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Old 02-13-2015, 02:33 AM
 
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Quote:
Originally Posted by jrkliny View Post
That was my situation. I had an income based solely on dividends so I had to start taking social security. I was actually surprised that my dividends plus social security qualified me for a loan to cover a mortgage on a house that was about ten times my annual income. I would not say that counts as being "tricky." I did have to make a 20% down payment in order to qualify. And for a better rate I decided on 30% but the loan officer told me that was not necessary.
i was surprised to learn that even with the assets to pay cash that banks wanted an income stream that was a bit more consistant.

i was debating whether to pay cash if we buy that co-op or take a mortgage but unless i take early ss i may not have a choice. the other factor is even with a large asset base you have to hope the co-op would approve you too with no " official income " so to speak.

i didn't even consider these issues a problem until i read it happening to others here.
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Old 02-13-2015, 08:51 AM
 
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Mathjak, since you are still working, you should have no problem. Take the mortgage before you retire. Once retired you might not need to start SS. Taxable dividends will also qualify you for a mortgage.
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Old 02-13-2015, 09:33 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by jrkliny View Post
Mathjak, since you are still working, you should have no problem. Take the mortgage before you retire. Once retired you might not need to start SS. Taxable dividends will also qualify you for a mortgage.
I second this, even more so with a Co-op loan. They can be picky, so don't give them alarm. Get the loan while you are showing an income stream. Tomorrow things may change.
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Old 02-13-2015, 10:06 AM
 
71,454 posts, read 71,629,249 times
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Quote:
Originally Posted by jrkliny View Post
Mathjak, since you are still working, you should have no problem. Take the mortgage before you retire. Once retired you might not need to start SS. Taxable dividends will also qualify you for a mortgage.
we won't be ready to do anything until after i retire so i won't be working more than a day or so on a sporadic bases if i do some technical training.

i likely will just pay cash anyway. but it is the co-op approval i will have to look in to..
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Old 02-15-2015, 09:18 AM
 
Location: Central Massachusetts
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I think our plan will be simple. We will sell the current home outright before we move. As the sale goes through rent a place like we did on our last vacation "Home Away" dot com or some other similar where we do not really need to have furnishings for a month or two in the area we are looking to buy. Then pay cash for the new house or get a mortgage which I don't think we really need. We are unique in that we will have income in spite of not working so I know that makes our situation different. But just having the option to take your time and get the right home is good. Also we might be able to time it just right anyway so...
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Old 02-18-2015, 05:47 PM
 
Location: Verde Valley AZ
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Quote:
Originally Posted by AmFest View Post
Interesting information. Do you know if they require a larger down payment because of this? If I were a lender, I don't see how I can justify extending a 30-year mortgage to someone that I know can only work for another few years. Sounds like too much default risk...
I'm 72 and just bought a house this week. My mortgage lender only requires a small down and I'll pay 'about' 3% interest on a 30 year loan. They know, and I know, that I won't live another 30 years but they'll be getting my money as long as I do. Then my kids can pay it or sell it. I still work part time and get a smallish SS check. I also have good credit which counts for a lot. I worried about all that stuff till I finally got 'brave' and went to my bank to talk about it. Things have gone amazingly well, so far.
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Old 02-21-2015, 12:43 PM
 
Location: Near a river
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Quote:
Originally Posted by AZDesertBrat View Post
I'm 72 and just bought a house this week. My mortgage lender only requires a small down and I'll pay 'about' 3% interest on a 30 year loan. They know, and I know, that I won't live another 30 years but they'll be getting my money as long as I do. Then my kids can pay it or sell it. I still work part time and get a smallish SS check. I also have good credit which counts for a lot. I worried about all that stuff till I finally got 'brave' and went to my bank to talk about it. Things have gone amazingly well, so far.
Being your age, did you have to pay "points" on your mortgage?
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Old 02-21-2015, 01:11 PM
 
Location: SW MO
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Quote:
Originally Posted by newenglandgirl View Post
Being your age, did you have to pay "points" on your mortgage?
That would be discrimination.
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Old 02-21-2015, 01:43 PM
 
Location: Dover, DE
1,799 posts, read 3,832,017 times
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Seeing that we are currently going through the mortgage process, my opinion is to get it now while you have a job. It will be much less painful.

I am retired and just started taking SS, DH is working PT at his old job as we live 8 hours away from there and therefore took a paycut of about 75%. We are selling this house and buying one in another state, but we decided to go through the mortgage process just in case this one doesn't close until after the one we have having built. Not only won't they count the equity in this house for the mortgage, but they are also counting the current HOA fees, utilities, and insurance against us for this house as though it was a second home. While we have more than enough between the equity in this house and what we have just in savings to buy the other house outright, they are forcing us to take out a monthly disbursement from our retirement account because our income is "too low" to qualify. They don't care one whit that we are selling this house and will pay off that mortgage as soon as we have money in hand. Financial adviser even asked if we could just take the money and transfer it to one of our investment accounts, but no. Not only do they have to see the written record of the disbursements, they have to see the written record of it also hitting our checking account! Although we are currently living very frugally, we really didn't want to take anything out of our retirement accounts quite yet. Oh....and get this. We have a regular investment account that we wanted to use instead, but since that isn't "real income", it couldn't come from there. It had to come from the regular IRA. So now we have to pay taxes on that money on top of all the closing costs!! Asinine!!!!! And we both have excellent credit scores/histories and never not paid a bill in our lifetimes.

Take it from me.......if you are a honest, hardworking average person you will be pulling out your hair applying for a mortgage. But if you wait until you retire, they will work you over even more. I am desperately hoping that we can close on this one before the new one so that I can tell them where to stick their mortgage and get our money back into the accounts ASAP. Will probably end up putting it into the Roth IRA instead since we were planning on doing that anyhow with some of the regular IRA.
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Old 02-21-2015, 05:21 PM
 
Location: Verde Valley AZ
8,611 posts, read 9,672,539 times
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Quote:
Originally Posted by newenglandgirl View Post
Being your age, did you have to pay "points" on your mortgage?
Not that I know of. I haven't seen anything like that.
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