While it may be easier for people over 40 to buy a house because they're more established in their careers, they have different financial considerations that must be addressed.
Before making a purchase, they must think about the financial hurdles they will face over the rest of their lives and how they would be impacted by homeownership and debt, says Certified Financial Planner Board of Standards consumer advocate Eleanor Blayney.
A National Association of REALTORS® survey of 8,500 people who bought homes between July 2011 and June 2012 reveals that 36 percent of those between the ages of 33 and 47 and 19 percent of those ages 48 to 57 were first-time buyers.
Older home buyers should keep in mind that lenders will consider their income, assets, credit history, and other such factors — not their age — when writing mortgages. However, those planning to retire within three years will have their projected earnings from Social Security, retirement accounts, investment dividends, and other income sources taken into account; and buyers of all ages are encouraged to repay or significantly lower their monthly payments prior to retirement.
Additionally, they should consider federal and state first-time buyer assistance programs to help them with the down payment and make sure they are prepared for the property taxes, insurance premiums, and maintenance costs that accompany homeownership.