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Congrats, College Grads! Tips for Saving for the Real World of Home Ownership!


Congrats, College Grads! Tips for Saving for the Real World of Home Ownership!

Ah, new college grads… sadly, those care-free days of cruising around campus, joining friends for daily social hours and, oh yeah, studying here and there, too, are over. But, as fun as your college experience may have been, there is also a heck of a lot of cool stuff about being a young professional!

First of all, employers know that your generation is social media savvy and they need that! Secondly, you’re eager to soak up your employer’s knowledge and begin applying it… like now! Who wouldn’t like that? And, you know what else, recent college grads? You can start to think about those next big steps in life. We’re not even talking about marriage, children or any of that traditional stuff. We’re talking about an investment that can ultimately pay you back… home ownership!

But, before you dive into the housing market, you’ll need to make sure that a few things are in check first. After all, buying your first home is a big deal. Here are a few things that new college grads can do to begin saving for home ownership:

Start saving: Yes, this tip is absolutely a no-brainer. But, if you’ve entered the working world at a less-than-desirable entry-level salary, saving money doesn’t really seem like a viable option, right? Though it may seem impossible right now, it’s the best first step toward home ownership… and, there are some things that new grads can do to save some money, even on that entry-level salary.

Finding a budget that works with your new salary is a great start toward saving money. Even if you can sock away a little extra cash each pay period, you’re on the right track. This may take a little discipline, like saying “no” every other week to that Thursday night happy hour you love so much or canceling a rarely-used gym membership. Plus, post-college, most new grads live with roommates or parents for a time to save some money. That can be difficult, but it’s nothing you can’t handle when the end result is your own home, right?

Pay off debt: Hand-in-hand with saving money is paying off debt. Wait… new grads are supposed to save some money and pay off current debts, too? Can we all go back to college instead?! Luckily, being timely with debt repayments is not difficult and it establishes good credit… two things that your future lender will love!

Like canceling that rarely-used gym membership, new grads can put money toward paying off debts by skipping some of their favorite “extras,” you know… daily trips to Starbucks, weekend clothing sales… the list of temptations could go on and on.

Improve your credit score: Some new college grads may have been lured into credit cards while they were undergrads. Others may have never even established any sort of credit. What all new college grads should know is that credit is not a bad thing when it comes to home ownership. Of course, bad credit can harm your chances at a mortgage; but, well-used credit can be an asset.

To improve a less-than-perfect credit score, new college grads can make timely, minimum payments on their credit cards and student loans. This will help to build a positive credit history that any lender will approve of.

Consider where you may want to live: This may seem like it should be a far-off thought, but your future home ownership preferences are important from the start, particularly when it comes to saving. You don’t have to buy your forever home from the start, but you do want to be able to afford a home that you’re going to be happy with.

If you seek the city night life, you don’t want your first home to be rooted in the suburbs. If you own a car or do not, you’ll need to check in to all travel options around your prospective new home. You don’t have to be a real estate expert to know what you like in a home… even your first home; but, you do want to begin to notice what’s available and see if it fits your growing needs.

Finally, remember, when you’re saving to buy a home… you’re saving to buy a home! It’s one of the biggest purchases that you’ll ever make and one of the first big things that you’re able to call your own. That excitement alone should make it a little easier to put your savings plans into action!

If you’re a new college grad who needs more help saving for your first home, contact an experienced professional at Pennsylvania Preferred Mortgage today.

This post is sponsored by PA Preferred Mortgage:

Pennsylvania Preferred Mortgage is a full service mortgage banker and is a member of the Prosperity Home Mortgage, LLC family. Specializing in residential and refinance loans, Pennsylvania Preferred Mortgage offers a wide range of mortgage products, including fixed and adjustable rate mortgages, jumbo loans, Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, and renovation financing. Learn more at www.papreferredmortgage.com.