Retirement seems like the perfect time to buy a home. You’ve had your entire career to build up the perfect credit score, you’ve saved and saved for a sizable down payment, and you have your whole retirement fund to pay the mortgage. What could possibly go wrong? Well, according to RealtyPin.com, buying while retired has some extra difficulties that working people don’t usually face. Banks usually like to see some sort of fixed income. Even if you are getting plenty to make payments, you can still be seen as potentially tricky. Here’s how to avoid this major pitfall:
1. Know what to expect Unfortunately, you can’t assume that your credit and savings alone will get your approved for a loan.
2. Analyze your finances Once you retire, your income tends to be fixed. So if you are considering a new mortgage, it’s important to sit down and really analyze how much you can afford, and how much income you can rely on in the next few years
3. Start early Start the mortgage process at least six months in advance before you want to move into a new home. That may seem excessive, but it can easily take that long from start to finish.