Taking out a mortgage is a big decision and there are many factors that you will need to consider. Age is just one factor but it is an important one because it can influence many other factors when you are deciding. It is good to think whether you are old enough to take on a mortgage by asking yourself a series of questions.
Are you settled?
It is important to start by thinking about whether you are really settled in the area that you plan on buying the home. When we are young we tend to be more likely to uproot and move elsewhere, perhaps with work or because we fancy a different opportunity. Once we have children we are less likely to do this because they will be at school and we will not want to keep moving them to different schools, especially if we have found a good one.
You might feel that you will be happy to stay in a place for a little while and then sell it and get somewhere bigger and better. Although it is something that quite a few people tend to do it does depend on house prices going up so that you are not in negative equity (owing more on your mortgage than the house is worth). This means that it is really important to choose a home that you are sure will not drop in value for some reason and hope that the general house prices do not fall either or else you will end up having to buy a house worth less than the one you are in if you want to move.
Is your income stable?
It is also worth thinking about your income. Although no job is for life these days, it is good to think about whether you feel that you have a secure income. Although you lender will check out your income, they will only want evidence that you have been in the job past your probation period and of what you get paid. However, knowing whether you are likely to remain in the job is also important. Think about whether your company is doing well and whether the position you hold in the company is likely to remain. Imagine what might happen if your department closed down and whether there would be a job for you elsewhere in the company.
Are your responsible with debt?
It is worth thinking about how good you are with debt. Consider previous debt that you have had such as a credit card or overdraft and how good you were at getting it paid back on time. Also think about what you might be like with a mortgage and whether you feel you would be able to make all of the repayments on time. If you have not had debt before you will have to use your imagination and think about how serious an attitude you are likely to have towards paying off the debt.
Are you prepared to commit to debt?
You also need to think about the responsibility that comes with debt. You will need to put paying the monthly amount above most other things. This means that you may have to go without luxuries and things that you normally buy so that you can afford the mortgage repayment. You will also have the stress of having a debt hanging over you for around 25 years and you have to think whether that is something that you will be able to cope with.
Do you understand the additional costs of home ownership?
you need to also think about the other costs of home ownership as well as the mortgage. You will need to pay for life insurance and house insurance as part of your contract with the lender. You will also have to cover the costs of any repairs needed on the property at any time. Insurance will cover some things but general wear and tear and smaller jobs will have to be paid for by you. You will also have to pay to keep the place decorated or do it yourself and keep the garden maintained. These things can take up time as well as money.
If you are happy with being able to do all of these things and take on the responsibility of the mortgage, then you should consider getting one. As long as you are prepared for everything that you will have to do and be financially responsible for then this should help you to make sure that you are ready to get a mortgage whatever age you happen to be. Whether you are young or old it is not really about your age so much as whether you have a stable income and are prepared for the responsibility that comes with being a homeowner.