Do my age and occupation matter for a home loan?
Banks/ financial institutions do consider some of the factors when you apply for a home loan and these factors include:- income of the applicant, qualification, credit history score, age of the applicant, etc in fact, age is one of the most critical parameter that matter while appraising home loans.
Whether a salaried individual or a self-employed professional/ non-professional, your home loan tenure depends on your age and income level.
The home loan appraisal problems that applicants deal with at different stages in their lives are different.
Stability of employment is one of the most important aspects that are considered for a home loan. It is important for the salaried loan applicant that he/she must be employed for at least 2 years. Whereas if the applicant is self-employed then he/she must have an experience of more than 5 years for processing of loan application
As long as you are 18 or older, your age won’t lower your chances of qualifying for a mortgage loan. Mortgage lenders are not allowed to use age as a reason to deny your request for a mortgage loan, whether you are 60, 70, 80, or 90. This doesn’t mean, though, that lenders have to provide mortgage financing to you. You’ll still have to prove, despite your age, that you can afford your monthly mortgage payments and that you’re not at a high risk to fall into foreclosure.
You have to show lenders that you can afford your monthly mortgage payments, whether you’re 20 or 80. In general, mortgage lenders want your total monthly debts — including your new estimated mortgage payments — to equal no more than 36 percent of your gross monthly income. They also want your total monthly housing payment, including taxes, insurance, and interest, to consume no more than 28 percent of your gross monthly income. You’ll have a higher chance of getting approved for a mortgage loan, no matter your age, if you can prove to lenders that you fall under these debt-to-income ratios.
Lenders will want to see proof of your gross monthly income when determining your debt-to-income ratios. For many borrowers, a monthly salary makes up the biggest portion of their gross monthly income. That’s usually not the case for borrowers who are in their 70s or 80s. But even if you no longer collect a monthly salary, you can still use any other form of monthly income as proof of your financial health. You can use Social Security payments, income from retirement savings accounts, investment income, pension income, and regular payments from legal settlements, or royalties.
