Purchasing a home is a good investment option in anyone’s life. You will earn dividend in the form of rent and appreciation of the home value. Tax benefit provided by the government on the home loan turns to be an additional benefit. If you think you have committed a mistake by purchasing a home, there is always an option to resell it with less regret. Home loans are easy to avail in this current lending market and there are means of bridging the gap between human dreams of purchasing a home and financial vacuum created. The best time to go for a home loan is mid of your career. On the flip side, if you are thinking to take a house loan in your 20’s there are some factors to consider.
Factors to Consider While Taking Home Loan In 20’s
Check your priorities
As youngsters, you might have many priorities in life. Check if the need to purchase your home in the early stages of the life is mere pressure or you want to enjoy a sense of belongingness. Purchasing a home is always a good option over renting one because the same rent amount can be afforded for the EMI of the house which makes you an owner of the house over a period time. If you are willing o purchase a house as a sense of security, go for a home loan, however, it is must take into account your affordability into consideration before you make a move.
Apart from your ability to pay out EMI, you should be able to arrange down payment. It is the difference between the loan amount sanctioned by the lender and invoice value of the house. You should plan how you are going for the down payment before you go for the home loan at your 20’s.
Stability of job
Housing loan is a long-term loan which is spread across 10 to 30 years. At 20’s people tend to experiment with their career in 20’s. If you are not happy with your career right now, you may be risking bay taking a home loan now because you will be bound by the EMI that you will pay every month and you will not be able to experiment with your career.
Is it right time get home?
Mid of 20’s is absolutely right time to get a home if you have a stable income that can help you afford EMI because you will enjoy good loan tenure that enables you to repay the home loan comfortably by the age of retirement. However, it is important to take market fluctuations, real estate prices and other scenarios into consideration before deciding the right time to buy a home. apart from that, you should ensure that you have a good credit score and calculate the amount of EMI you can afford to get a loan.