How to buy a home in retirement

We all have our own ideal retirement thoughts. One thing for certain is we all want to be financially secure. For some, retirement may be to own a house in their desired location. Did you know that you can still purchase a home in your retirement years?

Unlike a conventional mortgage, a HECM (Home Equity Conversion Mortgage) for purchase loan program could help you buy a home if you are 62 years or older without the required monthly mortgage payments. However, while this reverse mortgage can remove the burden of a monthly mortgage payment, you will be responsible for taxes, insurance and any homeowner’s dues, much like a conventional mortgage.

If you determine that a reverse mortgage is right for you, you still have some big considerations. First, where would you like to purchase a home? Would you prefer to move closer to family, or near the mountains, or close to the beach? These different locations could have a range of home values. What about living in a large metro city versus a more suburban area? In the city you would be closer to cultural attractions, public transportation and quality hospitals. Whereas, the suburbs are quiet and rural but located further away from amenities you may need as you grow older. If you are married, where does your spouse want to live? It’s important that you both agree on the location.

Second, what are your monthly expenses? Before you buy a house, expenses are important to consider. Along with your regular expenses such as food, clothing, utilities, and car payments, for instance, you will have the cost of maintaining the home, landscape care, and insurance. What happens if you have an unexpected home repair such as a roof leak or medical bill? Some seniors choose to move in with their children or other extended members of their family in order to make ends meet in retirement. However, a HECM for purchase loan could help you avoid that and allow you the financial freedom you may want in your retirement years.

A HECM for purchase could allow you the financial freedom you want in your retirement years.
A HECM for purchase could allow you the financial freedom you want in your retirement years.

You’ve decided on location and reviewed your expenses, now what? Determine the type of home you would like to live in. Should it be a smaller home that is easier to maintain? Should it be one level so that you do not have the chore of going up and down the stairs as you grow older? Would you prefer a single-family home, a condo or perhaps a townhouse? What about a home in a retirement community? They are filled with other retirees who may have similar interests and hobbies as you. Many of them offer activities and events for the community members. From exercise classes to movie nights, it all varies depending on the community. Many may also have various appealing amenities such as golf courses, community pools, walking trails, etc.

Once you have made your decisions, it is time to talk with a lender you can trust. Your lender can pre-approve you so that when you and your Realtor® are ready to present your offer to the seller they will know that you are pre-approved and are a serious buyer. This will make your offer to purchase a home much stronger. Don’t let buying a home become overwhelming. Utilize the help of an experienced lender and Realtor® who can walk you through each step and communicate effectively throughout the loan process. A HECM for purchase loan could help fulfill your retirement goals.

If you would like to see if a HECM for purchase loan is right for you, talk to the lending experts at Lenox/WesLend Financial or call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind. 

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