How to buy your first house at your young age in 2022 – Wordva

Buying a house is every individual’s ambition, and a huge number of youths are finding worth in starting early. Gone are the days when you could start preparing to purchase a house only after getting married and having kids. At today, with the simple availability of home loans from hundreds of home loan providers in India, persons in their 20’s may own at least a small property instead of renting.Home purchasing at a young age offers various advantages.

You are saved from spending big sums on property rent, and you obtain great returns due to appreciation when you decide to resell it. If you currently have a property, you can acquire another house and rent it out to enhance your income and pay your EMIs with it. That being stated, follow these guidelines that might help you buy a property at an early age.

You should start earning as soon as feasible in your life. Once you accomplish so, you may apply for a credit card and be regular with its payments to develop credit and attain a good credit score. Once you obtain a score of 725 or above, you can apply for a house loan assuming you match the lender’s other eligibility standards.


Where do you spend most of your income? On rent, meals, entertainment, groceries, shopping? Analyse your costs and find where you are spending money unnecessarily. In the contemporary digital age, you do not need to accomplish this manually on paper. You will discover several applications that you may download on your smartphone and use to create a budget. Compare your income and spending, log your expenditures, and cut down on unnecessary ones to save for your down payment.

Simply saving money in your bank account will not generate adequate rewards. You must consider investing your money in locations where your money can increase. For instance, the interest rate given on a savings account is lower than a fixed deposit, a recurring deposit pays you even more interest, and mutual funds give even more. Some investing alternatives could be dangerous. So, consider the risk element and invest wisely.


In addition to the down payment and a few months’ EMIs, you also need to save some money for various charges associated in house loan processing. These include stamp duty, registration cost, brokerage costs, insurance, legal expenses, paperwork charges, and others. Talk to your lender and acquire an estimate of these charges so that you can plan adequate finances for them.


Apart from picking the ideal property you have envisioned, you also need to compare home loan companies and select the most acceptable one. Many customers seek for a lender providing them the lowest home loan interest rate. However, remember, the interest rate is not the only consideration to choosing a house loan lender. You must evaluate the lenders based on various additional aspects, including the loan amount, payback period, eligibility restrictions, paperwork requirements, customer service, and others. Comparing these elements will help you pick the ideal lender according to your requirements, expectations, and budget.


Financial management is key to make your dream house affordable. When you apply for a house loan, you will need to pay a set percentage of the property’s price from your funds, and the remainder of the price will be covered by the lender. The larger the down payment you make, the smaller the loan amount you will need to accept. Eventually, you will save a lot on the interest outgo and loan duration. So, start cost-cutting, reduce debt, and minimize excessive spending to create cash for your down payment.


Give attention to the details while picking the house you wish to buy. Whether you are searching for a condo, independent house, or an apartment, analyze your family’s demands and select a property that can fill them. Avoid buying a property with facilities that you will infrequently use, such a clubhouse, gym, or swimming pool. Give attention to its position, if it is in the downtown or the outskirts? All these elements might make a considerable difference in its cost. So, you need to make a budget according to your payback ability and pick a residence you can afford.

A house loan is a long-term commitment that will devour a big part of your monthly income for several years to come. Apart from making a substantial down payment, you must build finances to have EMIs ready for a few months. If at any point you find it difficult to pay your EMIs, you may rely on this money to pay them without defaulting.

A excellent credit score of 725 or above not only enhances your home loan eligibility but also boosts your chances of acquiring a greater loan amount at cheaper interest rates. Check your credit score and make sure that it matches your lender’s minimum criteria. If it is low, enhance it by paying your payments on time, decreasing your DTI and credit usage ratios, diversifying your credit portfolio, and keeping old accounts to lengthen your credit history.


You need to devote attention not just to the interest rate but also to the interest kind. Your lender can be giving a house loan either at a fluctuating interest rate or a fixed one. Some lenders like Clix Capital also allow you to pick a combination of both interest kinds. In this form of agreement, your interest rate remains set for the first 2-3 years and then turns into floating for the balance of the loan period. You can pick the interest kind according to the market projections and your risk-taking capacity.

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