People often think of their 401ks, IRA accounts, and retirement funds as these monies locked away that can never be touched. But they're actually your best kept secret to helping you qualify for a loan. Although most financial advisors will tell you never to touch your retirement funds, I am here to tell you that in case of emergency, break open. Simply put, if the choice is between throwing your money away on rent, or taking on a tax deductible mortgage to purchase an appreciable asset which is your home, the choice is clear. Consult your tax advisor, but you may be able to pull out up to $10k of your retirement funds without incurring a tax penalty for the purpose of a down payment. It's even possible to take a loan against your 401k and you pay yourself back the interest. Or maybe you need to show reserves in the bank to help qualify. Retirement funds definitely qualify as reserves so don't be shy about showing them. Here's what you'll need to provide:
* Most recent quarterly statement
* Terms of Withdrawal
Hope that helps. Feel free to contact me if you have any questions at 949.667.2887 or firstname.lastname@example.org.
- Brian Nguyen is a senior loan consultant (NMLS 659743) who learned more about this stuff than he ever intended to. The opinions expressed here are solely his own.
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