Buying a home at any age is one of the biggest investments a person can make. It can be a complicated process and there may be some added hurdles for seniors, but with the guidance of knowledgeable professionals like Mark and Kirsten of this blog, it can be a great choice.
Get your finances in order
Unless you plan to buy your new home with cash you will need adequate funds for a down payment and monthly mortgage payments as well as ongoing maintenance and property taxes. Consider consulting with a financial advisor to get an impartial opinion on how much you should invest. You may want to sell your family home which may be much larger than you need. Funds from that sale can help you to pay for your new property. If you’re in an area with lots of banks, financial institutions, and Morgage companies the competition among them is in your favor, which might help to qualify for a mortgage or loan.
Mortgages
A mortgage is a loan used to pay for buying or maintaining real estate. Mortgageloan.com notes that there are several kinds of mortgages, and it pays to become familiar with them. In a general way, a fixed-rate mortgage is preferable as opposed to an ARM (adjustable rate mortgage) which initially begins at a lower rate but can change.
Finding the right property
There are several things to consider when selecting a new home. As a senior, you’ll want your place to be easily accessible. If you prefer to avoid stairs or the upkeep of a large yard or need specific features like a walk-in shower/tub it might be helpful to begin a list as you navigate through this process. You might want to be near public transportation or a local shopping area. Another consideration is working with an experienced professional that knows the neighborhoods and the market. If you’re considering Santa Barbara Mark and Kirsten can help you identify potential properties that meet your criteria.
First Time Buyers
If you’re a first-time buyer education is key. It’s been suggested that any home buyer should plan on staying in their new home for at least five years to make the costs of moving and buying worthwhile. But, as you know, life’s not always that simple and people buy homes for a variety of reasons. If you’re considering purchasing a condominium/townhouse or single-family detached home in a homeowner’s association be sure to factor the monthly fees into your budget. In some areas, these can be as high as paying rent would be!
Talk with your financial advisor about what you can reasonably afford, whether you’ll make a downpayment followed by monthly mortgage payments, or pay cash upfront. Once you’ve made these choices it’s time to get pre-approved for a loan. The financial institution will be looking at your credit score, income and assets, debt to income ratio, and other factors to determine what’s the best mortgage for you.
Enjoy the search
Once you’ve gotten pre-approved for a loan or worked with a financial advisor to establish your
budget, you’re ready to house hunt.
Age doesn’t have to be a barrier
Lenders and Sellers cannot legally discriminate against you because of your age, but both will want proof of your ability to follow through on the commitment you’re making. There are federal, state, and local programs that help seniors with loans for down payments on homes. If you or a family member is a veteran you may qualify for a VA loan which requires no down payment and oftentimes a more competitive interest rate.
Although home buying for seniors may seem surprising, sometimes it’s not only possible but a great idea! Once you’ve chosen your team of professionals they’ll be your advisors and advocate who’ll help make this venture a successful one.
The author for this post is Theresa McArthur
TheresaMcArthur@guidesforseniors.com
