You just graduated and now it's time to enter into the real world. The days of Jell-O shots and all night study sessions will soon be replaced with 60-hour weeks as you try to climb the ladder. If you want to one day own your dream house, you need to start preparing now. Here are some of the things you should do to get ready.
Monitor your Credit
Credit is going to make a huge difference in the mortgage amount, interest rate and how quickly you can get approved. You need to make sure you are building credit without racking up debt. A credit card you use and pay off each month is a start, but you really should have at least two or three other accounts.
Maybe you already have a few loans you are paying on or you have student loans you will soon be paying on. Make sure you pay on time always and keep your credit card balances to an absolute minimum. This will help you get a credit score about 700, which is highly desirable for banks and lenders.
Decide on the Type of Home you Want Now
Having an idea of the type of home you desire in the future, now, will make a difference. You will be able to start getting an idea of how much it will cost, what type of salary you will need to afford it and how much you will need to save. You don't have to know every detail, but having a general idea will help.
Start Saving Immediately
The down payment for your dream home will be higher than you might expect. You will probably want to put down about 20% to avoid added mortgage insurance. If you start saving now and you don't play games with your savings, you will be able to accumulate more by the time you're ready for your dream home than if you wait to save.
Don't put off savings just to own a brand new car or buy the latest things. You can get all of the things you want after you have the dream house you won't be leaving for many years. Avoid lifestyle inflation and the temptation to spend more night out at clubs and eating out all the time.
These are just a few things college graduates should consider now if they want to own their dream home in the future.
Kris Lindahl Real Estate