4 Things You Need To Do Right Now If You Are Retired and Buying a Home in 2025

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For decades, a common move after retirement was relocating to a new home in a new city — usually to a smaller house in a warmer location. That still happens, though not as much as it used to amid a recent rise in seniors opting to retire in place, per Fannie Mae.

If you’re retired and want to go the traditional route by purchasing a new home in 2025, here are four things you should do right now.

Also see six must-have features to look out for when buying a home in retirement.

Make Sure You Qualify For a Loan

Most seniors depend on a combination of Social Security benefits, 401(k) distributions, IRA distributions and pension checks to fund their retirements. Some of these, however, are considered “finite income sources.” That’s because they represent depreciating assets, according to a blog from Chase.

Because most retirees don’t earn a regular paycheck, most lenders will ask them to prove there’s enough money in their accounts to provide a stable income for at least three years. For this reason, retirees might want to get prequalified for a loan before starting their house search.

Assess Your Financial Situation

Before making any big purchase, it’s important for retirees to determine where they stand financially — not just in terms of retirement income but also in terms of other assets as well as debts.

For example, if a retiree already owns a home and aims to sell it before buying a new one, they should calculate what their net sales gain will be. This will give them an idea of how much money they can put down on their new home — or even if they can pay cash for it.

Retirees should also review their other assets and debts to get a clear picture of their overall finances so they know how much house they can afford.

“The best thing potential homebuyers can do is to model the purchase against their own financial plan,” said Steve Chen, founder and CEO of Boldin, a financial planning platform. To help plan, he recommended retirees use financial tools — like those offered by Boldin, which let retirees compare different scenarios, such as whether to buy in-state or relocate.

Create a Budget

After retirees assess their overall financial situation, the next step is to make a budget that accounts for home costs in addition to everyday expenses. A blog from Compass Mortgage recommended paying special attention to the following items.

• Property taxes: Tax rates can vary significantly, so retirees should research rates in the area they’re buying and account for that in their budget.
• Insurance: Home insurance costs differ depending on location and the type of house. This should also be factored into a retiree’s budget.
• Maintenance: Many older homeowners need to hire others to take care of repair and maintenance work rather than do it themselves, so this could be a significant expense.

Determine What Home Features You’ll Need

Buying a home as a retiree usually requires looking for very specific features. This means they’ll have fewer homes to choose from compared with other buyers, so it’s a good idea to get an early start to find the right home at the right price.

Here are some features that may be especially important to retirees, per McLennan Contracting.

• One level to avoid having to go up and down stairs
• An open floor plan that’s easier to navigate
• An accessible kitchen with lower shelves, cupboards, counters and cabinets

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