Getting a mortgage in retirement

ccassaday · ‎10-21-2010

I have a silly question. If you are applying for a mortgage and you retire say the same month. So you won't start getting your monthly income off your retirement account until August 1st. Would that person have to show two months worth of those deposits in order to include that in the monthly income. What does the bank need from the financial advisor? Would they need to know how much your going to be getting a month? What if your pension your getting in a lump sum and the rest of your 401k haven't been put in that account yet. Is a letter from your financial advisor guaranteeing a certain monthly income enough?

JeanLouiseFinch · ‎10-03-2011

@ccassaday wrote:
I have a silly question. If you are applying for a mortgage and you retire say the same month. So you won't start getting your monthly income off your retirement account until August 1st. Would that person have to show two months worth of those deposits in order to include that in the monthly income. What does the bank need from the financial advisor? Would they need to know how much your going to be getting a month? What if your pension your getting in a lump sum and the rest of your 401k haven't been put in that account yet. Is a letter from your financial advisor guaranteeing a certain monthly income enough?

Hardly "a" silly question. It seems you have several questions. These are things you need to be asking someone in the mortgage department of your bank.

bonnielu · ‎03-11-2010

Your bank would be the best source to ask. And I would think lots of things would come into play, as in past financial history.

Nataliesgramma · ‎03-28-2015

Depends on the Bank and if you have been a customer...have savings and checking there....but you need to ask them ASAP.

AuntG · ‎03-09-2010

Who would seriously want to take out a mortgage in retirement? It happened to a pastor I know. His housing was always covered by the church, but once he retired, he decided to build his dream home. At age 85, he still has house payments and property he can no longer maintain.

151949 · ‎03-09-2010

@AuntG wrote:
Who would seriously want to take out a mortgage in retirement? It happened to a pastor I know. His housing was always covered by the church, but once he retired, he decided to build his dream home. At age 85, he still has house payments and property he can no longer maintain.

Some people can afford to pay a mortgage in their retirement, and actually benefit from the tax break.Just because this one person made a foolish mistake doesn't mean it is wrong for everyone. You have to judge by your own income and finances.

151949 · ‎03-09-2010

OP - when we purchased our current home we applied for a mortgage in case our house did not sell, and we only based our income on our SS and pension incomes, which was adequate. Every case is different - I'm sure the lender has explained to your folks exactly what information they will need.

Anonymous · ‎07-14-2017

Moved:

This post has been removed by QVC because it could be considered political

reiki604 · ‎03-09-2010

Since this question is clearly about your parents. why not let them worry about it. They are responsible adults. Why give yourself something else to obsess about. It is out of your control and up to them. There is nothing you can do about it but give yourself aggravation for the sake of being aggravated.

'I refuse to engage in a battle of wits with an unarmed man'.......Unknown

Peaches McPhee · ‎04-19-2010

I think you need to be upfront with the mortgage people and tell them about your pending retirement and your new "income". They will probably ask for statements from your retirement accounts. They will want to see your total assets as well as your pending pension income.

Your financial advisor will never provide a letter guaranteeing any income.

-- pro-aging --

Rochester, New York