It’s that time of the year again where so many college students are now finished with their years of study and are launching into the next stage of their lives. Their careers and adult life is underway to some degree, and in that many are laying out their financial plans as well, possibly motivated by the looming student loan repayment period approaching. As they plan the thoughts of homeownership start creeping in. More and more young college grads are starting to prepare themselves financially—purchasing their own home is often one of their long-term goals.
Some might consider preparing to purchase their first home a snap if they have decent credit and a small amount of savings to utilize, but setting up your finances for homeownership can often be a challenge. Here are seven ways to start achieving those goals right now.
1. Begin Working On That Credit Rating
If you are one of those students who stayed away from credit card use while at school good for you. More often than not students have very limited cash flow so it’s easy to get into a late repayment of your short term credit card debts. However, if you are still without a credit card it may be time to get your first. Most likely you have received numerous credit card offers… be selective and only apply for one at a time. It’s best to get use to having credit before you have multiple cards that may be more challenging to manage. How long your credits have been active is a part of your credit rating so getting started is important, but not paying those cards is of course is worse than not having them.
If you’ve managed your credit cards poorly, perhaps obtaining a secured credit card it a good restart for you. You’ll have a limited amount you can use based on what you’ve added into the account. It’s a good way to build credit card payment habits now that you’re moving into adulthood.
Having said that… If you have student loans, a credit card may not be necessary. They also contribute to your score, so focus on paying them down regularly (and on time) to improve your rating.
2. Your Career Choice Will Affect Home Ownership
It’s been said that when considering your career do what you truly love to do. If you do, you will never “work” a day in your life. That’s so very true, but make sure to keep finances in mind when you’re searching. Not all choices will lead you to home ownership.
Selecting where you will begin your career is a huge decision. You may work your way up the ladder only to find that the ladder is on the wrong wall so to speak! Are there career possibilities in the location or locations where you’d like to eventually purchase a home? Doing what you really love is imperative—but first, make sure that the career you have chosen coincides with the lifestyle you dream of.
3. Get busy paying off your debt… now!
If you’re like most young Americans these days, you’ll be coming out of your college years with a load of debt. It’s easy to blow it off, but being able to deal with a mortgage and your student debt payments at the same is not all that simple.
Be aggressive in reducing your debt immediately. Creating an actual plan to do so is wise.
If you’ve graduated with a decent amount of credit card debt, make that the priority to pay off. Most student credit cards are very high interest and can derail the beginnings of your financial future.
4. Decide what kind of home you want
Once again, make sure your financial future matches up with where you’re choosing to live in this beginning phase of your adult years.
Something to consider is don’t try to be too aggressive too quickly with your financial choices when it comes to new debt or responsibilities. Consider all your expenses when deciding home purchases. It’s exciting to consider buying a home, specifically in the Central Florida area. There are so many beautiful communities to consider. Whether you are looking for Ocoee real estate, Windermere homes, Lake Mary homes or one of the other beautiful Central Florida communities, consider all the expenses that come with the areas you’re considering.
You don’t have to do that alone by the way, I am absolutely thrilled to help young people prepare to become home owners. It’s one of the things I truly love to do!
5. Start saving now!
This one’s self explanatory… save as much as you can. It might be the time to cut back on the latte’s and the Friday night restaurant visits until you’ve got a handle on your budget. Again, it’s not simple to do, but it’s easy to understand. The more cash you’ve saved the better. Being able to come up with a good down payment is very helpful when going over all the finances in your home purchase.
6. Be realistic in your home buying choices
Ok, so let’s say that you are someone who is about to experience a MAJOR increase in your finances. You’ve worked hard and chosen a career that will bring more money into your life than you’ve ever experienced. I still recommend taking a deep breath and assessing how to move forward. You may be able to locate your dream home in Windermere, or you may fall in love with a home in Lake Nona Florida, I recommend sitting with me and going over all the financial details early. It’s a big new thing – even if you are looking at a big new salary.
Finally, if you are being wise and considering the purchase of your first home, I applaud you. This will most likely not be your only home you buy, so be realistic, do your homework, sit with a realtor that enjoys offering first time home like me and work out your financial plan immediately.
As I said, my favorite thing is to help Central Florida first time home buyers. So if that’s you… give me a call at 407.948.8295 or just fill our the info below, I’d love to sit with you and buy you a cup of coffee! Did I forget to tell you how much I love coffee?