There are lots of people in India who might have lived their whole life in a rented place. Out of that lot, there might be a few who might want to buy a home of their own with the money and investments they made over these years.
Even in their 50’s, people are trying to buy a property so that they could dwell peacefully in it and pass the same to their children in the future. These people might have the financial capability to do it, but still, they might need a little bit of a help from lenders who are ready to loan.
Given their age, it is hard for them to get a home loan sanctioned in the current scenario. But still there are ways to fulfill their dreams and I experienced it first hand with a neighbor, Mr. Amit in my flats in Pallavaram. Acquiring few points from him, I have put down the tips that you should have in mind if you are in your 50’s and trying to get a home loan.
Analyze your capability first:
Take it in mind and acknowledge the fact that you could retire in the future and you might not be getting the income that you are bringing in at present. The pension that you incur at that time will surely be much lesser than the current income incurred. This should be acknowledged carefully and the banks will do it during the evaluation.
With all this in mind, set a feasible EMI for repayment which does not exceed 40% of the income. To validate the lender that you will repay it somehow, think about having a co-applicant for the loan. Also, mention all your other sources of income to showcase your financial stability to the lender of the loan.
Opt for a heavy down payment:
For someone who is in their 50’s, buying a property by paying a good proportion of the price as down payment is the ideal way to go. To do that, you must have saved that much money with you and as a buffer for unexpected and miscellaneous expenses. By paying a major part of the price as down payment, the EMIs for the repayment will be cut down and the financial obligation in the future will also be less burdensome.
A decent credit score is a must:
To apply and purchase a home in your 50’s, you should have a decent credit score at least passable. To make sure that a good credit score is maintained, ensure that all credit bills are paid on time and the previous loans are repaid and closed. When you have a decent credit score backed with good security, getting a home loan becomes much simpler. For instance, Mrs. Gowri Shankar, who wished to buy a villa in Chennai OMR says that having a well-maintained credit score helped her amazingly to avail a home loan when she was 49 years old.
A good investment portfolio helps:
You might have made small investments over all these years. If you have, then those investments can come in handy to help you get a loan sanctioned. These investments that can help you include provident funds, stock partnerships, fixed deposits in banks and mutual funds. Even after retirement, these investments can bring in income for you and the lenders will be more than happy to take a note of it.