A few recent college grads looking to purchase a home reached out to us with some questions. Here’s what our CEO, Justin DeJoseph, had to say.
“My husband and I both recently graduated from college but we’re concerned it’s too soon to look into a buying a home. Can recent grads get approved?”
Yes college grads are 100% eligible for home loans, the things that play a large part in the approval process is the type of job and the income. As long as you receive a base salary we can qualify you off that income with as little as one month’s earnings. If you’ve been working less than two years since graduating, you’ll most likely be asked to provide college transcripts with dates to prove that you went to college.
“Is $60,000-$70,000 per year of combined income enough to sustain a mortgage without worrying?”
Of course it is – however it comes down to the purchase price of your home along with the property taxes and your ongoing monthly debt obligations. There are certainly some things to take into consideration. For example, if it’s a condo you should factor in the monthly HOA (Home Owners Association) fees to be sure you can afford the total monthly payment.
“How much do we need saved up for a down payment?”
All you need is as little as 1% down payment if you meet the 1st time homebuyer requirements. We can also do 3%, 3.5%, 5% with competitive rate options that are similar to putting down 20%.
If you own your home it’s not unlikely that you’ll be paying a mortgage payment similar to your monthly rent. Even if it’s slightly higher you have added benefits. When you own your home you have the ability to write off property taxes paid along with the interest you paid on the mortgage for the year. These write offs will help you save on the amount of federal and state taxes you pay.
“So it’s really possible to own my own home?”
Yes, as long as your credit is above average and all payments are paid on time with no defaults, and you’ve had no late payments in the past two years. While these are only a few of the qualifying factors, they’re the big ones we look out for at Garden State Home Loans.