Home loan: Are you 20-30 years old? Are you thinking of buying a new home early in your career at this age? This is no surprise. In today’s time, many people are buying their dream home at the very beginning of their career. You must have seen people in your parents’ generation that they had to wait till retirement to buy a new house. But now the time has changed. Now the salary has increased as compared to earlier and along with it home loan is also available very easily. This means you no longer need to wait till the age of 40 or 50 to buy a house like your parents. If you are 20 years old, have just started working and are planning to buy a home on a home loan, then it is entirely possible, though you need to keep some important things in mind. Here we are telling you some such things.
recognize your potential
The first thing you need to check is whether you are able to pay the monthly installment of your home loan. You have to understand your potential. Generally, banks give you a loan in such a way that your EMI does not exceed a certain percentage of your salary. You are well aware of your regular expenses. You have to understand whether Pre-EMI is better or Full EMI for you. If you have bought an under construction property, you will have to manage both the house rent and the loan EMI. If you have taken an education loan for studies, then its EMI will also have to be paid. Combining all these can put a lot of pressure on you. If a major part of your income goes towards your home loan EMI, you may not have much money left to invest in your other goals. Home loans last for a long period of time i.e. around 15-20 years.
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job stability
If you have a stable job, it can be easy for you to get a home loan. Along with this, if you have a good job, you will not face any problem in repaying the loan. You would never want to lose your job and have a huge loan burden on your head. It is very important for you to have a stable job. Through this you can avoid problems in future.
Must have a good credit score
Your credit score plays an important role in your loan approval process. Having a bad credit score reduces your chances of getting a home loan. The better your credit score, the easier it will be for you to get a home loan. Banks decide whether to give you a home loan or not on the basis of your credit score. Not only this, a good credit score can also bring down the home loan interest rate. That is, if you have a good credit score, your EMI will be less and it will be easier for you to repay the home loan. For this, it is important to have a good credit history. So, if you are planning to take a home loan, and do not have a credit card, you should apply for a credit card. However, you have to be careful while using the credit card and pay all the bills on time. This will improve your credit history.
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guarantor
Considering your loan repayment capacity, you may be asked to hire someone as a guarantor for your home loan. If you have a bad credit score, the bank may think that you will not be able to repay the loan. In such a situation, you may have to take the help of a family member or relative as a guarantor. If you do not repay the loan on time, then all the responsibility falls on the guarantor. Along with this, it also affects the credit score of the guarantor. This is the reason why no one is easily prepared to be a guarantor.
down payment
Even if you are planning to take a home loan, you will still have to pay some amount to the bank as a down payment. The bank will finance only up to 75-80% of the purchase cost of the house. So, if you are planning to buy a home early in your career, it is better to start saving for the down-payment early.
This article does not say whether you should buy a home early in your career or not. Home loan should be considered only if you feel that you can easily accomplish other financial goals with it. According to experts, there is nothing wrong in buying a home early in your career. Through this you at least learn to save and you soon understand the importance of it. If your wife or husband also works or does a job, then both of you can take a loan together. The advantage of this will be that in case of any ups and downs in one’s career, the other can handle the situation.
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