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Smart Tips for Buying a Home After Retirement

Smart Tips for Buying a Home After Retirement – A home is a large investment regardless of the stage of life you are in. If you are hoping to purchase a home after you have officially retired and said goodbye to your career it is a good idea to comb through your financial portfolio and maybe speak with a financial advisor to better assess what size of investment would be best for you.

Once you have created a clear financial picture of your best approach to purchasing a home it is a great idea to find a highly experienced realtor in the location where you hope to move. You want to make sure you find one that is highly knowledgeable about the current operations of buying and selling in the local market and willing to negotiate a winning offer on your next perfect home.

Smart Tips for Buying a Home After Retirement

Is it a good idea to purchase a home, will the return on investment be enough?

Older adults may feel that purchasing a home is too little too late at this stage in life. But if you have the finances to cover a down payment and mortgage payments, as well as keep up with general expenses, including maintenance and property tax, it can be a smart way to invest your money.

One of the most important variables of purchasing a home to consider is how the home will increase or retain its value. This is another reason why it is so smart to find a knowledgeable local buyers’ agent to help you out. They can help you to identify properties in the area that have the best record of retaining or appreciating in value. They can even help to assess homes or other properties that have a better outlook for appreciating in value over a shorter period of time.

The benefit of purchasing a home after retirement

Investment in a home can help the owner to build equity as the mortgage is paid down and the home value increases. Purchasing a home also locks in your monthly housing cost as your mortgage payment will not change over the life of the loan when you have a fixed-rate mortgage. There will be no unexpected rent increases to deal with. Owning a home also allows you to customize the space to fit your exact needs. This is especially helpful should you need to adjust your environment to be more accommodating as physical needs change.

Financing a home after retirement

There’s no age limit for applying for a mortgage home loan but it could be more difficult to qualify for certain types of mortgages. No mortgage lender is allowed to discriminate and deny approval on a loan based upon age, but lenders are required to make sure that a borrower is capable of affording the payments and paying back the loan in a timely manner.

Examining a borrower’s risk based on the ability to repay can make loan approval more difficult for some retirees on a fixed or limited income. Supplying proof of income in retirement can be evaluated differently. Lenders are required to confirm that you have access to funds to be able to make a down payment and sustain monthly mortgage payments. Some assets do not qualify as proof of income if they are your only income source when it comes to a mortgage loan. This can include money from 401(k)s and IRAs.

It is best for all mortgage applicants to shop around for mortgage products that can offer them a reliable and safe loan with the best terms for their personal financial situation.

With some trustworthy experts helping out, purchasing a home after you have retired could be a very smart investment step. It is always best to make sure you talk with a financial advisor that works and specializes in retirement as well as an experienced local buyer’s agent.

For more information on purchasing a home in San Tan Valley and surrounding areas please contact us anytime.

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