Buying That Retirement Home Before You Retire
Posted: Aug 20, 2019
Most pre-retirees intend to change their current residences when they get to their golden years. What most people don’t realize is that there are numerous benefits of purchasing a retirement home long before they retire. Even though there are many things to take care of during your youthful days, if you are financially able, it is good to purchase a retirement home early.
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Here are reasons why you should get the retirement property sooner than later
- It is easier to qualify for a loan
It is easier to qualify for a loan when you are still working as compared to when you retire. Although lenders are not allowed to discriminate customers based on life expectancy, they can deny the customer based on their income. Your income is higher when you are working. So, your debt-to-income ratio is favourable which can enable you to get a bigger mortgage. However, if you wait to buy the house after retiring, you may be limited to smaller mortgage since you’ll be dependent on your retirement savings.
- You will have more money to spruce it up
It is almost impossible to find a house that fit all of your preferences, no matter how hard you look. Since you want the retirement home to be as comfortable as possible, you may need to do major renovations like a kitchen makeover or add a gazebo at the back.
In short, if you want to transform the new house into your dream retirement home, you are going to do some few modifications, which can be costly. If you purchase your retirement while working, you will have more extra cash to add the personal touch.
- Flexibility to handle unplanned expenses
When you live in a house long enough, you will be able to know its creaks, quirks and requirements. In addition, you will be in a better position to know when it needs a new roof or a replacement of the HVAC system. In addition, pricey problems can crop up at any time. It is very easy to take care of such expenses when you are still working. However, if you buy the house after retiring, the expenses can significantly hurt your retirement savings
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