First time home buyer

Audrina · Joined: 20 Jun 2007 Posts: 1

Hi all. I just graduated from college, and I'm really interested in buying a house. Any advice out there for a first time home buyer? Thanks!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Read the posts around the site. There is a *Ton* of information available here for a first time buyer. Many people have stopped by and asked about their situations and how best to work with a first time buying situation.

Good luck, and let us know if there's anything specific you'd like to ask :)

m2c · Joined: 03 Aug 2005 Posts: 937

This is going to be really bizarre advice coming from a LO but … the first question you should ask yourself is “why?” Every situation is different but buying a first home right out of college is not usual. All sorts of questions – employment projections (e.g., in 2 years will you be making twice as much and want to move); are you ready for maintenance costs; is yard work going to crimp your desire to “party”; how is your liquid asset position (you don’t want to become a slave to a home); future “family formation”; do you have adequate furniture or will you be directing cash to accumulate household supplies and furniture?

Obtain as much unbiased information as you can. There is some homebuyer counseling information on http://www.radian.biz/mortgage/services/homeownership.aspx Over the past several months there have been some “realistic expectation” articles in the New York Time and Wall Street Journal – search the Internet. From your treasurer or auditor web sites get sales information on various neighborhoods.

Above all, remember that a home is a VERY illiquid asset that has HIGH transaction costs. Very easy to get “upside down” in today’s market and many people just out of college have not yet built the financial reserves to weather a storm. I’m making a big guess about your age (i.e., you’re a “traditional college student) and everything might fit in your case. Just do your due diligence and remember there’s nothing wrong with renting for a period of time. I’ve seen “quick out of college” purchases work just fine … AND I get a commission on the initial purchase and another commission when another, larger house is purchased after 2 years (in a rising housing price market this can work; not now). On the other hand I’ve seen some “train wrecks”.

carlel · Joined: 08 Jul 2007 Posts: 10

allow yourself some time to gather a big enough deposit/increase your credit score. this way you'll find it easier to get a mortgage and at the same time pay a lower interest rate.

neverchange · Joined: 12 Jul 2007 Posts: 9

how much income does the average first time home buyer have in california?