During a divorce, you’ll likely have many questions concerning what happens to your home, your current mortgage, and even your credit rating. I hope this article helps educate you on all available options so you can take the proper steps in purchasing your next home. I’m also happy to provide a free consultation including a comparative market analysis of your home (CMA) to help give you the answers you need to make the best financial decision. Let’s address some of the most commonly asked questions.
What happens to my current home?
If you and your spouse own a home, there are two main routes you can take to reach a solution. You can sell the home and split the proceeds or one person can “buy out” the other by refinancing the mortgage.
How does a divorce impact my credit score?
Unfortunately for many, divorce is a time of great financial hardship and credit challenges. Because you are responsible for the mortgage until it is paid in full or refinanced, it is imperative that you remain current on the monthly payments. I can discuss further whether refinancing or selling is a better option for your situation and come up with a plan for accomplishing your goals.
Can I buy a new home if I’m still listed on the previous mortgage?
Yes, but it’s sometimes difficult to purchase another home until your divorce is final. In most situations involving child support and alimony, the payments must be received for a specific time period before you can use it as qualifying income. If you are still listed as a co-borrower on the mortgage for the prior home, many mortgage programs will allow you to qualify while excluding that debt. I work with an experienced lender who can give you the best advice for your unique situation.
To learn more about how I can help, please give me a call
Thanks for reading,
Chris
