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Yes, getting a mortgage after a divorce is possible, although it may present some challenges. Your financial standing as an individual, rather than a couple, will be evaluated. Lenders will look at your single income, credit score, and debt-to-income ratio. It’s advisable to consult with a licensed mortgage advisor specializing in divorce mortgage’s to better understand your options.
The responsibility for who pays the mortgage during a divorce can vary depending on court orders or mutual agreements between spouses. Typically, if both names are on the mortgage, you are both legally responsible for payments. Consult your legal counsel for advice tailored to your situation.
Some common divorce and mortgage questions include:
Yes, there are advisors who specialize in the complexities surrounding divorce and mortgages. These professionals can guide you through the options of refinancing after divorce, obtaining a new mortgage, or selling your property. Victor Emmel with Goodway Mortgage has a RCS-D™ Designation [Real Estate Collaboration Specialist – Divorce]. You can contact him here.
After a divorce, you generally have a few options:
Mortgage during and after divorce involves several considerations:
Refinancing after a divorce usually involves:
Not necessarily. Your ability to get a mortgage after a divorce will depend on your individual financial health, which might have been impacted by the divorce proceedings and any associated costs.
Divorce can complicate both options. For a new purchase, you’ll be assessed as an individual, which may limit your buying power. As for refinance, you’ll need to determine whether one person can assume the mortgage alone or if selling is the better choice.
Once you refinance after a divorce, the property and mortgage typically belong solely to the person who refinanced. However, you should ensure this is clearly outlined in your divorce settlement to prevent any future claims from your former spouse.
If your former spouse is not cooperating, it’s crucial to consult legal advisors and divorce mortgage advisors for guidance. Legal routes may be necessary to enforce property and financial agreements.
If neither party can afford the mortgage payments after divorce, selling the property is often the most practical solution. The proceeds from the sale can be used to pay off the mortgage, with any remaining funds typically divided according to the divorce settlement.
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Let’s have a conversation. We’re here to help you. First, we’ll answer all your divorce and mortgage questions and what your housing goals are. Next, we’ll examine your financial situation to determine what’s doable for you. We’ll also set some timelines to aim for. We get it—divorce makes everything more complicated, but we’ll be with you every step of the way.
We’ll help you complete your purchase or refinance pre-approval questionnaire and gather essential documents such as paystubs, W2’s, and bank statements. After that, we’ll issue a pre-approval letter and a “Total Cost Analysis” mortgage loan compariosn to help you evaluate the most cost effective options. This way, you’ll know what to expect—no surprises!
We’ll be by your side through your divorce and will work with your divorce attorney to help streamline the process. When you’re ready, we’ll look around to find you the best loan deal and interest rate. Finally, we’ll ensure the loan process goes smoothly from beginning to end. It’s that easy!