Buying a house for vet school, help!!!?

ramzi e: Buying a house for vet school, help!!!?
Hi,
I’m going to veterinary school in about 2 years, and instead of renting, I was thinking about buying a house and renting a room or two. I have no credit right now, so tomorrow I’m getting a credit card and going to start building my credit. A typical 3 br house around the vet school is around $ 300,000 , so I think by renting the two other rooms I could make enough to cover the mortgage. Plus I will have a big financial aid loan that can help with the payments.

The big problem is that I will not be able to work during vet school, so it would be really hard to get a mortgage. What should I do?

Answers and Views:

Answer by yacht_moondust
First rule of thumb is always to KNOW that you alone can cover the mortgage. No friends, family or tenants to help out – just you on your own. Friends and family should never help out – it makes for uneasy times. Tenants can and do disappear and you will be left holding the financial responsibility if they do.

Do what you need to do to build your credit but be careful – miss a couple of payments and you don’t look so good then. Pay the credit card off immediately every month not just the minimum amount. So never buy anything you can’t afford to pay cash for.

Wait for a while before rushing into such a big investment you still have two years before you start studying and once you are studying it is extremely difficult to pay off a mortgage so wait until you graduate and use all the money you have saved and your financial aid loan and the ‘good credit’ you have made and then, and only then, buy something you can afford.

Start small too – this is a big trap for people starting out on buying property they want the big house and all the mod cons. This is unduly stressful and not necessary so start small and pay it off really quick. Then look at moving up and if you are successful as a vet you may find you can keep the small place, rent it out and use the equity to buy yourself a bigger place. Then you are a very liquid (financially) person and you keep building on that from there.

Never spend more than you earn and you will always be rich.

Answer by Ace
Your first priority is to finish veterinary school. How is buying a $ 300,000 house going to help you finish school? First of all mortgage companies will not loan you the money to buy a house. You don’t have a job. You can’t make the payments. You want to rent rooms? You’re not a landlord. You are going to be a student. A student that needs to concentrate on going to class and finishing school. Live on campus or get you a small apartment off campus.

Answer by Expert Realtor
1. You need 2 years worth of full-time work experience in order to get a mortgage.

2. You cannot use “roommate” income to QUALIFY for a loan…you have to do that with your own income.

3. If you will need the rent in order to pay the mortgage, then you are making a major financial mistake.

4. I think you need to consult with veternarians on what you can expect to make your first few years as a vet. Do you realize you can NEVER bankrupt student loans? My husband’s best friend graduated from vet school…and his first few years didn’t even break $ 90K…plus he had tons of expenses at his new practice.

That is the AVERAGE salary for a new vet…many, never make more than that.

I think you are very, very misguided on how hard loans are to pay back and are going to get yourself into some very serious financial trouble if you go that route. Most med-school/vet-school students live as cheap as they can…they don’t buy property, they don’t buy expensive cars b/c you will have to pay it back later….and you’ll be shocked at what your monthly payments are.