Home > Uncategorized > Mortgage Mistakes to Avoid- Assets are NOT income… let me explain:

Mortgage Mistakes to Avoid- Assets are NOT income… let me explain:


Gone are the days of no income verification loans. Gone are the days of assets only to qualify. Assets are considered assets on your mortgage application. Income is considered monthly receipt of money. The key distinction there is “monthly receipt of money”. Many borrowers assume that if they have retirement assets (they have yet to begin to draw on) they can set up a new monthly draw against those assets and use them to qualify for their home mortgage. Unfortunately unless there is proof of monthly receipt for a minimum of the last 12 months of an INCOME stream from those assets, they cannot be used to income qualify. They will count as assets however assets do not qualify to make monthly mortgage payments- income does.

If you are retired or considering retiring, keep this in mind as it will affect your ability to qualify for your new home mortgage. Remember, we want to see no more than 38% of your gross monthly INCOME going out to your debts. Does your budget currently exceed that? If so, you may want to set up a draw from your asset accounts NOW, in order to show proof of receipt when it comes to qualifying for your next home mortgage.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810 NMLS #162494 AZDFI Loan Officer # LO-0911453

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