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Buying my first home after I retire

I will be retiring in 9 month and will be buying my first home. Does it make sense to apply now while Im employed or after when Im retired? by jbryan425 from Bakers Mills, New York. Aug 6th 2020 Reply


Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,236 contributions

Absolutely there are many reasons to buy now. Rates have NEVER been lower. While employed, you will likely qualify more easily for the home you want. Because underwriters use a percentage of your 'Gross' income to qualify, not your 'Net' income, the more income you have the easier it is to qualify for the payment. Here's an example. Underwriters typically use 50% of a person's gross income to qualify for approval. As an example You have job that pays, say $4,500 per month. From that they have income taxes, SS taxes, Medical premiums, and more deducted. They walk home with about $3000-$3,500 NET pay each month. They retire... Social Security pays them $2,900 per month and they move onto Medicare. They pull about $500 per month from their IRA or 401k and still have more money to spend than they did when working. BUT... now instead of having $2,250 per month for all their debt servicing, they only have $1,450. Depending on their debt, thy may not qualify as easily. Talk to a local Mortgage Broker to more advice about your exact circumstances. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.

Aug 9th 2020
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