Mortgage Advice for Couples Planning a Divorce
October 16, 2018 | Posted by: Mortgages By Marbelle
Mortgage Advice for Couples Planning a Divorce
When couples decide to divorce, financial assets accumulated while together must be equitably divided and in many cases, the most substantial shared asset is the matrimonial home.
First, make sure you keep paying your bills throughout your settlement period. Recent slow or missed payments will make it either prohibitively expensive or downright impossible to qualify for mortgage financing in the foreseeable future.
Second, separate your joint accounts as soon as possible and check your credit report to ensure that you did not miss anything, a missed payment on a joint account will hurt both your credit ratings equally. Also, if all or most of your credit has been in your spouse’s name, set up your own accounts as quickly as possible because it is much easier to get approved for a mortgage with an established credit history. Third, since no lender will provide you with a mortgage until all of your future financial obligations can be clearly understood, complete your separation/divorce agreement as a matter of priority..
More specifically, if you are looking to buy out your former husband/wife’s share of the matrimonial home, the first step is to agree on the property’s current market value. This can be done by hiring an appraiser, and/or speaking with real estate agents who are mutually accepted as trusted resources.
If an agreement on price can be reached, the net equity in the home can then be calculated. If a price cannot be mutually agreed upon, the house will normally be listed for sale and either spouse may bid on it in the open market.
No matter how the current value of your home is established, the spouse who wishes to purchase the property must be able to afford the required mortgage, and qualifying on a single income can be
If after taking this step the numbers still aren’t looking good, keep in mind that there are more flexible mortgage solutions available
While getting through a divorce is often unpleasant and expensive, getting good mortgage advice can at least help save you money and unnecessary hassle
For further information, please feel free to contact us at Marbelle !
