The process of a divorce is never an easy transition. One professional you need to have in your court is a knowledgeable mortgage professional. Hiring an experienced loan officer can help minimize some of the pressure you’re already under during this life challenging event.
What options will you both consider? What will work best for you moving forward? Your mortgage professional can guide you through your choice and help answer the questions that you may have during the marital property division. Here are a few examples you and your spouse may consider:
One Spouse Keeps the Home and Assumes the Mortgage
In most cases, if one party wants to keep the home, he or she will have to buy out the other owner. Spouses can also sign quit-claim deeds, giving up their rights to the property. A quit claim removes the spouse from the property title, but not from the home loan.
One Spouse Keeps the Home and Refinances the Mortgage
If one spouse wants – and can afford – to keep the house, that spouse should pre-qualify for a mortgage before the divorce is final. Sometimes, a divorcing couple will decide that one spouse is going to keep the house.
Selling and Purchasing After Divorce.
When both parties agree to sell a home and divide the assets, each spouse will now be looking to purchase and or rent another residence. Your mortgage professional has knowledge of the division of assets associated with the divorce, and can assist you with the processes of qualifying for a new home loan. They will be able to calculate your revised income, and debt when working with the lender to approve the new loan. They can even work to help improve your credit standings in the process as well.
Your mortgage professional has the ability to carefully review your division of assets, your family income and assess how your divorce will affect your overall financial portfolio. Divorce is a life changing and challenging circumstance, and working with a valued mortgage professional should always be a key player on that team.
As a mortgage expert, I am always available to answer questions and can help guide you through the process of refinancing your home during or after a divorce.
Blog post written by Christy Infantino.
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