Can I Get Home Loan for Buying Old House?

When I decided to buy a home for my family, I realised that there are two choices available to prospective home buyers. I knew I could either choose to purchase a newly built home or an older home that is being sold for a good price. To me, an old house up for sale appealed more because I did not have much time and I did not want to wait until a house under construction was finished before moving in. And I knew that the property was in a good location and that I would get a good return on it in future. But what I was not quite sure about was the process of getting a home loan for old house. I asked a friend of mine who works in a bank and he explained the process to me.

Home loan on old property

Similar to new homes, resale homes are readily eligible for home loans. The resale market has its own advantages, such as the availability of flats with ready possession that you may move into right away. These homes may be purchased using the flexible payment plan.

Can I get home loan for buying old house?

Yes, you can. Here are the facts on the eligibility requirements for a home loan for an older home in case you are wondering whether you qualify or not.

Your ability to obtain a home loan for an ancient house may be impacted by a few significant issues. These considerations include the age of the home, its physical condition, and the buyer's age. The length of the loan is also based on the buyer's age. Therefore, the following eligibility considerations are taken into account by the lenders when determining the loan's term:

• The age of the house or how old it is

• The residence's status or physical state

• The borrower's age.

Additionally, the bank or other lending institutions make sure to do a house audit while deciding the terms of the mortgage. This is carried out in order to verify the house's age and physical state. It is carefully assessed that the house's age and condition are as stated and meet their requirements. All of this is necessary to ensure that the house can withstand the duration of the mortgage.

So, the structural engineer goes to the house or property where your loan application has been submitted. The loan application won't proceed till the approval is given. Additionally, the builder makes sure that it aligns with the interests of the lender if you are thinking about purchasing a house that is undergoing renovation and wants to apply for a home loan for that purpose.

When choosing a home loan for an older property, the state or condition of the ancient house is crucial. None of the banks or other lending organisations will give you the loan unless the property you want to buy and are looking for a loan for is not good enough.

Things to remember when getting a home loan for old house

When purchasing a secondhand home, remember the following:

• Verify each property document.

• Have a lawyer review the same.

• Request the account statement that verifies the prior purchase has not left any outstanding fees or penalties.

• Look around the house for any flaws or defects.

How to apply for a home loan for old house?

Following is information on how to apply for a house loan for an older property:

• Complete the loan application.

• Send in all required paperwork and passport-sized photos.

• Submit documentation of your identity, income, and address.

• Await the processing of the loan application.

I believe now you know everything related to home loan for old house.

I would say that it is easier to get a home loan against a newly-built house in comparison to one that’s a resale one. I realised this during the time we applied for a home loan for a resale property around 5 years ago. This is because the lenders first check the condition of the house, and once they are satisfied, only then they sanction the home loan. 

So, what happens is that if the house is in a worn-out condition, or too old, the lender would see this as a risky deal. Hence, from their safety point of view, they first analyse the house you’re looking to buy and then make their decision to approve it or not. If they decide to approve your home loan, they would decide the amount based on the current age of the property, its state and your age as an applicant. 

A lengthy evaluation process is involved here, which has been explained well by Nehal in his response, you can read that for better understanding. 

What is your Checklist for Home Loan for Old House Purchase?

1. Before you finalise the deal for the house, analyse the property well. See if there are any structural issues. If you see anything serious, either cancel the purchase or get it fixed before applying for a loan.

2. Have the property checked by an expert in the field. Also, get all the property documents checked through a lawyer. I had connected with

   NoBroker’s legal services

   for this, and my lawyer Archana Shukla helped me with the process and was vastly experienced. She ensured that the property was free from any existing loan or dues. You should check the same whenever you decide to get a home loan.

3. Once you decide to take a home loan, keep all the documents in place for the application.

This is all about housing loan for old houses. I hope this helps.