Has anyone bypassed renting their first apartment and just went straight for a house?

[thekid973]

I just finished college last May, have my loans under control, financially stable, so I deem it important to try and fly the coop. My credit is about average if not more, and I have a pretty good amount in savings that will only increase as the year goes on. So as I'm searching for apartments, I think its crazy to pay $1300 + utilities for a one bedroom in a so-so neighborhood when I can pay a mortgage. I know a house is a lot more responsibility especially with taxes, maintenance, and other miscellaneous city fees. I'm going to take one of those house buying courses to get a more general idea. Has anyone made this step? How did it work out?

 

[Top Boy]

I'd worry about getting your loans paid off rather than simply handled.

Really all depends on how much you have in loans though. 

If it's not much, then id say that's a pretty smart move. 

Still in college, not an expert.

 

[thekid973]

My loan is less than $30k and scheduled to be paid off in 7 years at my current monthly rate. I'm not too worried about that. I can't stay at home worrying about just paying that off.

 

[cl-1b]

If you have a high balance of student loans i doubt they would loan that kind of money to you right now... and even if they did the interest rates will be a little higher because your a first time buyer and young but if you go for it, deff go thru a credit union rather then a bank... you may have a better shot at getting the loan/better rates. If you have a substantial amount to put down, id see if your loans offer an early payoff that would eliminate some of the interest. Im not sure how student loans work in that sense tho. 

 

[cl-1b]

also, they will ask for all tax/income verification documents.. so keep that in mind as well

 

[heliumclinton]

Not that simple as "man I pay a mortgage for that rent price I'll just buy a house"

 

[pdino]

I just finished college last May, have my loans under control, financially stable, so I deem it important to try and fly the coop. My credit is about average if not more, and I have a pretty good amount in savings that will only increase as the year goes on. So as I'm searching for apartments, I think its crazy to pay $1300 + utilities for a one bedroom in a so-so neighborhood when I can pay a mortgage. I know a house is a lot more responsibility especially with taxes, maintenance, and other miscellaneous city fees. I'm going to take one of those house buying courses to get a more general idea. Has anyone made this step? How did it work out?

I always rented during college when I moved away, but when college was over I got home and started immediately looking for a place. I got a place after about 8 months of research/looking/saving up. I put down 3.5% with an FHA loan and it's currently in a mortgage impound account (includes everything), for 2800$ total monthly for a place worth 440,000$, I put down 25,000$ total. I bought a duplex, and charge the tenant 1600$/month + utilities. I live in the other 2 bedroom unit and rent to a roommate for 600$. I pay for all insurances, cell phone bills, cable bills, security system bills, utilities with no help from any friends or family in any shape or form. I am down to 38,000$ in student loan debt with a monthly payment of 500$/month w/ 7 years left.

 

[thekid973]

I'm soaking this all in thanks fellas. If a credit union is better, I'll have no problem going over there and see what they're taking about. A $25k down payment on a house is very doable. I'm not going to just jump out this is all much needed research.

 

[dopeness]

My loan is less than $30k and scheduled to be paid off in 7 years at my current monthly rate. I'm not too worried about that. I can't stay at home worrying about just paying that off.

Good luck. Even if you wanted to buy in this climate, your DTI ratio is offset by your repayment obligation for that 30K.

That's no laughing matter.

 

[Top Boy]

Sick.

Im sitting at 18K in loans posted at the crib...

Will have it paid off by May so I don't have to worry about it. Still got like a year and a half left of school.

Just don't see how anyone can feel comfortable with that amount looming over their head.

 

[thekid973]

Good luck. Even if you wanted to buy in this climate, your DTI ratio is offset by your repayment obligation for that 30K.
That's no laughing matter.

That was the biggest issue I was contemplating... At first I wanted to put all my savings up and just pay off this loan in full, but after working so hard to earn it, it would hurt to start at $0 again. Loans paid off and broke as ****. I know that sounds backwards, but I was cool with the monthly accelerated rate, but maybe I should double up the payments to lower my DTI.

 

[pdino]

That was the biggest issue I was contemplating... At first I wanted to put all my savings up and just pay off this loan in full, but after working so hard to earn it, it would hurt to start at $0 again. Loans paid off and broke as ****. I know that sounds backwards, but I was cool with the monthly accelerated rate, but maybe I should double up the payments to lower my DTI.

This will effect how much home you can afford. They basically subtract your monthly debt from your monthly income and use that new number to decide how much home you can afford. You can get around this with a co-signor, but make for damn sure you can afford your payments.

 

[ballahb]

Holding off on renting, saving to buy at the moment.

 

[SneakerProSr.]

Sick.

Im sitting at 18K in loans posted at the crib...

Will have it paid off by May so I don't have to worry about it. Still got like a year and a half left of school.

Just don't see how anyone can feel comfortable with that amount looming over their head.

18K is a used Camry.

I encourage all people especially people of color to own property as fast as they can.

 

[jp310]

I'd like to do the same. Maybe start with a condo that i can flip, but need to keep saving up.


OP, What state do you live in?

 

[capital sb]

You can get a house with a low length of employment. I purchased my home with 5 months of employment. Your loan balance on your student loan doesn't affect you getting approved for a loan. Your debt to income ratio does.

If you are comfortable with everything that comes with purchasing a home I say go for it. Just make sure you are buying what you want, don't buy more than you can afford, and buy in an area that would make it easy to sell if you needed to in the future.

Yeah can't be tripping over 18K of student loans, the most lenient loans out here.That would be the least of my concerns when deciding to buy a home. You all do know that your DTI goes by your monthly payment right? Not the overall debt total.

 

[SneakerProSr.]

You can get a house with a low length of employment. I purchased my home with 5 months of employment. Your loan balance on your student loan doesn't affect you getting approved for a loan. Your debt to income ratio does.

If you are comfortable with everything that comes with purchasing a home I say go for it. Just make sure you are buying what you want, don't buy more than you can afford, and buy in an area that would make it easy to sell if you needed to in the future.

Yeah can't be tripping over 18K of student loans, the most lenient loans out here.That would be the least of my concerns when deciding to buy a home.

+1

 

[thekid973]

^^^ That's exactly what I'm saying... I never tried to get the payments lowered, I just want to pay it off in less than ten years. That's the only money I owe anybody. I'm in north NJ btw. I'm looking at a couple of houses in the $200k or lower range with a $50k down payment.

 

[ballahb]

In terms of buying condo or house?

 

[thekid973]

In terms of buying condo or house?

Now since that's been mentioned I'm researching a condo might be the better option for me. Rent to buy of course.

 

[dopeness]

That was the biggest issue I was contemplating... At first I wanted to put all my savings up and just pay off this loan in full, but after working so hard to earn it, it would hurt to start at $0 again. Loans paid off and broke as ****. I know that sounds backwards, but I was cool with the monthly accelerated rate, but maybe I should double up the payments to lower my DTI.

Sadly, it doesn't work like that. What you could do though is try and make a larger down payment.

 

[iamjusayn]

You can get a house with a low length of employment. I purchased my home with 5 months of employment. Your loan balance on your student loan doesn't affect you getting approved for a loan. Your debt to income ratio does.

If you are comfortable with everything that comes with purchasing a home I say go for it. Just make sure you are buying what you want, don't buy more than you can afford, and buy in an area that would make it easy to sell if you needed to in the future.

Yeah can't be tripping over 18K of student loans, the most lenient loans out here.That would be the least of my concerns when deciding to buy a home. You all do know that your DTI goes by your monthly payment right? Not the overall debt total.

With FHA student loans are factored into your DTI now. Please don't mislead...

 

[frshstunna]

You still young OP , you really wanna have the responsibility of a mortgage right outta college ?

Young ppl rent not only cuz of the money but more flexibility /instability at that time in life

 

[capital sb]

Nobody is misleading. Maybe you misunderstood what I said and did not read what others were posting in here. I am saying that your DTI is not calculated by your total overall debt as in his 30K in loans / x salary. It is calculated by the monthly payment of the 30K loans/ x monthly salary.

Others in here were saying he wouldn't be approved because of the high loan balance on his students loans. That's not how DTI is calculated.

OP I'm not sure who your loans are through but if they are federal you can change your monthly payment method at anytime to lower your DTI. If you wanted you could change your payment method to the fixed extended plan (25yr) and continue to make your same payments to keep you on track of your 7yr payoff. You also have to think about monthly car payment and monthly CC debt if you have any when calculating your DTI.

 

[girlthatsblanco]

I really comes down to how much money you have saved up for a down payment and to close. There's different loans you can get, but many banks won't approve you unless you have been at your job for at least 2 years. Also, I suggest trying to get pre approved over pre qualified. It holds more weight with sellers.