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Respected Contributor
Posts: 3,787
Registered: ‎02-20-2017

Re: Getting a mortgage in retirement


@Ccassaday wrote:

I guess my big question will the loan not be able to close until they show those annuity payments on two months bank statements.  Or will a letter stating they start August first and the amount be sufficient.


There are so many factors that come into play - how would anyone here know how your parents set all of this up?   I'm sure they know what they're doing with their retirement and this new house.  If they have a financial advisor who has been guiding them through this process, it should all be taken care of. 

 

Do your parents know how much personal information you reveal here? 

Respected Contributor
Posts: 3,558
Registered: ‎08-29-2010

Re: Getting a mortgage in retirement


Bri36 wrote, in part: ". . . Do your parents know how much personal information you reveal here?"

 

 

@Bri36:

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Strive for respect instead of attention. It lasts longer.
Respected Contributor
Posts: 3,402
Registered: ‎03-10-2010

Re: Getting a mortgage in retirement

@Auntg, We built and acquired a mortgage 2 years after retirement. Our home and yard were too big and utilities were very high. Our home was $148,000.  Our house payment now is $527 with insurance and taxes $757. Our light bill in our bigger home was $300 - $400. We gave 1/3 down and we pay $100 more every month on our mortgage payment. It took getting used to a smaller home but after 1 1/2 years, love it.  

Honored Contributor
Posts: 30,758
Registered: ‎03-09-2010

Re: Getting a mortgage in retirement


@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. 


 

 

my mom did it about 7 years ago. she is fully retired and has her main home and a vacation home. she wanted ANOTHER vacation condo on the river.....to "get away from it all." she put a lump sum down and took out a mortgage for the rest. her financial advisor and cpa agreed that it was a sound investment plus she can use the mortgage interest to offset her tax payments.

 

she can pay it off in full any time she wants to if she decides to do that. it is all a part of her "investment package." real estate in the right place is often a good investment.

"If the camel once gets his nose in the tent, his body will soon follow." - Arab Proverb
Trusted Contributor
Posts: 1,757
Registered: ‎03-14-2010

Re: Getting a mortgage in retirement

The mortgage will go through a process and different departments.  Once it gets to the underwriters, that department will tell you exactly what documents are required. 

Trusted Contributor
Posts: 1,421
Registered: ‎03-12-2010

Re: Getting a mortgage in retirement

One of my best friends is a mortgage processor.  She would become extremely upset if, while processing a mortgage, someone (either single of one of a couple) would change jobs, extremely upset.  It does figure into the process.  It would be a much better idea to get the mortgage and then retire  - totally better!!

Esteemed Contributor
Posts: 6,120
Registered: ‎10-21-2010

Re: Getting a mortgage in retirement


@aggravated wrote:

One of my best friends is a mortgage processor.  She would become extremely upset if, while processing a mortgage, someone (either single of one of a couple) would change jobs, extremely upset.  It does figure into the process.  It would be a much better idea to get the mortgage and then retire  - totally better!!


The loan officer at the credit union is fully aware of the retirement. They talked to him several times before they even decided to start this process. So they new what they could afford to build and the loan officer new of the retirement.