What You Should Know About Retirement Income When Applying for a Mortgage

There are 4 major areas a lender will review as part of applying for a mortgage. They are your credit, assets, the property, and your income. When you are a W2 employee it is straightforward on what is required and how to qualify you because you provide your most current month’s paystubs and 2 years of W2s. When you retire your qualifying income is or can be a bit more complex depending on your situation.

There may be different types of retirement income which can be used. The basic sources are a pension, social security, or your retirement accounts. Other lesser prevalent sources are social security survivor benefits and annuity income.

Income from a pension and social security straightforward to document and use. A lot of older people may have accumulated a lot in assets, but they may not have a income stream from them coming in. Sometimes, it may be advisable to put more money down to help qualify.

While it may be a bit trickier and complex to qualify with retirement income your best bet is to speak with a qualified and trusted mortgage professional at Hall Financial to learn more and to be prepared.