I graduated from college in May, and I already have a job in my field. It was a part-time position that went full time, so I already have $15,000 in an IRA and about $23,000 in savings. Iím also debt-free, because scholarships paid for my education. Am I ready to buy a house?
This is an awesome position youíre in right now! Financially, youíre okay to buy a house.
I do have one slight
hesitation, though. There are going to be lots and lots of things happening in your world during the next few years, and thereís a possibility youíll end up movingómaybe for a girl, or even another jobóduring this time period. Itís going to be a time of transition, and having a piece of real estate tied around your neck could be a huge pain. But if youíre sure thatís where you want to be for a while, then itís not such a big deal.
Keep in mind that thereís a word for real estate
that sells quickly, and that word is cheap
! Lots of times, the only way to get out from under something like that fast is to practically give it away. Itís a great time now to buy a home, though. Itís like theyíre on sale. Interest rates are really low, too.
Donít use the entire $23,000 as a down payment on a place, and keep an emergency fund of three to six months of expenses set aside. Make sure you get a 15-year, fixed-rate mortgage, too. If you play this right, Zack, youíre going to be sitting pretty!