Whether they are seeking warmer climates, moving closer to family members or downsizing, retirees are a small but important group of potential homebuyers. But because retirees are usually on a fixed income or only working part time, they may need extra help as they look to qualify for a mortgage. Real estate professionals working with clients who are retired can best help them navigate their choices by partnering with an independent mortgage broker, an expert who can walk them through all of their options.
Depending on which income streams your borrower receives, sorting through the qualifications and documentation can be complex. A retiree’s ability to qualify for a mortgage depends on a number of factors, including what kind of income distributions they’re receiving.
And different lenders have different requirements based on those factors, such as whether the retiree’s income includes Social Security, pension and retirement income, Social Security survivor benefits, disability income, IRA, 401k or Keogh retirement distributions – or a combination of any of the above. Also, lenders will typically want to see some type of verification of when the borrower began to receive this income and how long it will last – as well as proof of income and tax-related documents.
This is where a partnership with a local mortgage broker comes in handy. They’re familiar with a much larger variety of loan products and options available to your retired client than a bank or retail lender would be, so they can help them determine what to leverage for loan qualification and what documentation is required. For example, some retirees may have more complex income streams that don’t easily translate for mortgage loan qualification under standard underwriting guidelines, but they may qualify for bank statement and asset depletion programs instead. A mortgage broker can provide the expertise to assist with that.
Retirees have to be mindful of their money when considering their home-buying options. So, whether they’re interested in a traditional mortgage or leveraging their home equity, partnering with a mortgage broker allows real estate professionals to help retired clients make informed decisions about their future. You and your retired homebuyers can find a mortgage broker in your community by visiting FindAMortgageBroker.com