1) Don't accept a long divisor — run 60–360 and take the strongest you qualify for. 2) Provide every statement page. 3) Stack other income on top of assets. The rest are below. See Requirements.
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Calculation mistakes
1. Accepting a long divisor
360 months produces far less income than 60–120. Run them all. Calculator →
2. Forgetting reserves in the math
Not subtracting reserves overstates income — approval shrinks at underwriting.
3. Miscounting asset haircuts
Stocks ~70%, retirement by age — using face value overstates your pool.
4. Ignoring the age advantage
At 59½+ (and 62+ on agency) your retirement counts higher & LTV can rise.
File & documentation mistakes
5. Missing statement pages
Every page of every account — even "intentionally blank." Gaps stall underwriting.
6. Unexplained large deposits
Non-payroll deposits need a paper trail. Document & explain them.
7. Accounts not in your name
Eligible assets must be owned by the borrower; jointly-held needs care.
8. Counting excluded assets
Real estate equity, business assets, crypto don't count — don't bank on them.
Planning mistakes
9. Ignoring the hybrid stack
Add Social Security, pension, dividends — free qualifying income left unused.
10. Taking the first non-QM quote
You're a strong borrower — make specialty investors compete. Rates →
11. Assuming you don't qualify
"$2M in the bank, still denied" is a traditional-lender problem — not yours here. Eligibility →
The Don't / Do checklist
| Don't | Do |
|---|---|
| Accept a long divisor blindly | Run 60–360 & take the strongest you fit |
| Forget reserves in the math | Subtract reserves before dividing |
| Use face value on investments | Apply the correct haircut |
| Overlook the age advantage | Use higher retirement % at 59½+/62+ |
| Submit partial statements | Provide every page of every account |
| Leave deposits unexplained | Paper-trail non-payroll deposits |
| Count accounts not in your name | Use borrower-owned eligible assets |
| Bank on excluded assets | Exclude real estate/business/crypto |
| Ignore other income | Stack SS/pension/dividends on top |
| Take the first non-QM quote | Make specialty investors compete |
| Assume you don't qualify | Get a free asset-based check |
Asset depletion mistake FAQs
Most common mistake?
Accepting a long divisor — always run 60–360 and take the strongest you qualify for.
Do missing pages cause problems?
Yes — provide every page; gaps & unexplained deposits stall underwriting.
Is ignoring other income a mistake?
Yes — stacking SS/pension/dividends on assets improves odds & terms.
Should I forget reserves?
No — unaccounted reserves overstate income and shrink approval at underwriting.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties. Nothing here is tax advice.