Buy in TV now or after I retire?

Closed Thread
Thread Tools
  #1  
Old 12-24-2019, 06:53 PM
kpd3062's Avatar
kpd3062 kpd3062 is offline
Senior Member
Join Date: Aug 2017
Location: Texas
Posts: 123
Thanks: 410
Thanked 39 Times in 21 Posts
Default Buy in TV now or after I retire?

We had been planning to buy our home in TV after retiring. Someone recently told me recently that if I wait until after retirement my credit score and hence interest rate on my mortgage will be affected negatively, Even though I will have a pension coming in and money in the bank. I assume if this is correct some of y’all may have experience or knowledge of this. Thanks
Oh yeah, Merry Christmas to all!!

Last edited by kpd3062; 12-24-2019 at 06:55 PM. Reason: Forgot to wish everyone Merry Christmas
  #2  
Old 12-24-2019, 07:07 PM
Dond1959 Dond1959 is offline
Senior Member
Join Date: Jun 2018
Posts: 244
Thanks: 3
Thanked 508 Times in 138 Posts
Default

Quote:
Originally Posted by kpd3062 View Post
We had been planning to buy our home in TV after retiring. Someone recently told me recently that if I wait until after retirement my credit score and hence interest rate on my mortgage will be affected negatively, Even though I will have a pension coming in and money in the bank. I assume if this is correct some of y’all may have experience or knowledge of this. Thanks
Oh yeah, Merry Christmas to all!!
The person who told you your credit score will decline and interest rate will be higher is wrong. A second home will usually have a higher interest rate. It is a personal decision whether to buy now or after retiring. Many buy and rent out until they are ready to move to lock in price but it can be a hassle to manage from far away. Many things to consider but others on here can provide you their experience. Good luck.
  #3  
Old 12-24-2019, 07:10 PM
Two Bills Two Bills is offline
Sage
Join Date: Aug 2016
Posts: 5,620
Thanks: 1,668
Thanked 7,279 Times in 2,480 Posts
Default

I don't think there is any panic to buy until the Village of Miami is for sale!
  #4  
Old 12-24-2019, 07:30 PM
rjm1cc's Avatar
rjm1cc rjm1cc is offline
Soaring Eagle member
Join Date: Apr 2010
Posts: 2,366
Thanks: 237
Thanked 521 Times in 241 Posts
Default

I would buy when you need the home.

HOWEVER

My understanding is that it is harder to get a mortgage the day after you retire than the day before. The reason is if you are employed they project that income even if you plan on retiring. After retiring it is much harder to justify the mortgage.

Thus I think they is a reason to get the mortgage lined up before you retire.
  #5  
Old 12-24-2019, 08:06 PM
eweissenbach's Avatar
eweissenbach eweissenbach is offline
Sage
Join Date: Dec 2009
Location: Smithville (Kansas City) Mo./ LaBelle North
Posts: 4,566
Thanks: 112
Thanked 726 Times in 225 Posts
Send a message via AIM to eweissenbach
Default

I have bought three homes after retiring and gotten mortgages on all three at the best available rates. If you have good credit, ample income and savings you should be just fine after retirement. If you don’t you probably shouldn’t be buying a property.
__________________
Oldcoach Ed
"You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken"

Last edited by eweissenbach; 12-25-2019 at 09:15 AM.
  #6  
Old 12-24-2019, 08:44 PM
ckcapaul ckcapaul is offline
Senior Member
Join Date: Jan 2018
Location: Woodbury
Posts: 131
Thanks: 20
Thanked 68 Times in 37 Posts
Default

We bought 5 years before retiring and rented it seasonally until we retired
  #7  
Old 12-24-2019, 09:07 PM
JerryLBell JerryLBell is offline
Veteran member
Join Date: Jan 2015
Posts: 727
Thanks: 0
Thanked 372 Times in 133 Posts
Default

Prior to retirement and buying here, we were close to having our mortgage paid off on our home. We figured we'd have the house paid off when we retired, sell the house and come here and buy. However, we also figured that would be stressful as we'd either have to buy a house here somehow before we got the money from the sales of our house or we'd have to store everything we owned and live in a hotel in the gap between selling there and buying here. We talked to our bank about it and they brought up the idea of a Home Equity Line Of Credit (HELOC). They loan you a fairly large percentage of the equity in your current home and you can use that money to A) pay off the mortgage on the existing home and B) buy or at least get a large down payment for a new home. The down payment didn't quite cover the cost of the new home we wanted here so we got a small mortgage to cover the balance. So we exchanged a mortgage payment for a HELOC payment and a small mortgage payment (for about the same monthly outgo). We then rented out the house here as a long-term, unfurnished house until we were ready to retire. With tax credits and such, we may even have made a few buck or at least didn't lose much each month and when the time was right for us to retire (and the long-term rental agreement was up), we moved here to the house we had wanted. In that mean time of roughly 18 months, the value of the house (according to Zillow) had gone up by 10% or more. We've been here 3 years and Zillow claims the house is worth about 30% more than what we bought it for. Judging from the sales prices of comparable houses, I think they're pretty accurate on that account. While the values were appreciating where we had lived, they weren't doing so nearly as quickly as they are here in The Villages. So if we'd waited, we'd maybe have gotten a bit more for our house but definitely would have paid more for a comparable house here.

In short, buying before we retired and moved here worked out quite nicely for us. Your mileage may vary.
  #8  
Old 12-25-2019, 04:08 AM
asianthree's Avatar
asianthree asianthree is offline
Sage
Join Date: May 2011
Location: Mallory, Pennacamp, Fernandinia, Duval, Richmond
Posts: 9,086
Thanks: 22
Thanked 3,578 Times in 1,323 Posts
Default

we Bought 7 years before one retired, and use as a vaca home. It was well worth it for us
__________________
Do not worry about things you can not change
  #9  
Old 12-25-2019, 04:33 AM
Toymeister's Avatar
Toymeister Toymeister is offline
Platinum member
Join Date: Sep 2016
Posts: 1,680
Thanks: 343
Thanked 2,335 Times in 729 Posts
Default

No, retirement doesn't impact your credit score. However it will change your income, this in turn impacts your ability to pay a mortgage.

Here is the exact ratio for Fanie Mae mortgages: 36% of pre-tax income on all debt. No more than 33% on mortgage. The percentages used to be 28 and 31 total under pre Clinton underwriting rules.

Most banks use Fannie Mae standards in order to resell the mortgage, while some banks hold the mortgages and don't sell them, typically they use higher underwriting standards. The Developer controlled bank is one of those, they require 25% down not 20 and at higher rates, if yout throughly research rates. This was the case for my recent purchase. Others may have other experiences.

Last edited by Toymeister; 12-25-2019 at 07:44 AM.
  #10  
Old 12-25-2019, 08:15 AM
mamahaffen mamahaffen is offline
Junior Member
Join Date: Oct 2018
Posts: 4
Thanks: 5
Thanked 14 Times in 1 Post
Default

We purchased 7 years before retirement. Rent out seasonally and enjoy the home a few times a year. Everyone has told us we did it the right way. With the houses appreciating, we agree. Some days are harder with 2 mortgages, but when we sell our home up north, the $$ will go to mortgage and we have our retirement home all ready. Worst case scenario, we sell our villages home and have made some $$
  #11  
Old 12-25-2019, 08:19 AM
ts12755 ts12755 is offline
Senior Member
Join Date: Apr 2016
Posts: 230
Thanks: 28
Thanked 304 Times in 111 Posts
Default

When you retire and sell your home pay cash for your village home. You'll be too old for a new mortgage. 50% percent of men die within 3 years of retiring.
  #12  
Old 12-25-2019, 08:47 AM
Rzepecki Rzepecki is offline
Senior Member
Join Date: Sep 2010
Posts: 359
Thanks: 7
Thanked 228 Times in 128 Posts
Default

We retired, sold our house up north, then bought in TV. Checked 3 banks and Citizens First had best rate, 3 5/8 over 20 years. Our credit rate wasn’t affected at all. At 3 5/8, it makes no sense to me not to have a mortgage when I can make more investing my money. The money is there if I need to pay it off.
  #13  
Old 12-25-2019, 08:54 AM
dewilson58's Avatar
dewilson58 dewilson58 is offline
Sage
Join Date: May 2013
Location: South of 466a, if you don't like me.......I live in Orlando.
Posts: 11,503
Thanks: 834
Thanked 9,688 Times in 3,601 Posts
Default

Quote:
Originally Posted by asianthree View Post
we Bought 7 years before one retired, and use as a vaca home. It was well worth it for us



Us too.
I'm not buying into the comment "the second home will have a higher interest rate."




I think the key is, buy when you find the house you love, in the area you want.
__________________
Identifying as Mr. Helpful
  #14  
Old 12-25-2019, 08:59 AM
champion6's Avatar
champion6 champion6 is offline
Sage
Join Date: Jan 2009
Location: Tamarind Grove
Posts: 5,453
Thanks: 13
Thanked 792 Times in 327 Posts
Default

Quote:
Originally Posted by ts12755 View Post
When you retire and sell your home pay cash for your village home. You'll be too old for a new mortgage. 50% percent of men die within 3 years of retiring.
In the United States of America? In the 21st Century? That's an incredible statement to pass off as fact! Please cite your source for this garbage.
  #15  
Old 12-25-2019, 09:10 AM
dewilson58's Avatar
dewilson58 dewilson58 is offline
Sage
Join Date: May 2013
Location: South of 466a, if you don't like me.......I live in Orlando.
Posts: 11,503
Thanks: 834
Thanked 9,688 Times in 3,601 Posts
Default

Quote:
Originally Posted by champion6 View Post
In the United States of America? In the 21st Century? That's an incredible statement to pass off as fact! Please cite your source for this garbage.





sometimes you just have to let the BS flow off your ToTV back.
__________________
Identifying as Mr. Helpful
Closed Thread

Tags
buy, recently, negatively, affected, pension

Thread Tools

You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 08:52 AM.