Here is an example of how the banks are probably acting prudently, even though it is easy to see how some would think, "Wow, the guy has a million bucks and the bank won't lend to him??"
http://www.cnbc.com/id/100719396
Income is more important than assets when it comes to evaluating mortgage creditworthiness. $1mm in the bank gets you about $30k/year right now in a conservative (but not "no risk") portfolio. If the bank needed this guy to have an income of $100k and he was getting $60 from investments and Soc Sec, then they were smart to deny him the loan or offer him a smaller amount to borrow.
And the loan officer would be in need of a talking-to for misleading the applicant in the first place--one of the major things that got us into trouble last decade.
An investing and financial strategies blog offered by Gary Partoyan, veteran financial advisor and owner of Potomac Wealth Strategies, LLC.
