Buying a home instead of renting

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Bad or good idea?

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It all depends on how your execution goes. Could be a really good idea. But also could screw yourself over if you pay too much for the home, home prices drop, bad renter, or no renter.

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When I graduate

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How's your credit history and your credit score? Most recent grads don't have enough of the first to get the second high enough to qualify for a mortgage.

How are your savings and cash reserves? You're going to need plenty of both to buy a home in this lending climate.

How's your employment situation? A lender isn't going to look to lend without an employment history and I'm talking real full time employment not flipping pancakes part time while at school.

It's great that you want to do this but honestly the deck might be stacked against you at this point in your life.

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Bad or good idea?

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I did the similar when I graduated. Had two roommates who were underclassmen and also good friends. Between their payments each month, they covered my mortgage. I paid the bills essentially.

THIS IS IMPORTANT
You need to make sure you can make the payment on the house, pay the bills, pay for repairs if they come up, WITHOUT roommates. You never know what may come up with them which may lead to you living there alone.

In reality it is a good idea, especially for someone just out of school. There are, however, factors which could turn it into a nightmare if you are not prepared.

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In terms of credit, I talked to my dad and he would be willing to cosign the lease as long as I have a job set up

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It's a mortgage not a lease, big difference.

Cosigning on a home isn't like cosigning on a car note. Your credit is going to be important to the transaction and if you don't qualify on your own in todays lending market you almost certainly still won't qualify with a cosigner.

What you want to do is admirable for a young person and I commend you for it. Unfortunately in todays mortgage market it is going to be a difficult goal to accomplish.

$10K is going to limit the price of a place you can buy, unless you find a lender than lets you go below 10% down.

You need to really think about if you want to live wherever you're buying this house for at least 5 years. There are tons of fees that go with buying and selling a house, and that is even assuming you will be able to sell if you decide you want to move.

Personally when I got out of school I lived in 4 different cities before I ended up somewhere that I stayed for a while. My opinion is that limiting your flexibility right as you come out of school is not good.

insightful talk.. as own thing is always free from tension.

I would suggest waiting also. Continue to build up your money for a down payment. At your age you don't really know what all you want to do. Use this time as a time to build up your savings and then once you graduate and get into your chosen field work towards getting a home.

The benefits of lower interest rates now may not outweigh any cost you incur if you find yourself unhappy with the location and having to sell within a few years.

If you're handy with repairs it's a good idea. If you have to call a guy every time something goes wrong (and with an older cheaper house, stuff will go wrong) then it's a bad idea.