It won’t be incorrect to say that almost every person dreams of owning a home. But, since this asset is one of the greatest of life’s investments, most procrastinate their useful years, not feeling ready to take up the challenge of home loan repayment. But, who is on the right? Those who choose to embark on this journey of homeownership early on or those who decide to wait? Let us find out.
When Should You Buy a Home?
When is the right time to apply for home loans and purchase your dream home? Find out below –
- When you meet the home loan eligibility criterion for age – 18 years
- When you can bag a good home loan offer
- When you are ready to take up the responsibility of owning and maintaining a home
- When you can afford to pay the home loan EMIs and other recurring expenses that accompany homeownership
- When you can afford risks – surprise maintenance expenses or your home losing its resale value due to a weak market
Advantages of Buying Young
The perfect age to take a home loan has often been argued to be 22 to 34 years. Do you feel that’s too young? Well, if you can swing it, the decision could be one of your life’s best choices. Here’s why –
- Creation of Wealth
Homeownership is the road to improving your net-worth. Most young homeowners look at their homes as an investment in the future. After all, your monthly home loan EMIs help in building equity in the property as you continue to repay your home loan. This can be used for another property or other future needs. Instead of giving away 100% of your monthly home payment to a landlord, you get to save a portion of each if you own your home.
- Hassle-Free Loan Repayment
If you take advantage of your ability to buy a home early by applying for a home loan, you will finish with its repayment well in time of retirement. Moreover, by the time your loan tenure would have matured, your property’s value would have significantly increased, making it a great asset. And all this will happen seamlessly since you get the most prime years of your life to repay your home loan.
- A Place to Call Your Own
Living in a rented property will never be the same as owning one. Rental living has its woes – nagging landlord, maintenance issues, needing to look for a new place, too many restrictions, etc. Owning a home means you get the freedom to not only decorate it the way you want, but also to live the way you please.
Things to Consider while Applying for a Home Loan
Keep these factors in mind before you hasten to apply for a home loan –
- Credit Score – Without a decent credit or CIBIL score of 750 or above, you may not be able to meet the home loan eligibility criteria
- Home Loan Interest Rates – Who doesn’t want low home loan interest, right? Well, then make sure your credit record is clean – repay all your previous loan and dues before applying for a home loan
- Repayment Capacity – Can the home loan EMIs interfere with other important financial commitments? A simple online home loan calculator such as the home loan EMI calculator will help you find out.
Be careful, plan well, and take the plunge! There is no reason to hesitate when it comes to fulfilling life’s biggest dreams.