There are many reasons why buying a house while still in college can be beneficial. Leaving the nest of your parent’s home and finding your own place to live during college can be a lot of work. Most college housing is overpriced and hard to get into so why not review your options and buy a home while still in college?
1) Choose your home’s location while in college
You can choose a location nearby your college which would make it convenient for you when commuting to school or work. If you are attending a college that is already in your community then buying a home in that area could become a great long term decision.
2) Have your college friends live at your house
If you do not plan on settling down and starting a family anytime soon, one of the great things about buying a home while in college is that your friends can live with you. A home filled with your friends could become the ultimate bachelor or bachelorette pad. Living with friends also means that you will be living with people who you love and trust. Many apartments have a limit on the amount of the people that can live with you but in your home you can live with however many people you choose.
3) Have your friends pay your mortgage payment
Another great benefit to living with friends is that they can help you pay your mortgage payment. Your overall house payments could be a lot lower saving you a ton of money over time. With you and your friends cooperatively splitting the expenses it would lessen the burden of the costs and raise the level of comfort in the household.
4) Make a profit from renting your home in college
After buying a home in college you can decide to rent out the home to other college students or others who are interested in renting a house. The initial cost of the house may be large but when renting it out you will eventually pay yourself back and make a return on your investment. Large profits can be made from renting out homes and these earnings can even be used to help pay off your student loan debt.
5) Pay down a mortgage and earn equity in your home
When making payments on your home you will be earning equity which in the long run you can use to buy a new home or even build your own personal wealth. Making your payments over the term of your loan will also lead you to pay off the loan over time. If you paid your home loan off you will own an asset which can be very valuable especially if you plan on selling the home at some point. Since many homes increase in value as time goes by you can make a profit after selling it. Owning a house is sort of like owning a car because after it is paid off it is officially yours.
6) Owning a house can be cheaper than renting
In many cases the monthly payments of owning a home can be lower than the payments of renting. Owning a home can also have tax advantages that you will not receive from renting. A big difference is when making payments that go towards rent you are not investing in owning it but instead just leasing it for a specific time period. Owning a home can save you a lot of money on expenses that would otherwise be accumulated through long periods of renting.
7) You don’t have to move each year when your lease is up
Owning a home can be very convenient especially in terms of moving. There will be no need to worry about a lease ending or having to pack and move after months of living there. So as the year ends just sit back and relax with no worries of relocating.
8) Buy large items that you can’t when you rent
There are many things you can do with a house that you cannot with an apartment or other living arrangements. One of them is buying large items. Large items that usually cannot fit or are limited in the average apartment are pool tables, trampolines, swimming pools, big dining room tables, large furniture, work out equipment, pets, many big screen TVs, etc. Many apartments have restraints on how you would like to customize it. With a home you can continuously add to it, decorate, and remodel it until it is the home you have always dreamed of.
9) Party, Party, Party at your college home
If you are someone who likes to party or even have a large gathering with friends you may find it much easier to have these in a home. In a house you can usually have your music louder than in an apartment. Loud music and talking inside in an apartment can typically lead to complaints from the neighbors. Many houses also have spacious backyards for BBQs and other activities for you, your family, and friends.
10) Privacy that cannot be found in apartments or condos
A home will give you a level of privacy that apartments or condos usually cannot match. Everything from studying, dating, or even bringing groceries in could be much easier in a home. At times many apartments can be loud with the sound of your neighbor’s music, loud conversations, or even the sound of those above you walking around. With a home you will have your own driveway and no longer have to share communal areas and hallways. As a college student the amount of privacy in your home can be a key advantage over renting.
Apply to buy a house while in College with Riverbank Finance
Buying a home in college may be a great idea for you however it is important to know that not everyone will be qualified to buy a home. To be eligible for a mortgage to buy a house, you need to have established credit and a consistent monthly income. Typically banks and mortgage companies will require that you have three bills that have been in your name, and paid on time for the previous 12 months. Some banks will use alternate trade lines such as cell phone bills and car insurance to qualify.
Your summer job mowing lawns just won’t cut it. You will need to have year round income that is easy to document to show you can afford a home while going to school. Typically banks require that you have two years of job history and work consistent hours to qualify. If you think you might be ready to buy a home while in college, submit your information below or call us now at 800-555-2098 for a loan pre-approval.