Qualifying for rental house when you're retired? (best, problem, Alaska)
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Our mortgage approval process with BB&T was the smoothest and fastest I've ever experienced. I was expecting much worse since the last time I got a mortgage to refinance our old place it took almost 3 months to get approved for a payment lower than what I was already paying.
It's highly recommended to rent when relocating for retirement. You want to make sure that the city/town is a good fit and get to know the different neighborhoods before making a commitment. Making a mistake and having to sell later will cost you a 6% real estate commission and more.
As a person who has made many moves and who does not particularly care for the place you are currently living, this should make perfect sense to you.
I have 3 friends, in the last year, that built homes in retirement areas sell and move to a new location within two years of living in the new area. One was less than a year. Yes, if you can, rent first.
I have 3 friends, in the last year, that built homes in retirement areas sell and move to a new location within two years of living in the new area. One was less than a year. Yes, if you can, rent first.
We lasted a little over a year in Arizona. Had we rented, we would be out over $20,000 in rent alone. As it stands, we will clear almost $30,000 by selling the house we bought and renovated. By any standard, we came out ahead by buying, and not renting.
It's highly recommended to rent when relocating for retirement. You want to make sure that the city/town is a good fit and get to know the different neighborhoods before making a commitment. Making a mistake and having to sell later will cost you a 6% real estate commission and more.
As a person who has made many moves and who does not particularly care for the place you are currently living, this should make perfect sense to you.
The problem is with people with no income. I bet you have SSA and/or a pension, right?
And, you could explain to your landlord, that the standard is to gross-up your income by 25%. If your income is tax-free, then mortgage lenders add 25% to it, to get a gross income figure.
The point is here, not to explain why someone would want to rent, but rather to explain why a landlord can't rent to someone who can't meet their criteria. If the criteria is 3X rent in income, then that's the criteria. And if they change that criteria to "and retirees with no visible means of support, but with cash on hand," then they also have to include anybody else with no visible means of support, but who has cash on hand.
And that's why they can't (or the smart ones won't) rent to a retiree who has tons of cash, but not enough regular income to qualify.
Yet they rent to people who can lose their jobs which is the same to me as losing your money in the market. Landlords could what if themselves down to no renters. Or bankers with mortgage loans.
How many people lose jobs and default? Lots, probably more than have with 401ks. So it just seems like discrimination to me.
We lasted a little over a year in Arizona.
Had we rented, we would be out (excerpted) rent alone.
...we will clear almost $30,000 by selling the house we bought and renovated.
By any standard, we came out ahead by buying, and not renting.
How about the standard of not buying a fixer? And then fixing it?
You know, the retiree type being discussed here...
folks newly arrived to a new city focused on meeting people,
making friends, and getting engaged in what's going on in the new city?
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btw... in addition to the purchase/closing amount:
how much $$ did you lay out on the renovation?
how many of those 400+ days were spent involved in that work?
How about the standard of not buying a fixer? And then fixing it?
You know, the retiree type being discussed here...
folks newly arrived to a new city focused on meeting people,
making friends, and getting engaged in what's going on in the new city?
---
btw... in addition to the purchase/closing amount:
how much $$ did you lay out on the renovation?
how many of those 400+ days were spent involved in that work?
We spent about $20k on the renovation. It wasn't a fixer upper, it was just badly out dated and didn't show well. All the work was done in less than 30 days. We were in a rental for two months and we did get out and get involved in a lot of activities.
Having good credit and showing money management skills might overcome having all the money in a lump sum. But when you think about it, a lot of people blow through an inheritance or accident settlement in less than a year. Do you have evidence of stable savings prior to the sale? I take it you are not collecting SS or a pension yet? Are you eligible for SS? You could bring the paper that comes in the mail every year.
I usually got mortgages from the department of my local bank that makes auto loans. A little higher interest rate, but much less hassle than a sold loan.
Good credit, little debt and THREE TIMES the rent here in Fort Worth/Dallas.
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