Home Loan EMI: If you are taking a home loan at the age of 45, keep these 5 things in mind, you will not face any problem later..
Home loan: Do you want to fulfill your dream of owning a house after the age of 45? Many people may feel that they will have to face difficulty in getting a home loan at this stage of life. But there are five special things by paying attention to which you can easily get a loan and can also pay EMI comfortably. Let's know about them in detail-
These 5 secrets will make your home loan journey easy-
Focus on credit score-
If you are planning to take a home loan, then you should focus on improving your credit score.
If you are planning to take a home loan, it is important to focus on improving your credit score. A credit score is an important factor in home loan approval. Especially for borrowers above the age of 45, lenders do a thorough check of your credit history. A good credit score increases the chances of getting better interest rates and loan terms.
Keep your credit score above 750. To improve your credit score, pay all credit card bills and EMIs of other loans on time. If there are any errors in your credit report, get them corrected immediately. If your credit score is better, you will get a loan at a lower interest rate, which can also reduce your EMI.
Stable income is important-
Banks assess your stable income before giving a loan, whether you are a job holder or a businessman. Your regular income ensures that you can repay the loan EMI. If your income is unstable, consider including a co-applicant like a spouse or children to increase the chances of loan approval. Financial institutions want to ensure that the person taking the loan can make the payment on time.
Choice of loan tenure and EMI-
If you apply for a home loan at an older age, then care should be taken that you do not choose a loan of a longer duration. Because if you take a loan for a longer period, then your loan request may be rejected by the banks. Choosing a loan with a shorter tenure can reduce the interest burden.
Reduce the loan amount by increasing the down payment amount-
At the age of 45, lenders can offer a lower loan-to-value (LTV) ratio. You may have to make a down payment of 20-30% of the property price. So make as much down payment as possible. Increasing the down payment will reduce the loan amount, which will reduce both interest and EMI. For this, you can also use your savings, AFD, or other investments.
Compare home loan interest rates-
Before taking a loan, compare the interest rates of different banks. Some banks offer special schemes for people above 45 years of age, which take into account the post-retirement income. Check the schemes of government banks, as their interest rates may be lower.
Taking home loan insurance after the age of 45 can be a smart move. It assures the lender that the loan will be repaid in case of any untoward incident.
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