Posted on: 31st Aug, 2009 11:19 pm
My wife and I plan to retire, sell our house and build a new one. We will need a mortgage to cover 30% of the new homes value. We have no non-mortgage debt, an 780+ credit score, and substantial pre-tax retirement savings.
If we retire before getting a mortgage approval, our combined SS income will not meet the normal income standards for the mortgage we need.
Will this be a problem, and do I need to keep working until we apply and get a mortgage approval
If we retire before getting a mortgage approval, our combined SS income will not meet the normal income standards for the mortgage we need.
Will this be a problem, and do I need to keep working until we apply and get a mortgage approval
Hi,
It's always good to get approved for a mortgage while you still have a job. Most lenders would like see you employed before they approve your loan application. A steady employment is seen as a permanent source of income and lenders consider employees with adequate work history as creditworthy.
In your situation, you have mentioned that if you retire before getting approved for a mortgage, you and your wife's combined SS income will not be enough to qualify for a loan. Thus, I think you ought to apply for a mortgage while you are still employed.
It's always good to get approved for a mortgage while you still have a job. Most lenders would like see you employed before they approve your loan application. A steady employment is seen as a permanent source of income and lenders consider employees with adequate work history as creditworthy.
In your situation, you have mentioned that if you retire before getting approved for a mortgage, you and your wife's combined SS income will not be enough to qualify for a loan. Thus, I think you ought to apply for a mortgage while you are still employed.
I agree. In addition, if you have no mortgage on your current residence, then I would cash out ALL of the money you need to build the new home. Then, when you sell your current residence, that loan balance would be paid off.
eric's made a good point here; if you follow his advice, i think you'll do well. if, of course, you need a new mortgage for the new home, you'll be wise to do so prior to retirement so as to be sure you'll qualify.
