At what age you should buy a home
There is no certain age to buy a home. There are several other factors that could govern your home buying decision. At whatever age you are, your financial stability is one of the prime factors that may decide upon your home buying decision.
One must possess a good credit score, enough income to bear monthly repayments and a desire to live in the locality for a long period to make a home buying decision.
However, depending on your age, you might have other considerations while buying a home. Let’s look upon these considerations and what can be done about them to have preferable conditions to support your home buying decision.
Buying Home at a very Young Age
Some individuals dream to own a house as soon as they land up a regular paying job. However, just having a regular monthly income is not the only consideration for many lenders to allow you to borrow a home loan.
They also seek your financial stability. Most of the young people who have just started, face problem to secure a loan as they don’t have enough credit history to support them. Also, they may be facing challenges towards savings for down payments required for such a home loan.
First thing is, you must seek stability in your current job and vicinity in which you wish to buy a home. It should not require you to relocate to a different location which is hard to reach from your current job location. Since you have just started, you may already be facing enough challenges around your day to day life, and you would like to add up long traveling time to that routine.
Financial Specialist suggests that one must spend at least three years in a job before seeking a home loan. This not only gives you stability in your income stream but also helps you with enough time to build a good credit history.
Then to show positive credit history, try to keep your debt to income ratio low and try not to default any of your payments during this period. Often young people tend to overspend and switch from one credit card company to another.
In the finance world, all your credit cards show up in your credit history and one must possess not more than two credit cards at a time. Also, while you switch your credit card, do not forget to close your previous credit card by following a proper procedure.
Normally one should seek a NOC from the respective bank for his or her credit card.
To help you with your down payments, you can make a habit of saving as much as possible in your monthly salary. Then you can ask your parent for help for an additional amount of your down payments. Borrowing from your friends and family is yet another popular way to get money at low or no cost. here is a detailed guide about how you can reduce your EMI.
While seeking lending options, you can ask your parents to help you by signing it as a guarantor. This will up your chances to get a loan as your parents must be having a good and long credit history and when this adjoins your application, your loan application becomes much preferable to your lenders.
Also, before you start looking for loan options, just get a copy of your credit report and see where you stand. Also, this will allow you to correct any mistakes in your credit report rather than having a surprise later after applying for a loan.
Buying Home at Old Age
The trend shows that most of the people buy their dream home at the age ranging from 45 to 55 years.
This might be because they tend to save a lot by then to buy their preferred home. However, one must take a wise decision before making an investment in buying a home. Being at that age, you might also be serving several other obligations towards your children and family and must be addicted to a certain lifestyle.