report. Why; Because they have to wait for a moment when they consider their personal finances to be in decent shape. This can take years and years.
Also, if you are going to buy a new home, you need to have adequate funds for a down payment. But if you were on a scholarship or came from a family that could pay for your education and, on top of that, you worked a job while going to school, then you’ve likely saved enough money to put a down payment on a house. If this is the case, you won’t be “throwing your money away on rent”.
That’s what he said, it is House purchase right after graduation a good idea? Or is it a better idea to wait a bit?
The benefits of buying a home right after college
Experts say there are “universal benefits” to buying a home. These include stability, tax breaks, along with owning an asset that gains in value over the years. It only makes sense that the sooner you buy property, the sooner you can reap the financial rewards, which means buying a home right after graduation can be a good idea.
From a lifestyle perspective, there are advantages to settling down and “planting roots” in an area of the country where you feel most at home. When renting, there will always be the possibility that the lease will not be renewed. Therefore, you will have to find a place to move which could end up in a neighborhood or city that is not your ideal location.
The downside to buying a home right out of college
Financial experts agree that there are specific considerations to consider if you’re considering buying a home right after graduation. The first of these is that you will be brand new to the workforce. You never know what path your career might take.
It’s entirely possible that you’ll get a job straight out of school and find that you can’t stand your chosen field. But what do you do if you have a home and still find a job you want to take that’s 500 or 1,000 miles away? You may have to turn down a lucrative offer in an area you love just because you’re stuck in a home that hasn’t yet started to appreciate in value.
One more thing to consider is that being new to the workforce means you don’t have an established credit history. Your credit score may not be that high. This means that the lower your credit score, the higher your mortgage rate will be. In this case, it could be beneficial to “wait until your credit history is more established” before applying for a home loan.
Finally, being a homeowner comes with a lot of responsibility. While your young friends may be traveling to Europe or out on the town most nights, you have bills that need paying and home maintenance to take care of.
Being a homeowner means growing up much sooner rather than later.
What To Consider When Buying A Home Right After College Graduation Source link What To Consider When Buying A Home Right After College Graduation