Getting a Mortgage After Divorce

Home alone

A divorce changes so many aspects of your life, both emotionally and physically. One major obstacle is figuring out a living arrangement that works for everyone involved. If you decide to pursue a mortgage (or assume the old mortgage) on your own, a divorce can make the process more difficult, but it’s not always impossible. Here are some issues you’ll need to address:

You may want to make sure your old home is in one person’s name only

If you or your ex can refinance in his or her own name, that’s the ideal situation, since one of you would no longer be legally responsible for the mortgage payments. However, if that’s not possible and you don’t want to make your ex and children move, you may want to remain on the mortgage together for an agreed-upon period of time. Make sure you have a binding agreement on how profits will be split when the house is sold down the road. Keep in mind that this works best if the person leaving the home has enough income and good credit to afford a house on their own.

Don’t buy a home during the divorce proceedings

Lenders will see that as a sign that you could potentially be liable for alimony payments and/or child support. Alimony is treated as debt, so this could negatively affect your mortgage application. On the flip side, if you’re the spouse remaining in the home and will be receiving alimony, those payments may not count as income for several months. Wait until everything has settled down and you can be very clear with your lender about your financial situation.

Consider where you’re going to live during divorce and mortgage proceedings.

Assuming that one spouse is going to stay in the house post-divorce, there are a couple of options you could consider. One is to stay in the house together, which saves money in the short term. This works for couples going through a relatively amicable divorce, especially if kids are involved. Another option is to rent an apartment near the house and trade off staying in it. The important thing is to take your time when making this decision, since your emotional and financial situation can change any moment.

A mortgage might not be the best decision.

Sometimes, you might be deluding yourself into thinking you can afford either your old mortgage or a new mortgage on your own. It’s important to remember that a divorce is an extremely emotional, fragile time in a person’s life, and you will be dealing with all kinds of decisions at once. Contact a financial planner who specializes in divorce to go over your options. It may be in your best interest to wait a few years before assuming the responsibility of a monthly house payment.

These are just a few of many questions you will ask yourself while making such a major life change. If you would like to speak with one of our excellent, experienced mortgage loan officers, call 877.312.9033 and we would be happy to have a chat about your individual situation.

25 responses to “Getting a Mortgage After Divorce”

  1. Droge huid says:

    Enjoyed the post.

  2. kayribbons says:

    Everything is very open with a precise clarification of the
    issues. It was definitely informative. Your website is useful.
    Thank you for sharing!

  3. Foul says:

    It’s really a nice and useful piece of information. I’m happy that you just shared this useful information with us.
    Please keep us up to date like this. Thank you for sharing.

  4. Gaston says:

    Hey There. I found your blog using msn. This is an extremely well written article.
    I will make sure to bookmark it and come back to read more of your useful information. Thanks for the post.
    I’ll certainly return.

  5. Grover says:

    I blog quite often and I really appreciate your content.
    This great article has really peaked my interest.

    I am going to book mark your blog and keep checking for new information about once a week.
    I opted in for your Feed as well.

  6. Irving says:

    Keep on working, great job!

  7. Lucas says:

    Very descriptive post, I loved that a lot. Will there be a
    part 2?

  8. Cliff says:

    Hi, the whole thing is going perfectly here and ofcourse every one is
    sharing information, that’s really excellent, keep up writing.

  9. Hello there! Do you use Twitter? I’d like to follow
    you if that would be ok. I’m definitely enjoying your blog and look forward to
    new updates.

  10. Juliane says:

    Woah! I’m really digging the template/theme of this website.
    It’s simple, yet effective. A lot of times it’s hard to get that
    “perfect balance” between usability and appearance. I must say that you’ve done a fantastic job with this.
    Additionally, the blog loads extremely fast for me on Chrome.
    Excellent Blog!

  11. Terrence says:

    I was recommended this bloog by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my
    difficulty. You’re wonderful! Thanks!

  12. There is definately a lot to find out about this topic.
    I like all the points you have made.

  13. Lemuel says:

    I’m gone to convey my little brother, that he should also pay a quick visit this website on regular basis to get updated from most recent news.

  14. Maxwell says:

    Greetings! Very useful advice within this post!
    It is the little changes that produce the most significant
    changes. Thanks for sharing!

  15. Thank you for sharing your info. I truly appreciate your efforts and I will be
    waiting for your further write ups thanks once again.

  16. 먹튀 says:

    Hello there! I just wish to give you a huge thumbs up for your excellent
    information you have got right here on this post.
    I’ll be coming back to your web site for more soon.

  17. Stewart says:

    Pretty! This has been a really wonderful post. Many thanks for supplying these details.

  18. 스웨디시 says:

    I was able to find good advice from your blog articles.

  19. Kristian says:

    Everything is very open with a clear clarification of the issues.
    It was definitely informative. Your site is very useful.
    Thank you for sharing!

  20. Shantell says:

    Right here is the perfect webpage for anybody who hopes to understand this topic.
    You understand a whole lot its almost hard to argue with you
    (not that I personally will need to…HaHa).
    You definitely put a fresh spin on a subject that’s been written about for many
    years. Excellent stuff, just great!

  21. gw99 says:

    I quite like looking through an article that will make people think.
    Also, many thanks for allowing me to comment!

  22. Francesco says:

    This text is worth everyone’s attention. When can I find out more?

  23. Fidelia says:

    Very good post! We will be linking to this particularly great post on our site.
    Keep up the good writing.

  24. Thanks for the sensible critique. Me and my neighbor were just preparing to do a little research about this. We got a grab a book from our area library but I think I learned more from this post. I’m very glad to see such wonderful info being shared freely out there.