Andi Grant's Blog - Everyday Real Estate with a Twist

HOME BUYING NEAR RETIREMENT AGE:  Finish Strong or Finish Wrong!

I've had an influx of seniors calling me or making online inquiries lately as they make the decision on whether or not to use a large portion of their retirement funds to purchase a home "this late in the game."  If they are not downsizing and they are first time home buyers, I ask them have they always wanted a home, what has kept them from getting one up until now, and the basic home buyer questions to make sure they have a realistic idea of what it means to be a home owner.  I find it quite touching to hear their stories.  Some have waited over 40 years to buy their first house and are no less excited and giddy about the process than someone in their 30's.  

RETIREES SHOULD CONSIDER THE FOLLOWING:

1) DEFINE THE MONTHLY MORTGAGE PAYMENT YOU WILL BE MOST COMFORTABLE PAYING WITH YOUR RETIREMENT CHECKS. The very last thing any retiree wants to do is get in over their head at this stage of their life. I tell my retiree clients "Finish Strong or Finsh Wrong." We laugh at the cheesiness of the statement, but they never forget it and it becomes their motto from that point on.   

2) SPEAK TO A REALTOR® WHO KNOWS THE AREA, THE MARKET AND A GREAT LENDING PROFESSIONAL. A Realtor can determine your purchasing needs, your wants, short term and long term and best match you with a recommened lending professional that can help you to accomplish those goals. Realtors for the most part, know which lenders have a proven track record for closing deals on time with as little out-of-pocket costs to their clients. They are able to vet out the over-promisers and for your sake find the ones that are most experienced with obtaining great financing and closing on a loan that is best suited to you and your circumstances. Remember ultimately it is YOUR choice as to whom you will use as your lending professional, so choose wisely.

3) BE COMPLETELY HONEST AND TRUTHFUL WHEN SPEAKING TO THE LENDER.  There are less curveballs thrown into an escrow when the lender completely knows your circumstances. The last thing you want with your good faith deposit on the line is to have a delay with an expensive per diem or worse a loan app turned down because you weren't forthcoming about estranged spouses, back taxes, etc.

Also stand firm on the amount you are most comfortable paying using the retirment monthly payment as your guideline. More times than not, people qualify for much more than what they are actually comfortable paying. Also keep in mind, there will most likely be two different qualifying amounts for a home vs condo because HOA fees have to be factored in to what you can afford to pay per month. Make sure you completely understand what monies will be used, how they will be used and what reserves will be left for unforseen circumstances i.e. medical bills.  Ask questions until you do understand and make sure it's in writing in layman terms. Do not hesitate to have an attorney look over any documentation where language is vague or unclear. 

4) WITH PRE-APPROVAL IN HAND, IMMEDIATELY CALL YOUR REALTOR! Your Realtor can now compile a more precise list of homes for sale in your targeted area to view that you can not only comfortably afford but feel secure retiring in.

If you are thinking about downsizing, relocating or buying in the areas of Los Angeles, Long Beach, Downey, Lakewood, Carson or any of their surrounding cities, do not hesitate to call me at 310-508-4354.

All photos by Andi Grant, Realtor®