Things to Keep in Mind While Applying for a Home Loan in Your 40s
Gone are the days when there were set timelines to achieve life goals. Nowadays, be it getting married or buying a house, confidence in taking that decision is of paramount importance. So, if you are planning to buy a house in your 40s, this could be the right time to move into your dream home. Moreover, a home loan can help you do that quite easily. However, you must be careful about a few finer aspects while applying for a home loan.
Here are a few points you must keep in mind while applying for a home loan in your 40s.
Things to Consider while Availing a Home Loan in Your 40s
Choose lender carefully
Do thorough research while choosing the lender when you apply for home loan. It would be better not to assess the lender only based on interest rates. You should also consider other factors like repayment flexibility, documentation, lender’s credibility, etc,. Don’t miss out on enquiring about different loan related costs like prepayment charges and processing fees.
Avail a joint loan
So, when you are taking a home loan in your 40s, it would help to avail a joint home loan to increase the chances of loan approval. In a joint loan, the lender takes into account the income of both the applicants to evaluate home loan eligibility. As income is one of the important criteria for home loan eligibility, taking a joint loan with your working spouse can help you take a high-value loan. You might have other financial commitments to fulfil at this age, so a joint loan would divide the repayment responsibility between the two and make it easier for both to repay the loan.
Try paying a higher down payment
Taking a home loan in your 40s would reduce the maximum tenure you can avail. Therefore, it would be better if you can reduce your loan amount by paying a higher down payment. A higher down payment would reduce your monthly EMI payout as well as the overall home loan interest rate. However, avoid utilising all of your investments or emergency funds to pay a higher down payment.
Adjust your loan tenure
The maximum tenure of a home loan in India is usually around 30 years. Considering that the retirement age in India is 60 years, the maximum tenure that the lender might give you at the age of 40 would be 20 years. If you can afford a higher EMI, you can opt for a shorter tenure of 10-12 years.
There is no right age to purchase a home. You should invest in a house only when you are financially prepared, as it could be a huge financial obligation. Whether you are in your 20s, 30s or even 40s, you can easily fulfil all the home loan requirements to buy the house of your dreams if you plan it well.
While you are in your 40s, you might have a stable job with a consistent flow of income, while the responsibilities on your shoulders are limited. You could also have started a family. Whatever be your situation, usually, 40s is the time when you can comfortably invest in a house. Moreover, returning to your own house at the end of the day, can give you a sense of achievement and calmness that a rented place might not be able to do. So, If you are ready to move into your dream home, do not delay the decision any further and apply for a home loan today!