There are many things to consider about your current or desired mortgage when going through a divorce but the main three are probably: credit, income, and equity or down payment. Let’s take a look at why these are the main three things to consider when it comes to mortgages and divorce.
Credit:
How good is your credit? You can be making a ton of money, but if your credit is bad, you won’t be able to get a loan. For this reason, you’re going to want to check your credit score and obtain a credit report. You can do this through your lender or through annualcreditreport.com.
Income:
What’s your income? Do you have enough money coming in to:
A) not only afford the loan, but
B) budget all your household needs such as utilities, maintenance, etc.
When you split one household into two, you really need to consider things from a budgeting perspective as certain expenses overlap.
Equity or Down Payment:
Are you wanting to refinance your current home? Then you need to make sure you have enough equity. Are you wanting to purchase a new or second home? Then, you need to make sure you have a down payment.
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If you’re hoping to refinance up to the full value of your home or buy a new home with no down payment you need to realize that a lot of those loan programs have gone away. Therefore
you really must have enough equity or funds to complete the transaction.
If you have any questions regarding selling a home or buying during a divorce don’t hesitate to give us a call. We can help get you in the right direction.