Are you nearing your retirement age? You need to realize the importance of buying a home while you are still employed. Or are you looking to leave your company in the next five to 10 years? Then you seriously need to consider securing a retirement home right now, especially if you are looking to apply for a mortgage.
Here are a few reasons why you should get a retirement home as you approach retirement:
Approval is easier
When you are still employed, you will have a much easier time getting approved for a mortgage. This is because lenders will check your debt-to-income ratio. This ratio will likely be lower when you are still employed. If you have a steady flow of income, lenders will be more confident in approving your loan application.
More money for renovations
Moreover, you will also have more cash flow that you can use for home renovations. This, of course, is applicable if you are not building your retirement home from the ground, up.
Since you are still working full time, you are still protected financially especially when you discover major issues in the retirement home that you are looking to purchase. You will have more financial breathing room to fix these issues.
You can pay your mortgage ahead of time
Since your ideal goal is to be debt-free once you hit retirement, buying a home before you retire allows you to kick-off the payments for your mortgage. You will also have the opportunity to arrange terms that will accelerate your payments.
Have better control of your long-term plans
Since you are not yet retired, you still do not have a clear idea of how much your living expenses will be once you reach retirement age. This involves the budget that you need to set aside for your housing needs. Buying a retirement home will give you a glimpse of how much your monthly expense will be.
Increase your financial portfolio
Lastly, buying a retirement home now will help you expand your financial portfolio. This is important especially if you are capable of covering for two mortgages at the same time. Consider Oahu real estate while retiring and contact realtor hawaii Anne Hogan Perry.
Furthermore, you will get to enjoy tax benefits if you own rental property. But this will depend on the structure of your loan. There are options where you can deduct property tax, depreciation, and operating expenses. You can also bring down the mortgage interest, as well as the expense for repairs, among others. To get a better idea of the picture, check the guidelines set by the IRS.