Top 5 Reasons to Buy Your Retirement Home Before You Retire
If you’re planning to retire within the next five to 10 years, you may be surprised to learn that now may be the best time for you to purchase your retirement home.
Buying the home while you’re still working full-time is easier, particularly if you plan to get a mortgage.
Not convinced? Check out these top 5 reasons you should buy your retirement home before you retire:
It’s easier to get a mortgage. Your debt-to-income ratio will be lower and more favorable which will make it easier for you to qualify for a loan with your mortgage lender. You can also qualify for a larger loan if you apply while you’re still fully employed.
You have more cash for renovations or major repairs. If you decide to make renovations or you discover a major problem with the home that requires repairs, you’ll be grateful that you still have a regular paycheck and cash flow from your full-time job.
Start paying off your mortgage. Get out of debt faster by starting to pay the mortgage off on your retirement home sooner than later.
Improve your long-term budget planning. It might seem difficult to gauge how much you should budget in retirement for your housing expenses; however, if you buy the home now, you’ll have a more realistic idea that you can use to plan your savings and retirement with.
Expand your portfolio. If you can afford to pay two mortgages, you might benefit from purchasing your retirement home now and renting it out for a few years prior to moving in.
Renting the home can also help you retire sooner since its generating extra income.
Once you have considered all of your options and decided that buying your retirement home is the right decision for you, contact a Service First Loan Officer nearest you to get pre-qualified.