How to Handle Buying a Home in Retirement

“Is it better to try to sell my house fast now and then buy a property, or is it better to try and buy a property now only to sell the current house I’m living on later once I’m retired?”


That is the question that we’re going to try and answer today. 


As you near retirement age, you’ve no doubt earned yourself what’s known as the “old people credit score”, where you have a near-perfect credit score in the high 800s. Paired with the fact that you might find yourself with a huge chunk of cash by the time you retire, and it’s quite tempting to spend it on something expensive, like real estate. 


Which brings us the question, should you buy now and sell later, or try to sell first and then buy a property?

Why Buying Before Retiring is a Good Choice

Buying before retiring is a good choice if your finances are stable. Why? Because once you’ve retired, you’ll lose your biggest leverage of them all — your job. 


Your job, especially if you’ve held it for years if not decades, is your biggest asset when applying for a mortgage. This is especially true once you’ve already paid for your previous mortgage. It signals that you have the capacity to pay. On the other hand, qualifying for a loan after retiring will require you to prove that you are financially stable. This can be difficult to prove if you’re relying on investments and pensions, as well as Social Security. 


Not to mention, buying properties once you’ve retired means that you’ll have to put in a much higher down payment to get a loan. That is not an ideal situation. 

When Is Buying Before Retiring a Bad Choice?

While buying before retiring is a good choice, it’s not always the ideal one. For example, even if you have a good credit score, that doesn’t mean that you can take the financial hit of owning two properties at once. 


Remember, buying before retiring means that you’ll essentially be paying for two mortgages at the same time. Unless you’ve already paid off your previous mortgage, that can take a huge toll on your finances. 


This is why we recommend buying a new property before retiring only IF and WHEN you can afford to pay for both real estate properties for at least a year without struggling financially. 


If you can do that, then, by all means, start looking for a new retirement home. 

Why You Should Sell First Before Buying

If you do decide to buy a new property before retiring, we do recommend that you try to close the deal on your current property first before looking for your ideal home. This is because, since you are financially stable already, the worst thing that can happen to you is that you’ll have to move into a rental in case your current property is sold before you can find a new one. 


Even if it takes you a while to find a new home for your retirement, you’ll at the very least have cash on hand. This gives you a whole bunch of options, especially if you are financially prudent.

Talk to a Mortgage Broker Today

Regardless of whatever it is that you’ve decided to do, what we recommend is that you should talk to a mortgage broker. 


A mortgage broker or lender or your local credit union can help you go over your current financial situation, as well as guide you on what it might look like once you retire. They are the ones best qualified to tell you if you are better off applying for a mortgage right now while you still haven’t retired, or once you have already retired. 


This information is important and should come into play when deciding between selling your home right now or waiting for retirement. 


Speaking of selling your home, you should consider talking to a cash buyer as well. If you’ve already found a property to move into, working with a cash buyer can allow you to have the money to pay a sizable down payment on your new home in as little as a month. This way, you’ll have eased the transition of going from your old home to your new one on your finances, helping you save a lot of money in the long run. 


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Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or more
15:13 02 Aug 21
Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Vishrut Patel
Vishrut Patel
23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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