Among mental and emotional stresses, divorce can also come with financial stresses. When it comes to learning about mortgage options, we are here to help. It likely makes sense to work with a team of people that can help give advice for each aspect of financial and asset separation. This team of trusted professionals could consist of an attorney, financial planner, tax professional, loan officer, and realtor. This will ensure that you are splitting assets in an equitable manner and bring some peace of mind to decision making.
Common mortgage questions include:
- Can I qualify for a mortgage on my own?
- Can I afford to buyout my ex and stay in my current home?
- What does it look like if we sell our home and each buy a different home?
- What income can I use towards qualifications—child support, spousal maintenance, retirement asset draws, social security?
- Can I just ‘release’ my ex from the mortgage and title?
First decision – keep or sell. If one person wants to keep the home and the other doesn’t, it makes sense for that person to get a mortgage application filled out to see if they can afford to stay in the home based on their financial qualifications. In this type of situation clients also need to decide how the equity of the current home will be divided. In some cases we suggest a cash out refinance in order to split the marital equity of the home.
Getting prequalified for a purchase or refinance early in the divorce process can be very helpful. This insures that the requirements laid out in the divorce decree are reasonable for each person and their future mortgage plans. For example, if the divorce decree says Spouse A needs to refinance within 3 months of the divorce being finalized, in order to remove Spouse B from mortgage, title, and pay marital equity of $20,000 – we would want to confirm the homes equity and that Spouse A is qualified to do so prior to finalizing the decree. Each situation is going to be unique so working with a loan officer and discussing qualifications early can set very clear and rational expectations for the decree.
If you know someone that could use help navigating and taking control over their mortgage, I am here to help. I have a lot of experience when it comes to aiding the process of refinance and removing an ex from a loan, OR helping clients use their marital equity to get into a new house and fresh start!
Thank you for your partnership! I’m here to answer your questions. Let me know how I can help!
