In today's housing market, buying a new home is not a big deal. But when it comes to avail a mortgage loan at the age of 30, things are getting little more interesting. You might be a good renter over past years. Due to some unavoidable issues like student loan, unemployment or changing locations, it was not possible for you to get your own home that time. At the age of 30, you might came to a conclusion that now you have enough funds to finance your dream home. So, you are convinced that this is the perfect time to settle in at a permanent address.
But do not take this thing lightly at all. It's one of the most crucial and biggest investments which you're going to make. So, let's check out few tips, worthy enough to consider before taking a home loan.
1. Gathering knowledge as an expert
Buying your dream home is easy, but gathering sufficient fund for it is quite difficult. You don't need to worry about money if you have saved good amount since your first job till at the age of 30. As a wise borrower, you may get the required fund from your friend or relatives in form of a gift. In both cases you do not have to bear any financial stress in future. But if those resources are not available to you, then you might have to opt for mortgage loan. You might have heard about mortgage from any sources, but do you really know about all it’s terms and conditions? Are you an expert in this subject?
Before signing up for a mortgage you must know about it in detail. You must be aware of the process, associated hidden costs, essential documentation, payment structure, interest rates and many more aspects of mortgage. If you are buying a home for the first time, you must know all about special govt. aided programs to get a better deal.
2. Adopt a conservative nature
The housing crisis teaches us some rude facts. It shows us about the mistakes committed by previous landlords and homeowners. They purchased homes without considering the high price or took loans way more than they could afford. As a result of downward economy, maximum number of those people became jobless. Without a steady income they failed to pay the loans. A huge part of those people filed for bankruptcy and they are still not getting eligible for a new home loan.
You might have a good earning or gathered a huge fund in bank, but you can't predict your future. There might be some economical downfall tomorrow, and you can be jobless too. So, it is not wise to take a that much loan today which you possibly can not pay back tomorrow.
So, what should you do?
Try to take a home loan or mortgage less than your lender have approved. Generally, it is suggested that your monthly payment (including all cost and premiums) should not exceed 28% of your monthly earning.
3. Save your retirement funds
You might think...retirement?? now?? No way!! But actually don't forget you are already 30. You just have 20/30 years more to earn and save, with so much to do in this little time. So, do not engage your retirement funds towards buying the home. You might require the money way before you could imagine. It is the saving for your tomorrow after retirement.
4. Planning for your family
Buying your dream home is a big experience. But be sure you have arranged enough money to buy insurance for your family too. Whether it will be health or life or accidental insurance, you are also bound to sign up for this as a sole earning member of the family.
Make funds for emergencies. Try to pay off non-mortgage debts first so that it will be easier to get new home loan faster.
5. Take care of your house
You are buying a new home, it is a big investment and you'll be paying down money for a long period of time. So, practically, you must also take care of your investment. Pay your attention towards the improvement of your home. If you do not have sufficient time to take care the maintenance, try to settle this problem by renting. Your tenants will be looking the home for you and will inform you about any repair or renovation required.
Getting in your 30s is not a joke. You will have to take various financial and emotional decisions altogether. So, before you sign up for a home loan, make sure at this time you and your family are ready for it.