Posted by Matiah Fischer on Thursday, February 24, 2022 at 7:00 AM By Matiah Fischer / February 24, 2022 Comment
It’s never too late to buy the house of your dreams! Here are a few things you should know if you are looking to buy a house after 60.
Buying a Home After Age 60
Some people consider buying a smaller house for sale in Summerlin (or elsewhere) to accommodate their adventurous lifestyles after retirement. Knowing you want to make the most of your retirement after 60, you should look at your finances and ensure you have enough savings to buy a house and do everything you want in your golden years.
Taking Out a Mortgage After 60
Buying a house after 60 is a big financial decision that could impact the remainder of your retirement. Thanks to the Equal Credit Opportunity Act, there is no age limit to taking out a mortgage. As long as you can meet the financial requirements, you’re allowed to take out a loan at any time.
To take out a mortgage over 60 you will need to be able to prove your ability to repay the loan. The first thing your lender will do is check your income. As someone who is 60+ or retired, proof of a steady income will improve your chances of being able to take out a loan. This can include social security or retirement payment plans you have in place.
Secondly, your lender will check your credit score as well as any outstanding debts you may have. A good credit score will make a huge difference to lenders, so it's a good idea to have everything organized to get your mortgage application approved.
What to Consider Before Buying a House After 60
When it comes to buying a home in retirement, you should consider different things than when you bought your first home.
Consider what retirement plans you have in place. Are you wanting to travel? Volunteer? Entertain friends and family during the holidays? Additionally, you’ll want to think about the maintenance of buying a home. Downsizing and flexibility in upkeep may be a better option.
You should also look into the lasting livability before buying a home after 60. If your home has second-story bedrooms, steps at the entryway, or narrow doorways, it may become harder to live in as you grow older. That’s why some will consider buying a single-story home. Not all homes will be age-friendly, so it’s important to choose a home that’s a good fit for your retirement and needs.
Is it Smart to Buy a House at 60?
Deciding on the kind of house you want to buy after 60 involves choosing the right location. Thinking about the type of climate you want throughout the year will help you make a better decision on what location is right for you.
Your needs may change as you age, so choosing to buy a home with the proper care facilities around may also be a top priority.
Finally, you may consider looking into an estate plan. Estate planning means making a plan for how you want to divide your assets post-living. This includes your financials and your home. A house can be a significant amount of money, so it’s a good idea to come up with a specific strategy the role of the home plays in your planning.
Do What’s Right for You
Is buying a home after 60 a good idea? Take the time to think through your future needs as well as things you want to do during retirement and this may help you make the decision on whether or not buying a home at the age 60 is right for you.
Related Articles
- Should You Buy or Rent a Home in Retirement?
- Can My Kids Live With Me in a 55+ Community?
- How to Help Your Adult Child Buy a Home
*Disclaimer:This material is provided for information purposes only and is not to be construed as investment or tax advice. Readers are strongly advised to consult with their professional advisors regarding the information herein.
