Smart Guide for Seniors: Turning Home Equity Into Income—Without Monthly Payments Want to stay in your home and tap into its value—without monthly mortgage payments? A reverse mortgage can be a powerful financial tool for homeowners age 62 and up. It lets you convert your home’s equity into cash—without giving up ownership or making monthly payments. But […]
1. Property Disclosures List Known Issues and Past Problems Sellers are required to tell you about anything they know that might affect the home’s value, safety, or functionality. This can include: Roof leaks, foundation cracks, or water damage Termite infestations or mold issues Previous repairs or insurance claims History of flooding or fire It’s their legal obligation to
1. Bigger Down Payment = Smaller Loan and Lower Monthly Payments 1. Bigger Down Payment = Smaller Loan and Lower Monthly Payments When you put more down, you borrow less. That means: Lower monthly mortgage payments Less total interest paid over the life of your loanBetter loan terms in many cases (including lower rates) Even a few extra
1. A Title Search Looks for Hidden Legal or Financial Problems A title search is a deep dive into the property’s history, going through public records to make sure there are no: Liens (unpaid debts attached to the property) Ownership disputes (like missing heirs or divorces) Easements or restrictions that could affect your use of the home It’s handled by a title company or
1. Ask the Seller to Lower the Price If the home appraises for less than what you offered, your lender won’t finance the full purchase amount. One of the first steps is to negotiate with the seller to lower the price to match the appraised value. Sellers often agree—especially if they want to keep the deal alive
1. An Easement Gives Someone Else the Right to Use Your Land An easement is a legal right that allows a third party—like a utility company, neighbor, or city—to use part of your property for a specific purpose. Common types include: Utility easements for power lines, water pipes, or cable access Shared driveways where access must be granted to a neighbor
1. Market Value Is What a Buyer Will Pay Market value is the price your home would likely sell for in today’s market. It’s determined by: Location and neighborhood trends The condition and features of the home Comparable recent sales (comps) Appraisers, real estate agents, and buyers all use market value as the real-time price tag of your
1. A Property Lien Is a Legal Claim for Unpaid Debts Liens are usually placed on a home when the owner owes money they haven’t paid. Common reasons include: Unpaid property taxes Unpaid contractor or repair bills (mechanic’s liens) Delinquent HOA dues Court judgments or legal disputes The lien doesn’t mean you lose the home,
1. A Home Inspection Checks the Condition of the Property A home inspection is your opportunity to dig into the physical condition of the home—and spot any costly issues before you buy. A licensed inspector will review things like: The roof, foundation, plumbing, and electrical systems Heating/cooling systems and appliances Visible signs of damage, leaks, or safety concerns
1. A Deed Transfers Ownership From Seller to Buyer When you close on your home, the deed is what officially passes the property into your name. It’s signed by the seller and typically includes: Your name (as the new owner) A legal description of the property The name of the person or entity transferring it Without a properly executed
1. Expect Rules on What You Can (and Can’t) Change When you buy in a designated historic district, your home’s exterior is often protected by preservation guidelines. That means: No major exterior changes without approval from a local historic commission You may need permits for things like window replacements, paint colors, roofing, or fencing Modernizing interiors? Usually allowed—but still check