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, that 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 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. The number one rule when buying is to know and stick to your budget! And don’t forget to take into consideration those “hidden” costs (closing costs, repairs and maintenance, property taxes, condominium fees, homeowners’ association fees, etc.). It’s unfortunately all too common for home buyers, regardless of age or experience, to forget to factor in these costs as part of their budget and what they can afford overall. 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. As a seasoned Realtor®, my job has often been to hold my client's hand through the process. After all, if you've been in your home for 25+ years, you likely not only have a lot of things you've collected but also memories.
Step #5: Create a List of Your Needs vs. Wants
We’ve dedicated an entire chapter to this important concept — making a list of both your needs and your wants when it comes to your ideal next home — but it bears repeating here, as it’s a
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