Buying a house is something that you should start considering from the moment you have financial stability. Considering investing your income in an estate is one of the best decisions of adult life, but how do you know what the right age is?
On average, people buy their first home in their 30s, an age when their finances are much more organized than during their early working years, when money is still spent on parties, travel, or clothing.
There are those who prefer to wait until they are 40 years old to have sufficient solvency that allows them to apply for a mortgage loan to acquire a home ; however, this depends on the financial and personal cycles of each person.
In this article we will help you define, according to your age and budget, what type of mortgage credit is the one that suits you.
In what moment of your life are you?
Regularly the moments in the life of each person are classified in four great stages that, generally, are governed according to the age, needs, sales and problems.
The first thing you should do is identify which of these stages you belong to in order to determine the type of mortgage credit that suits you.
1. First buyers
The people who are between 25 and 30 years , who are single or newly married, they start thinking about their first home.
People of this age, regularly, already have a job, whether independent or permanent, which is a source of secure income, which they can use for the purchase of a home.
For this stage, singles or newlyweds, generally opt for an apartment or a house with minimum requirements such as a one-bedroom, living-dining room and a bathroom.
The studio apartments or lofts are usually acquired by this type of people and the mortgage credit schemes that work in these homes are 15 to 20 years old.
Generally in this period, people look for a home that they can pay through a modest mortgage that does not compromise their finances with a high risk, since they are just beginning to consolidate their equity.
It is important that you consult in the correct way with the financial company of your choice to make the best decision for planning your future.
The disadvantages in these cases is that you have been working for a short time, so you are still in search of total stability and one of the great advantages is that there are innumerable credit schemes designed for young people that offer facilities when acquiring a mortgage loan.
The key is also that you always have saved at least 20% of the value of the home you want, to reach your goal.
An important tip if you are in this stage is to consider the term, because although the monthly payments of the mortgage are lower according to time, the longer the period, up to double the interest could be generated.
The recommendation is to be very precise when choosing the term in which you plan to pay off the mortgage at 100%.
2. Growing buyers
If you are over 30 years old, you live as a couple and you already have or plan to have children in the short term, it is time to think about a bigger space.
At this stage, homes with more than one room are recommended, so that each member of the family can have their own space.
Regularly at this age you have already had enough years to save enough to be able to acquire a home that meets your current needs, since emotional and work stability allow other credit possibilities.
At this stage it is recommended that you make an effort to provide a good down payment that is between 20 and 30% and that the term does not exceed 15 years so that the rate is lower.
The advantages of applying for mortgages of this kind and at this age is that you already have a credit history that, if it is healthy, can be of great benefit to you, since you can choose good and varied credit conditions.
In addition to that if your income is enough to buy a house or cash department you can maintain your liquidity and attend a business or financial commitments.
This is the ideal age for many, since there are many strengths such as a consolidated and stable salary, a payment history and greater experience for the acquisition and payment of debts, so it is recommended to take advantage of the benefits that this age gives to choose a mortgage loan.
3. Stable buyers
When people are already in their 40s, they look for better located or much more comfortable homes, at this stage the children are already older and looking for their own space, so the dimensions of these houses tend to be larger.
During this age many also think about acquiring rest houses or renting their current houses to acquire new ones.
Normally for this stage, people are ready to contribute down payments equal to or greater than 50% so that the monthly payments and terms are lower due to the payment capacity they have.
The advantage in consolidated buyers is that there is much more certainty in income and greater awareness about saving and personal finances, in addition to the fact that the children are about to finish their studies, so investing in a mortgage loan can be highest.
If you are at this age it is recommended to give a high down payment; the smaller the loan, the less expensive it will be. Check that the term of your mortgage does not exceed 15 years, considering that in that time you will already have 65.
4. Mature buyers
When you have reached 50 years or a little past, you will realize that the house is already too big for you, because your children are probably already out of it and you have empty spaces that you previously thought were insufficient, it is time to re-analyze your needs.
At this stage, many choose to sell their large houses to invest in a smaller property, this gives you the possibility of monetizing an investment from years ago and opting for a house or apartment according to your age.
In these cases, it is recommended that if your home was two-story, you better opt for a one-story house, as it will be increasingly difficult to climb stairs, an apartment or a small house is a very good option. It’s almost like going back to your single or newlywed life, where you only needed space for yourself and your partner.
If you sell your house, you can probably buy a new home for cash or use that money to give a high down payment, so that the payment term is for a very few years and the monthly payments are very low.
Those in this stage face the disadvantage of age when faced with a mortgage loan application; however, many of them usually no longer need it, since they have the ability to make cash payments thanks to their savings.
It is recommended that if you are going to apply for a loan at this stage, it be with a high down payment and with a credit term that ranges from 5 to 10 years so that the remaining time is dedicated to enjoying life and traveling, because you have already worked a lot for making your own heritage.
In institutions like ION Financiera you have the advantage that they give you mortgage credit for home purchase up to 54 years 11 months, with a maximum term of 20 years.