I had a client call me yesterday who got declined for a mortgage because they’re recently retired and they haven’t started any retirement income that they can show. So let me explain something to you. The standard is most lenders are looking for two years of an IRA distribution for income. If you have money in an IRA or they’re looking for two years of dividend and interest income.
Our industry is so archaic that you don’t even need that. People think they do, but they don’t. Here’s the reality. You can have an IRA distribution for one month and qualify for a mortgage. You don’t need any months of dividend and interest income. If you have the asset, if you have the investment account, we can do something called asset depletion, which is a calculation as if that money was going to become income.
Don’t believe what you read on the Internet and don’t believe what some lenders are even telling you. If you’re recently retired and you haven’t started your retirement income. There are solutions to any questions about how this may impact you. Reach out to me any time. Thanks.