Times-Call (Longmont)

Wondering if you’re too old to buy a home?

- BY DUANE DUGGAN Realtor and Author RE/MAX of Boulder

Many baby boomers never bought a home in their younger years and some baby boomers lost their home in the 2007 to 2012 recession. Baby boomers were born between 1944 and 1964, making them between 57 and 77 years old this year. In the U.S., there are currently 76 million baby boomers. Many of those baby boomers are now in their retirement years and are asking, “Am I too old to buy a home?”

There are certainly few things in life we’re too old to do, like playing in the NFL. However, when it comes to buying a home, you’re never too old. In fact, the National Associatio­n of Realtors (NAR) says that about 25% of first-time homebuyers are over 52 years of age.

One myth that prevents seniors from buying in later years is that they think they are too old to qualify for a mortgage. However, under the Equal Credit Opportunit­y Act, lenders cannot discrimina­te against borrowers based on age. Any borrower, regardless of age, needs to show they have good credit, an acceptable level of debt, and enough income to repay the mortgage on a monthly basis.

Now that we have establishe­d that you are never too old to be a home buyer, there are a few things to consider if the decision to buy a home is the right decision for you:

Consider your finances

If you are applying for a mortgage, the main thing you need to consider is whether or not your cash flow will be able to meet the monthly payments in the long term. Consider if you could afford the payments if any life-changing event occurs, such as the loss of a spouse. If you are still working, will you be able to afford the payments once you retire? If you are buying a home with a homeowner’s associatio­n, be sure to check if the likelihood of fee increases could be covered by your budget.

Consider the market

In markets like Boulder County with a proven track record of home appreciati­on, it’s pretty safe to assume that the home you purchase is going to increase in value. If you are looking in a market where values have a history of declining, it may not be such a great idea to be a home buyer.

Consider using a reverse mortgage to buy a home

Homeowners who have built up equity over the years have a wonderful opportunit­y to buy a downsized home and have no payments with a reverse mortgage.

Consider the lifestyle the home offers

Some baby boomers want to travel the world and have a lock-andleave set up. Others want to have room for grandchild­ren to visit on a regular basis. Others are most concerned about nearby recreation­al opportunit­ies like golf courses and access to infrastruc­ture like shopping and medical care. 55+ communitie­s offer many amenities for active seniors to stay fit the rest of their life.

Consider disabled access

Aging in place is the desire of many seniors today. While a particular home may work for your level of physical mobility today, you will need to assess whether the home would still work for you and your family in the event of a disability or other health issues.

Consider the amount of maintenanc­e required

At retirement age, some baby boomers love to garden and do minor home maintenanc­e. Others want nothing to do with that. The trade-off is that the lowest maintenanc­e opportunit­ies will have the highest homeowner associatio­n fees.

Consider access to transporta­tion

At some point in time, everyone will need to stop driving. Access to transporta­tion opportunit­ies to travel to day-to-day activities becomes more critical.

Make a decision

After you consider all the factors involved, you can make a decision about home buying -- just don’t use age as an excuse not to buy a home. It’s never too late!

If you do decide to start the home buying process, be sure to consult a mortgage lender and look for a Realtor® with a Seniors Real Estate Specialist® certificat­ion (SRES®).

Duane Duggan has been a Realtor for RE/MAX of Boulder in Colorado since 1982 and has facilitate­d over 2,500 transactio­ns over his career, the vast majority from repeat and referred clients. He has been awarded two of the highest honors bestowed by RE/MAX Internatio­nal: The Lifetime Achievemen­t Award and the Circle of Legends Award. Living the life of a Realtor and being immersed in real estate led to the inception of his book, Realtor for Life. For questions, e-mail Duanedugga­n@boulderco.com, call 303.441.5611 or visit boulderco.com.

 ??  ?? There are certainly few things in life we’re too old to do. However, when it comes to buying a home, you’re never too old.
There are certainly few things in life we’re too old to do. However, when it comes to buying a home, you’re never too old.
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