I'm in college and I have been looking for a house to rent for next fall. Some of the rent prices are the same or similar to payments when owning a house. I've found a couple of options for foreclosed houses but I don't know a lot about owning one. Mortgage rates, insurance, down payments, etc. Can anyone enlighten me how to go about buying a house? I'm about to start a co-op in January and will be working full time until August so I will have plenty of money for the down payment and monthly payments. My plan is after college I would still have a place to live and when I moved home or where ever I get a job I would rent the house to college students which would still cover the monthly payments + revenue for me. Any advice on buying a house or any thoughts is appreciative.

 

Hey man head on over to the place where you believe that you will apply for the mortgage. I bank with Chase and they typically have a specialist on site to answer every and all questions that you may have. They know this better than anybody.

I would also apply for a pre qualification so you can see what you can afford, because after all if you can't get the loan you will be stuck renting.

 

If you use a realtor, you shouldn't need to learn as much. If you buy without using a realtor you will need to know a lot more to protect yourself. Things to consider are flood zones, termite inspections, professional inspection. If you don't put at least 20% as a down payment you have to buy mortgage insurance that adds to the payment. This insures the first 20%. Closing costs can add up, especially if you have to pay points on the loan up front.
Maybe you should just concentrate on school and make the best grades you can.

 

^^^Good advice^^^

I'll add this....if you are going to pursue buying a house

Watch out for foreclosures and short sales

Reason....

Lots of times there no room to miss anything wrong and if there is something wrong and you or the inspector there's no recourse with the seller basically yer buying the property "as is"...so be forwarned on that...but of course you might want to check with yer local laws first to see what they have to say

 

I'll give you the best advice yet: DO NOT BUY A HOUSE WHILE YOU ARE STILL IN COLLEGE.....!!!!!!!

All that thing is going to end up being is an albatross around your neck after you graduate and want to relocate for a new job. And the only thing worse than being a landlord is being a landlord from long distance -- especially if your target market is college students!

I have owned several homes over the years, and here's the honest truth: THEY'RE A MAJOR "PIA" IN CONSTANT NEED OF MAINTENANCE OR REPAIR -- SAVE YOURSELF THE HEADACHE AND JUST SAY NO........!!!!!!

 

Then again, I worked with a guy who bought a house when he was in college and rented it out. After he went to work he would buy a house everywhere he worked and rent it out when he left. When I was working with him he had 5 rental houses that he managed himself. With the depreciation and rental expenses, he paid very little income taxes even though he had a 6 figure income. It's a risk though. One bad renter can tear a home apart and if he has no income there isn't much you can do about it.