Buying a house in your twenties is a big achievement. You are straight out of college and many years of employment left, which translates into many years to repay the loan. In your twenties, you also get to select the EMI according to your convenience because lenders have confidence in your repayment capabilities. However, it is advised that you close any other existing loan before you get a home loan. Here are a few things that you need to do before applying for a home loan in your twenties:
Start saving for a down payment
If buying a house is on the cards, then the first thing that you need to do is start saving from the first salary itself. Banks finance 80-90% of your home purchase but the remaining 10-20% has to be borne by you. Therefore, start saving at the earliest as the down-payments are also huge.
Also read what is the right time to prepay your home loan only at Finserv MARKETS
Clear existing debt
In your twenties, when you just start your career, your take-home salary is not so high. So, Banks will scrutinise your application before sanctioning your loan. If you already have an existing loan, your application may be declined. So, it is important that you close all other loans before applying for a home loan. The lender must be sure that you can repay the loan and will not default. This is applicable for credit cards as well.
Check your credit score
A credit score can make or break your loan request. If you have a low credit score, then the chances of your application rejected are very high. But if you have a good credit score reflecting regular and timely repayments then you will easily get the loan. In case, you do not have any credit history at all, you must build one. A person with no credit history shows as NA or NH. So, if you know you will apply for a home loan in the future, get a credit card first to build financial history and then apply for the loan to avoid rejection.
Keep documents ready
Many home loan applications are rejected not because of credit score or income but due to lack of documents. People often tend to neglect that is also as important as other eligibility factors for home loan. While applying, ensure you carry the following documents with you:
Last 6 months bank statement
Last 3 months salary slip
Processing fee cheque
Form 16/ IT Returns
Have a far-sighted approach when you zero in on a property
Before purchasing the house, evaluate many points. Check the locality, the scope of infrastructure and future returns as an investment. Ensure that the property has all the legal documents and s not involved in any dispute. Once you have check all the boxes, go ahead and purchase the property.
Now that you have read about the basic guidelines before buying a home. Make sure you incorporate all of those during your home buying journey and take every measure to prevent any form of application rejection.
If you follow these tips, buying a home will surely be a stress-free experience for you at 20s. Once, you have the finances sorted, the other aspects will fall into place effortlessly. For that reason, applying for a Bajaj Finserv Home loan from Finserv MARKETS is one of the easiest ways to reduce stress while buying a house. By applying for a home loan with Finserv MARKETS, you can enjoy exclusive benefits like minimal documentation, quick approval, complimentary financial report and much more. So apply for a Bajaj Finserv Home loan available on Finserv MARKETS and get one-step closer to owning your dream home!
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs . What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”