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Qualifying For A Loan After Retirement

Tuesday, June 18, 2013 - 7:45 AM
From The NewYork Times:
Retirees trying to obtain a mortgage may find that a pristine credit history and healthy retirement accounts are not enough. Lenders are also looking for a consistent monthly income in line with their usual debt-to-income standards.

[...] ran up against this requirement recently when he applied for a $174,000 loan to finance the purchase of an apartment in the Riverdale section of the Bronx. With brokerage accounts exceeding $1 million, a TransUnion credit score of 822, and the ability to make a 40 percent down payment, [he] didn’t anticipate any problem with qualifying.

“I would have paid cash,” he said, “but the interest rates are so low it didn’t make financial sense to do it. I figured this was going to be as easy as it’s been in the past.”

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A strategy called asset depletion was ultimately used to qualify the applicant. 
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