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62 or Older? 3 Reasons Why a Reverse Mortgage Might Be the Perfect Financial Solution for You Are you and your spouse starting to move into your retirement years? If so, you already know that you are going to need a solid financial plan for when your primary sources of income are no longer bringing money in. If you have invested in your retirement, you might be all set. However, what if your house makes up the majority of your net worth?

Let’s take a quick look at three reasons why a reverse mortgage might be a great way to unlock the equity you’ve built up in your home.

Reason #1: This Is Your Last Home

To qualify for a reverse mortgage, you have to own your home or be very close to paying off any outstanding mortgage debt. A reverse mortgage is money borrowed against the equity in your home, which is considered collateral. So, if staying in this house is your long-term plan, then a reverse mortgage should be a good fit.

Note that it is not impossible to buy a new home or move when you have a reverse mortgage. You simply have to pay the outstanding balance as with any other loan or mortgage product.

Reason #2: You Don’t Plan On Leaving Your House To Anyone

It is important to note that when you or your spouse dies, your reverse mortgage becomes due. In most circumstances, the house is either sold or transferred to cover the outstanding amount of the mortgage. This means that anyone inheriting the house is going to inherit the reverse mortgage as well, leaving them responsible for the outstanding balance.

If you do not have any children, or if they are already financially stable and not in need of an inheritance, you may not have to leave your house to anyone. This makes a reverse mortgage a good source of extra cash.

Reason #3: You Can Afford Taxes And Upkeep

Finally, don’t forget that with a reverse mortgage, you are still responsible for taxes, insurance and maintenance costs. Falling behind on these items can cause your reverse mortgage to become repayable immediately. If you can afford these costs without having to stretch, then you’re in good shape.

If you are looking to make more of your home equity as a financial asset and both you and your spouse are 62 or older, reverse mortgages are an excellent idea. To learn more about these financial products and your options, contact us today. Our professional team of mortgage advisors is happy to show you why a reverse mortgage is a good fit.

Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval Amount Are you making an offer on a new home in a hot housing market? If so, one possibility is that you are going to end up bidding against other buyers who are looking to buy the same home. Unfortunately, in some cases bidding wars are inevitable, and they can be a significant source of stress. Let’s take a look at three ways that you can win a bidding war without having to spend more than you can afford.

Price Is Important, But It’s Not Everything

The first consideration to keep in mind is that price is important, but it isn’t the sole consideration that sellers make when deciding which offer to choose. In fact, for many home sellers, the price is secondary to a variety of other factors.

For example, consider whether or not the sellers need to close quickly. Perhaps they are moving to a new city, or have already bought a new house and are looking to get out of their old one. If you have your mortgage financing pre-approved and your paperwork in order, you can promise a shorter close than other buyers may be able to provide.

Have A Face-To-Face Conversation With The Listing Agent

It’s worth investing the time in a sit-down chat with the seller’s real estate agent to find out what their motivations are. Are they selling for the money, are they moving, are they under pressure or just getting rid of the house to make an upgrade? All are factors that you can use to your advantage in a bidding war.

Another great tip: be sure to find out where the sellers plan to live once they sell their home. If they want to stay in the house, you may be able to buy it and lease it back to them. That’s a difficult offer to refuse.

Be Flexible, But Be Firm

Finally, keep in mind that you will need to be flexible to win a bidding war, but you should remain firm. Don’t bend your offer or terms too much. If you table a great offer and still lose the bidding war, that’s life. You can move on and find another great home to live in.

If you are in a hot real estate market, it’s a good idea to mentally prepare for a bidding war when you submit an offer on a new home. For more insight or to find out how much mortgage financing you qualify for, contact us today. Our professional mortgage team will be happy to meet with you and show you how you can purchase your dream house or condo.

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