Applying for Home Loan in your 40s? Check out these Handy Tips

It is the general belief among Indian families that, owning a house is a sign of stability. However, buying a home is not easy; it is one of the biggest financial commitments you may make in your life.Therefore, a lot of people in India apply for a home loan to be able to fund the purchase of their dream home. Financial advisors suggest that it is best to apply for a loan while you are young so that you have the leverage of time to repay the amount. However, sometimes, people can apply for the loan when they enter the 40s.If you are in your 40s and are looking to apply for a home loan, considering the following tips will come in handy:

• Improve your credit score The credit score is one of the most important things that the lenders consider while sanctioning the home loan application . So, if your credit score is above 700, the lenders will consider you as a safe borrower, and you have a better chance of getting the loan.
• Increase the down-payment amount One of the best ways to reduce the burden of your EMI payments is to pay a higher down payment. As an individual in your 40s, you may have some savings, you can use this amount to pay a higher down payment than the usual percentage. This will not only help you to borrow less but also will help you to lower your EMI.
• Choose the right lender One of the most important things to consider before taking a home loan in India is choosing the right lender. Today, there are many home loan providers in India, and it is paramount that you do your research about them and choose a lender who offers you the best deal in terms of lower interest, the flexibility of tenure, lower processing fees, prepayment charges. Do a holistic comparison of different lenders before choosing one.
• Apply for a joint loan Applying for a home loan with a co-borrower be it your spouse or one of your children will not only help you get a higher loan, but it will also reduce the burden of the EMIs. Additionally, you can get a higher collective tax deduction. As you are in your 40s, the lenders may consider you a risky borrower, and they may look for an additional source of income, which can help you repay the loan. Therefore, applying for a joint loan is beneficial as the liability of the repayment is spread between two people and the lenders have better chances of recovering the amount.

Use the above home loan tips to improve your chances of getting your loan application sanctioned.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.