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Old 10-13-2017, 12:31 PM
 
Location: NW Indiana
40,211 posts, read 15,179,596 times
Reputation: 102221

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Quote:
Originally Posted by Tallysmom View Post
Shocking and mean. But I was looking at getting a mortgage in retirement and hearing they don't take into account retirement funds. So you're trying to buy a 200K house, and you have 2 million in retirement funds but a yearly "income" of 30K, and you won't qualify?


Just started researching...
Yes. My financial advisor has told me more than once that if I intend to purchase a different home again in my lifetime I'd better do it before I retire or else I won't be able to get a mortgage loan. My advisor works at my bank and has access to all of my accounts and she knows that I have a nearly perfect credit score. She said my assets will not be considered by a mortgage lender; that they will only look at my current income if I apply for a loan. *sigh*

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Old 10-13-2017, 02:50 PM
 
Location: WA
5,394 posts, read 21,393,457 times
Reputation: 5892
Quote:
Originally Posted by Tallysmom View Post
Shocking and mean. But I was looking at getting a mortgage in retirement and hearing they don't take into account retirement funds. So you're trying to buy a 200K house, and you have 2 million in retirement funds but a yearly "income" of 30K, and you won't qualify?


Just started researching...
A number of us have run into this over the last few years. Few lenders underwrite a mortgage based upon assets they but usually want a higher rate because cannot easily sell it, so most underwrite based upon income.

A simple program from your financial firm that moves money periodically out of your retirement account to your cash account will satisfy the income requirement. Sometimes they want to see it have a history but often just establishment and a couple of months will satisfy them. It may or may not work well in your tax plan.

I setup plan that moved more than enough income and let it run through the application and close of the mortgage and them reduced it to fit my tax/income plan.
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Old 10-13-2017, 05:44 PM
Status: "Re-edit status" (set 16 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,168 posts, read 1,892,872 times
Reputation: 3195
Quote:
Originally Posted by Tallysmom View Post
Shocking and mean. But I was looking at getting a mortgage in retirement and hearing they don't take into account retirement funds. So you're trying to buy a 200K house, and you have 2 million in retirement funds but a yearly "income" of 30K, and you won't qualify?


Just started researching...
It's not that you won't qualify, but you just won't qualify for what you would expect had you a J.O.B.
It's a screwy situation. Hard to believe that in our recent experience that we are a high risk client with 40% down pay to deserve a 4.75% rate .
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Old 10-13-2017, 06:04 PM
Status: "Re-edit status" (set 16 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,168 posts, read 1,892,872 times
Reputation: 3195
^
We tried to get a loan from national BigBank, June-October 2015. We had just received an inheritance and I wanted use inheritance as collateral. Loan was something close to 5% with 30% down. I thought it was the our FICO score slightly under 750 (low credit card limit and don't carry a balance).
We said the heck with you and took the money out of said bank and bought with inheritance cash.
The condo that we bought has nearly 50% appreciation in 24 months, and ROI 7.5%. Primo location .

Wife likes this bank and it does have national presence. I only use this branch to pay my Amazon CC and get coffee and free "sucker" candy. Sometimes a dog biscuit which the "daughter" dog doesn't like.
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Old 10-13-2017, 06:40 PM
 
11,935 posts, read 20,386,478 times
Reputation: 19328
Then it might make sense to buy now, and retire after I’ve paid on the house for a bit. But I don’t like the idea of leaving a house empty and I don’t want to rent it out but we still have some time so I guess I can just sort of think about things.

Sucks anyway.
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Old 10-13-2017, 07:15 PM
 
Location: Planet Woof
3,139 posts, read 3,506,948 times
Reputation: 9889
Guess I will stay in this rental forever!
No mortgage, no credit cards, no car loans, nothing.
Nothing like being "invisible" in society.
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Old 10-13-2017, 07:44 PM
 
Location: Upper Left Hand Corner
2,557 posts, read 953,519 times
Reputation: 4164
Hi HappyDog, That is pretty much what Dave Ramsey says on his wonderful radio show. Except he says to pay everything off including the house, and shows us how. Absolutely terrific guy. Here is the link if anyone is interested. Enjoy (o:

https://www.daveramsey.com/show/home/?snid=show


-----------------------------------------------------
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Old 10-13-2017, 08:00 PM
 
Location: Central IL
15,224 posts, read 8,518,332 times
Reputation: 35622
Quote:
Originally Posted by mlulu23 View Post
"This seems unfair, but it is a fact of life."

It's not only unfair, it is morally wrong!
Businesses don't have to be moral - their only reason to exist is to make money. As long as it is legal to the letter of the law (the spirit of the law / ethics/ morality don't count) they are golden.
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Old 10-13-2017, 08:05 PM
 
Location: Upper Left Hand Corner
2,557 posts, read 953,519 times
Reputation: 4164
Everyone, business or not, should be moral. Goodness, and kindness should be everyone's guidelines. The only reason some are not is because money is their "god" which they serve, and worship. Being moral, and compassionate just gets in their way. And that is a major reason the world is in the mess it is. Pride, and greed.
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Old 10-13-2017, 10:19 PM
 
Location: Planet Woof
3,139 posts, read 3,506,948 times
Reputation: 9889
''The love of money is the root of all evil.'' Yep, so true if you think about it.
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