What you need to know when preparing for retirement and keep your home plans from derailing.
You have no idea how many times we have had buyers’ retirement plans derailed because they made one of these costly mistakes. STOP! Think. And, do not do any of these things as you’re getting ready to retire:
- Co-sign a car loan for one of their children. I had a client a few years ago who retired from a wonderful career, with a healthy pension, but then he co-signed for a spiffy new car for each of his three children! That was great for his children, but it meant that he could not qualify for a mortgage on his retirement home! The bank assumed that he would end up responsible for the payments.
- Co-sign a mortgage for a child or grandchild to help them buy a home! Take care of yourself first and only after you have purchased your retirement home, help that child, if you can.
- Add an authorized user to one of your credit cards. This action can negatively affect your credit score if it puts you closer to your credit limit. Be aware, delinquencies, if any occur, will show up on your credit report.
One of my agents tells his Buyer clients not to do anything, period, until after they have moved into their new retirement home.
- Don’t retire until talking with your accountant about your plans.
- Don’t open a new credit account.
- Don’t buy anything, except for the normal daily things you need.
What are the top three things you should do to prepare for your retirement?
- Consider buying your retirement home now while you are still employed. Get an 80 or 90% mortgage at today’s ridiculously low-interest rates. You probably qualify for more on your current income than you might get based on your pension income.
- Find out if you can work remotely some or all of the time. If you can, why not move now, before you retire?
- Take advantage of a hot real estate market and sell your current home now. Go back to #1 and buy your retirement home. If you need an interim solution, you can always rent something near your work or in the area where you plan to retire.
It takes a plan to make your retirement dream come true. Then, you can become popular grandparents and philanthropists!
Active Adults Realty specializes in understanding the interests and needs of Boomers who want to make their home in Delaware. Give us a call today to discuss how we can help you prepare for retirement in the home you deserve and have dreamed of.