This step ties into the first step. Part of knowing what you can afford and being financially prepared includes knowing whether you are pre-approved for a loan. A lot of seniors, or longtime homeowners who are nearing retirement, make the mistake of assuming they no longer qualify for a loan based on their age. This could not be further from the truth. Many banks, and other lending agencies, will absolutely offer mortgage loans to prospective buyers, regardless of age, as long as they meet the other qualifications required of all buyers. It’s also a mistake to assume that just because you’re a seasoned, longtime homeowner who will be moving from a bigger home into a smaller one you’ll be able to afford it all on your own. While it’s a possibility that you stand to make a profit from the size of your current home, and enjoy a sizable cash flow into your retirement years, you still need to make sure you qualify for a loan, if you do not have the funds to purchase in all cash, before moving forward in the home-buying process. It’s generally a good idea to know your limits and stay on track so you don’t get into any financial trouble. So be smart throughout the process. Keep your emotions and temptations at bay, and do your best to make practical decisions based on your budget and overall situation.
Step #3: Hire an Agent
You’ve probably noticed that we’ve brought this up a number of times throughout this book so far, but we need to include it as one of the steps in the home-buying process. A bit later on in the book, in Part 18, we will go into more detail and reasons why hiring a real estate agent is important and beneficial to you, but we will present an overview here.
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