Eight Things Graduating Students Should Know Before Getting Into the Housing Market *rough*
Rough Draft
For a student graduating from university, the best things that you can do is to properly set yourself up for the housing market. A lot of people find the housing market to be intimidating because of the vast amount of information one must learn.
SOURCE sat down with Blake Mcbartlett, a teacher at Colorado State University and owner of McBartlett Cavalier McBartlett Collective to discuss the best ways for graduating students to properly get themselves into the housing market.
Live with roommates: Find a house with a cheaper mortgage and subsidize the extra rooms to friends or family. This is essentially just the next step up from renting in college with you as the owner .
The legal minimum down payment: The legal minimum for a down payment is 1-3%, a 20% down payment is not legally necessary although the fees may be higher than if you were to get a 20% down payment.
Funds: “I would say that you should have 3% of whatever the homes value you’re looking at.” A $500,000 house would be around 15,000 dollars. Remember, this does not include furnishing the house.
Save: If possible, moving home for one or two years and saving most of your money is the most beneficial way to save. If you have to rent; find a cheaper place to rent and live below your means.
Pick a Price Range: Find a price range and save for a 1-3% down payment within that range.
The Two Year Period : “You are not buying your forever home, plan for a little over two years. Once you sell the house after two years of it being your primary residence, unless your family has a combined income of $500,000 or you are single and make $250,000 you don’t pay capital gains on that”
"VA loans: VA loans require 0% for a down payment.
