Wednesday, July 29, 2015

Applying For A Mortgage As A Recent College Graduate

Being a recent college graduate can be fairly overwhelming.  It is a time where you are paving a new path for yourself; including starting a new career path, buying your first home and taking on the payments of your more real than ever debt.  You are faced with many big decisions, some more daunting than others.   This does not have to be the case when looking to buy your first home.  Once you understand what type of home you can afford the purchase of a home can be in the grasps of most recent college graduates.
The first thing you must consider when buying your first home is the amount of money that you have coming in each month in comparison to the amount of money you have going out.  This calculation is your debt to income ratio.  Once you have a grasp on this it is time to meet with a mortgage broker.
During the initial meeting with a mortgage broker or lender a professional will discuss with you the differences between buying a home in case verse using a mortgage to purchase a home.  In order to receive a mortgage preapproval your credit history will be scrutinized.  This allows lenders to make an educated analysis on your risk.  They need to determine if you have established a history of good credit as this will help them determine an amount they can lend comfortably.  Mortgage companies want to ensure that their investments will be paid back.  This is what your credit history tells them about you.
When you are looking to buy your home, especially as a new college graduate you must consider your future both near and distant.  Are you looking to start a family soon?  Are you looking to return to graduate school?  What exactly does your future look like?  Will you be acquiring additional expenses without additional income?  These are important questions to answer before deciding in actuality what you can comfortably afford in a new home.
If you are likely to move or relocate with your company does it make sense to purchase a home right now?  A lender can discuss current market conditions while a real estate agent can help target homes within your budget that are likely to sell quickly in the future if need be.  A major consideration is if you will get your investment plus equity if you need to sell within five years of your initial purchase.
Buying your first home is an exhilarating experience.  As a recent graduate many of these firsts can be overwhelming; buying a home doesn’t have to be.  Take your time making decisions.   There is never a rush when it comes to taking on any size financial commitment.
Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at

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