Buying a New Home After Retirement

Buying a new home after retirement can be an exciting way to begin your golden years. However, finding the perfect home in a great community and securing a mortgage after retirement might involve a different process than what you have experienced in the past.

What Are Your Financial Options for Buying a New Home?

Before running out to look at new homes, take a detailed look at your assets and income. Some retirees looking to downsize want to sell their large home and pay cash for a smaller new home to eliminate mortgage payments. That may not be the best approach as it could deplete your cash reserves. If you own your home or have a current mortgage, you should determine the equity available to you should you decide to sell and consider all your options.

There are many mortgage financing options available for retirees that can be discussed with your lender. If you retired more than two years ago, your lender may use your investment assets and a drawdown from retirement or asset-depletion method to determine your income, they can then calculate your debt-to-income ratio for a traditional mortgage.

There are other financing options available to those over 62 years old such as a HECM loan which can eliminate monthly mortgage payments and help preserve your nest egg through retirement.

It's important to remember that whether you get a traditional mortgage, a HECM loan, or pay cash for a new home, there are other expenses to consider. According to research from Zillow, the costs of property taxes, homeowner's insurance, utilities, and home maintenance averages about $780 per month in most areas with higher amounts in some metro areas.

When buying a new home after retirement, make sure you have enough income and financial assets reserved after home expenses to cover all other monthly living expenses as well as any unexpected costs that may arise before beginning your home search so you know what you can afford.

What Is Your Desired Retirement Lifestyle?

According to an AARP survey, three out of four American adults over age 50 would like to stay in their homes through retirement, although many don't think it would be practical. As we age, our housing and community needs change.

A primary bedroom suite on the second floor or having to navigate steps into and out of the home may not work over time for aging adults. It may get too difficult to visit family or attend social functions at some point if it's a long drive away from where you live. If you bought your current house while you still had children living at home who are now on their own, It may be time to "rightsize" for retirement and find a community that better serves your wants and needs.

You may even be dreaming of living in a master-planned community with resort-style amenities, planned activities and events as well as friendly social gatherings within walking distance of your home. Perhaps you would like to have a quiet retreat with a private garden courtyard closer to family. Or you may wish to travel the country, or even the world, in retirement and are considering buying a low-maintenance home in a community offering a lock & leave lifestyle.

Epcon Communities Makes It Simple

Epcon Communities makes it simple to find the home of your dreams in a master-planned community, many with resort-style amenities, in areas across the country. We offer luxury ranch homes with single-level living designed with open floorplans that wrap around a private courtyard for ample natural light and enjoyable outdoor living space.

If you're planning on buying a new home after retirement and are ready to make your lifestyle dreams come true, contact Epcon Communities. We'll help you find the perfect home and community for your lifestyle!