Age doesn't matter, as they say. You don't have to have a specific age to be able to do certain things. But, is this also true of real estate, particularly mortgages?
The Equal Credit Opportunity Act says it is illegal to discriminate against someone who wants to borrow money based on age. The Act further explains that one cannot be denied to get a mortgage just because he is too old or too young. In fact, even if you are 18, you're not too young to get a loan, as per Wise Bread. Age factor should not be used to deny a borrower, the source added.
The truth is, if you are financially qualified, whether you are too young or too old to get a mortgage loan shouldn't be a question. After all, age is just a number, at least in real estate.
So, regardless of age, how can one be qualified to get a mortgage? Here are few questions to ask yourself:
Are you qualified to get a mortgage?
Whether you are too old or too young doesn't matter. What matters most is whether your income is sufficient to pay for what you will be borrowing from the bank. Your credit line should be higher to be able to get a loan, Investopedia says.
Can you pay the down payment?
In most cases, down payment is a must in getting mortgage. So you have to make sure you are capable of paying the down payment. If there is a property you need to sell and your down payment comes from that profit, this can be better than not having any source of profit.
Are you settling down?
Getting a mortgage loan is good but it works better if you are in the position to get it, meaning, you are already settling down. Wise Bread suggests you need to be able to hold onto the property long enough, at least seven years, so you can utilize your mortgage loan. However, if you are not after long-term stays but transient, then, getting a mortgage, for example, buying a house, may not be for you, no matter what your age is.
"To me, the age isn't the main factor, ever. Everything has to do with your own personal situation. Can you afford what you are biting off, what you are signing up for with a mortgage? A lot of financial tragedies could be avoided if people would ask whether they can really afford a mortgage loan, no matter what age they are," said Kyle Winkfield, owner of a retirement planning firm in Rockville, Maryland, Winkfield Group.
