After graduating from college, you’re now ready to delve into the real world and conquer more milestones. For most, buying a home is a huge leap into adult life and can be your life’s biggest investment. Some may be uneasy of the idea of buying a home right after college, but the key is to prepare yourself for the long run.

The norm after graduating is securing a stable and successful career before thinking about investing in a home or saving up for a down payment. Until then, new graduates usually share a place with their friends or rent an apartment of their own. According to the latest study of Money.co.uk, the average Canadian first-time home buyer is 36 years old.

If you’re a go-getter who’s eager to buy a home right after graduating, kudos to you! Utilize these tips and get right on track.

4 Simple Steps to Take to Buy a Home After Graduation

1. Know what you want (and need)

It’s easy to get swept up by #homegoals in social media and TV shows. When this happens, you tend to forget what you really want. With the pressure of owning a house according to society’s picture-perfect standards, you can fall to the temptation of buying a home or planning for one that isn’t aligned with your goals and aspirations in life.

Are you planning to have children? Do you want to live in a diverse neighbourhood? Knowing what you want for your future and having a clear picture of the future will help you create an intentional plan focused on your goals.

Start researching for your ideal neighbourhood. Know the type of home that’ll fit your future plans and living situation.

Exploring the real estate market will definitely be overwhelming, but knowing what you want will help you move forward productively.

2. Be sure to get a job aligned with the home situation you want

Your adult life will have a lot to do with logistics. Now that you have a clearer picture of your goals, you need to consider if this’ll be realistic, given your situation. For instance, are there job opportunities available in the area where you want to live or will you be commuting if not working remotely? When it comes to home buying, you can never look too far ahead.

There’s a lot to consider when buying a home. Realistically speaking, it’s about money. If you want to own your dream home, you need to get a high-paying job that’ll help you save up for a down payment. When choosing a career, make sure to think about the cost of living in the community you’d want to live in.

3. Build your credit

A high credit score is a crucial item you’ll need to tick off from your checklist. Your credit score determines your eligibility for a home loan as well as the mortgage rates you’ll have access to. Mortgages in Canada are largely based on risk-based pricing. This means that lenders will look at the risks on your credit profile and base the cost of mortgage on every risk. Simply put, the higher the credit score, the better the mortgage.

4. Know the market and plan ahead

Buying a home early requires you to start planning earlier too. To get a viable plan, you need to learn about the market as much as you can.

Learn mortgage options that are available to you. There are loan options for new graduates and first-time home buyers. There are also loans that don’t require long-term employment, as well as rent-to-own programs that’ll help you build equity with a smaller down payment.

Consult with an experienced and trusted mortgage broker to help you get a full picture of your financial portfolio and help you get started on your home-buying journey.

Bonus: Helpful Tips to Get You Ahead

Still nervous about your home goals? Here are some tips to help you get ahead!

Start saving

Having adequate knowledge about the real estate market will help determine the affordability of a home and the budget you’ll need in order to get there. 

Depending on the type of mortgage you choose and the average cost of homes in your area, you’ll need to save a significant amount of money for your down payment, which is usually 20%. 

Eliminate debt

A financially-secure future is freedom from debt. Thus, you’ll need to secure a high-paying job or multiple streams of income that’ll help you pay off your debt without sacrificing your savings. Yes. It’s hard work, but once you’ve eliminated your debt, your future self will thank you. 

Start ASAP with a plan

Being a first-time home buyer is never easy and doing this immediately after graduating is even tougher – but still possible. Everything starts with a plan and taking action. With this, be prepared to go against the flow and live a lifestyle different from your peers and most college students.

If you think homeownership is for you, talk to a trusted mortgage broker as early as possible who’ll help you plan and execute your vision. 

Daisy Raouph is a mortgage broker and a financial security advisor who can help you get your dream home. Consult Daisy today!

Get started with Daisy Raouph today