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Securing Financing after ER
Old 01-25-2008, 07:51 AM   #1
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Securing Financing after ER

For those who have ER'd, what has been your experience when applying for financing for cars, furniture, etc.?

That is, seeing how your application would show your are unemployed, how do lenders look upon ER'd people?
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Old 01-25-2008, 07:57 AM   #2
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For those who have ER'd, what has been your experience when applying for financing for cars, furniture, etc.?

That is, seeing how your application would show your are unemployed, how do lenders look upon ER'd people?
I'm not unemployed, I'm retired!

I recently took advantage of some very low interest rate financing to buy a car. On the application I listed my occupation as retired and my income at what I expect to pull from savings to live on this year. Didn't seem to be any problem at all.
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Old 01-25-2008, 08:06 AM   #3
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I'm not unemployed, I'm retired!
Of course, my apologies. I hope to join you in about 5-6 mos.

Thanks for the reply.
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Old 01-25-2008, 08:22 AM   #4
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We refinanced our house and a new car with no problems whatsoever.

Also raised our credit limit on our Pentagon credit card.
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Old 01-25-2008, 08:56 AM   #5
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I just buy with cash, same as before ER.
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Old 01-25-2008, 09:10 AM   #6
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Hadn't thought about it yet. No big purchases since retiring.
But I think showing a bank your 401k, IRA, brokerage firm, and bank account info (as well as pension statement) should do. I have found that they have a tendency to give money more readily to people who don't need it.
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Old 01-25-2008, 09:48 AM   #7
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For those who have ER'd, what has been your experience when applying for financing for cars, furniture, etc.?

That is, seeing how your application would show your are unemployed, how do lenders look upon ER'd people?
I've been using a local guy. (Guido Panzini).

Simple rate structure. 9% for collatarized loans. 12% for unsecured loans.

As he mentioned, "That's annual rate". "When I was in "joisey I was getting those rates monthly".

Great guy to deal with. No application required, just verified how long I'd lived at my residence, and also had to verify my childrens addresses. (?).

No problem for me so far.
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Old 01-25-2008, 12:40 PM   #8
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For those who have ER'd, what has been your experience when applying for financing for cars, furniture, etc.?
That is, seeing how your application would show your are unemployed, how do lenders look upon ER'd people?
Keep in mind that we've been getting our "Woo-hoo!" financing from the same sharp-pencil analytical financial geniuses who've brought you the sub-prime crisis. Or should I say "Thank you."

But it's never been a problem. Presumably the assets (or absence of other crippling debt) make up for the lack of paychecks. Their primary concern appeared to be when our check would clear.

Or maybe they figure that we'll feel obligated to get a job to pay back the loan.

Jarhead, how long has the Panzini family been established in your "locale"?
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Old 01-25-2008, 12:46 PM   #9
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Not a problem. We have been "retired" ie., 0 on line 7 of form 1040 for 20 years or so. Purchased about 4 or 5 new cars and always financed them to take advantage of rates below CD rates (then paid them off, from maturing CD's, in about 6-12 months). Just recently asked for and got a 100K HELOC (for possible emergency funds - still 0 balance). Helps, but I doubt it is necessary, to have a long time relationship with a good financial institution.
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Old 01-25-2008, 01:32 PM   #10
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Anyone have experience of being "unemployed" (read: FIRE'd w/ 7 figure portfolio) in their 30's and still being able to secure favorable financing terms. I wonder if there is some age discrimination between a 50 y.o. "retired" guy and a 35 y.o. "unemployed" guy?
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Old 01-25-2008, 05:29 PM   #11
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Anyone have experience of being "unemployed" (read: FIRE'd w/ 7 figure portfolio) in their 30's and still being able to secure favorable financing terms. I wonder if there is some age discrimination between a 50 y.o. "retired" guy and a 35 y.o. "unemployed" guy?
When my ex girlfriend and I bought this home I was 43. She was having a some trouble qualifying for her half of the house, since she still owned a home that she was in the processs of selling. Once I sent them a copy of my brokerage statement which showed asset considerably larger than the loan and agreed to cosign. All of the problems dissappeared! In general banks are just as happy to loan against assets as income.
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Old 01-25-2008, 05:32 PM   #12
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I think a good FICO score helps, too. I get approved for credit all the time even without whipping out my balance sheet.
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