Homebuying...fresh out of college

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I got a great job offer in Texas, and am considering buying a home.

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Rent for the first 6 months. Look into subdivisions, check out driving time, check with people you work with on locations, etc. Then buy.

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Rent for the first 6 months. Look into subdivisions, check out driving time, check with people you work with on locations, etc. Then buy.

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Agreed, unless you already know the area pretty well. There's no rush, prices aren't exactly skyrocketing in DFW.

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Also, in the mean time get a few credit cards to build your credit.

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Well, get one or two. It'll take a few years to really build things up even if you pay all the bills on time yadda yadda but might as well get started.

I am in Houston and still ton of foreclosures going on so I would tell you as others did to rent (6 month lease) and get to know the area and what you are looking for - more importantly what you can afford. I don't think you need to rush into a house by any means and expect the home credit to be extended in some form. Location will play a role in how much home you can buy of course - in Houston the closer you want to Downtown the more you will pay for less space.

Once you get your position you can see what your take home pay is and from there establish how much home you can actually afford. Biggest mistake I see young people make is they buy to much home and therefore you become "house broke" Think of your first house as a starter and you can always upgrade down the road when you need the space.

Also, you can just goole mortage calculator and they will give you a good idea of how much a mortgage payment would be (most won't take into account home ins./property tax/homeowners dues

A loan officer/mortgage guy could also help you with this. I have used a guy in Houston to help my clients get a quick jump in credit to get ready for a home (credit analyst) - they might be something you need to look into

Good Luck

I have several friends with "great jobs" some are married some are not...


BUT ALL OF THEM SAVED FOR AT LEAST A YEAR

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2) You probably don't have enough saved up for a down payment and i would suggest having a decent amount of savings before getting a house

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I understand your rush because you beleive the time is right...I beleive the time will be still right a year from now...but you really need a decent down payment or you will be waisting alot of money in the long run.

Take it with a grain of salt, I have no personal experience.

As referenced above prices outside of loop in Houston for real estate in Texas is incredible ...especially with Katy, Richmond, Perland, etc. continue to expand and build new homes.

I-10 is much improved and I soley use Westpark Tollway which is extremely quick for me

Pro of living outside of loop more house less money and yard...inside loop probably minimal yard at best hell lots are going for 200K but if you needed to sell it could be done much quicker than outside loop

Friend renting out never a bad idea - however it really comes down to your cash flow and I would buy a home soley basing it off of my income not hoping you have a tenant...so I would say that is a non factor

If you have friends in the area have them show you different spots in town or have a real estate agent give you some ideas

Also, you apply for the Texas Homestead Exemption and that will lower your property tax...I actually thought Texas had low property tax, but it varies depending upon county

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but Zero in state income taxes

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This is true whether he rents or buys.

Note I am no mortgage guy - As you near buying home, mortgage person can give you estimates and pre approve you for an amount - given your income I don't even think you could get a home that size

In my opinion way too much home...estimate property tax at 3% (depends on county) would add around $625 to the $1,663 not to mention you still have utilites and might estimate home owners dues/insurance at another $250 per month. I would say you might want to focus on the 150-175K - of course extremely hard if not impossible to do inside loop

I have some good material I can email you for first time buying of home if you want to leave your email...it has some tools to use and lingo to read up on

Anyhow, I live in Katy if you ever want to see that area - new Bakers Street is a plus

Also, LSU ALUM has great chapter in Houston - lsuhouston.com

Certainly. But the tax is *built in* to the rent, whereas if you have a mortgage you have to calculate it and add it in separately. I think too many people neglect to do that. Not a big deal in LA maybe, where the amount is much less, but could be relevant in TX.

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In addition, since it isn't itemized you don't get to deduct this 'indirect' tax on your federal income tax the way you do if you directly paid it if you owned.

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This is true. But if you're considering this, run the numbers through the IRS tax calculator to see how much it's actually going to save you.

And as to my actual point, it is absolutely true that whether you rent or buy will have absolutely zero effect on your state income tax rates.

I'd rent an apartment inside the loop. In addition to being more mobile/portable as far as career opportunities and advancement, don't underestimate the power of hotties laying out by the pool and having a bar close by. Start saving for a down payment, but don't buy until you get married and have to move to Sugarland/Katy.