friar1610
Thinks s/he gets paid by the post
- Joined
- Jun 27, 2002
- Messages
- 1,641
I'm scratching around collecting information relative to financing another house in a different location as we are thinking about relocating. I'm doing due diligence on various options. I'd appreciate any feedback/experiences from those who have applied for first mortgages on homes after having retired.
My understanding is that it is next to impossible to get a bank/credit union to consider your assets in making a decision on whether or how much to loan. Instead, they are only interested in firm sources of regular income: SS, pensions, annuity payments, etc. Was that your experience? Did you have any success at all in getting assets (or at least the interest/dividends thrown off by assets) considered?
Are there any rules of thumb that could be used to determine how much a bank/credit union would be willing to lend. (I am aware of the rule that says housing costs shouldn't equal more than 28% of income, so one can back into a number that way.) Are there any other rules or generalities that apply?
Any other insights, pitfalls, advice from those who have "been there, done that" would be greatly appreciated.
BTW, I'm not trying to reignite another round of the "pay cash vs. have a mortgage debate. I'll make that decision in due course based on my situation; right now I'm just collecting information and doing comparative calculations. I did look in the FAQ and couldn't find this specific topic but if I've missed anything that's been discussed before, I'm happy just to be referred to previous threads.
Thanks.
My understanding is that it is next to impossible to get a bank/credit union to consider your assets in making a decision on whether or how much to loan. Instead, they are only interested in firm sources of regular income: SS, pensions, annuity payments, etc. Was that your experience? Did you have any success at all in getting assets (or at least the interest/dividends thrown off by assets) considered?
Are there any rules of thumb that could be used to determine how much a bank/credit union would be willing to lend. (I am aware of the rule that says housing costs shouldn't equal more than 28% of income, so one can back into a number that way.) Are there any other rules or generalities that apply?
Any other insights, pitfalls, advice from those who have "been there, done that" would be greatly appreciated.
BTW, I'm not trying to reignite another round of the "pay cash vs. have a mortgage debate. I'll make that decision in due course based on my situation; right now I'm just collecting information and doing comparative calculations. I did look in the FAQ and couldn't find this specific topic but if I've missed anything that's been discussed before, I'm happy just to be referred to previous threads.
Thanks.