Divorce is never an easy time. If you and your spouse are both listed on the family home, you have several options. Before you choose a divorce loan, it’s important to note that you can begin at any stage of your divorce from before it’s filed to while it’s pending and, of course, once it has been finalized.
Keep reading to learn more about which divorce loan fits your unique situation.
You Might Also Like: Divorce Credit Score Mishaps
If you would like to stay in the family home, a refinance is in order. Refinancing during a divorce will take your spouse’s portion of the loan and add it to what you owe. You must be able to qualify for the mortgage with only your income and credit score. Alimony or spousal support can also be used to help qualify for the mortgage, but only if the divorce settlement states you will continue to receive payments for at least three more years.
You Might Also Like: Your Escrow Account and Divorce
Want to refinance before your divorce is filed or completed?
Since you’re looking to begin the refinancing process before your divorce is complete, the alimony or spousal support won’t be finalized. Which is fine, because the team at Mortgage Specialists is equipped to guide you through the refinance process during this time and will not require a finalized divorce before beginning the process.
Want to refinance while your divorce is pending?
If you’re in the middle of a divorce and would like to look ahead at your housing situation after the divorce is finalized, there’s no reason to wait. As mentioned above, since you’re looking to begin the refinancing process while your divorce is pending, the alimony or spousal support won’t be finalized, but we are able to begin the process without a finalized divorce, allowing your housing situation to be settled before or shortly after the divorce is complete.
You Might Also Like: Refinancing During Divorce
Want to refinance to give your spouse cash so they can purchase a new home?
If you’re thinking of refinancing the family home so you can stay and your spouse can purchase a new home, you can do so at any point of the divorce process. While many lenders will tell you to wait until the divorce is finalized, it can be advantageous to begin before then. If you’re able to complete the refinance process while the divorce is pending, you can give your spouse their portion of equity before the divorce is finalized. Doing so gives them money for a down payment and allows both of you to be settled in your homes before the divorce process is complete or shortly after.
Want to purchase a new home while your divorce is pending?
Whether you and your spouse decided to sell the family home and both purchase new homes, or your spouse is staying in the family home and you’re buying a new home, you can do so while your divorce is pending. In fact, we recommend it! If you focus on your housing situation while the divorce is pending, you’ll have everything finalized before or shortly after your divorce is complete.
You Might Also Like: Home Ownership After Divorce
Regardless of your unique situation, assembling a team of specialists you can trust during your divorce is incredibly important. Doing so will give you a wealth of knowledge to lean on when making decisions. In addition to your attorney and financial planner, a mortgage lender experienced in divorce loans is an integral asset for your team.
Brent and Jonathan are both Certified Divorce Lending Professionals. Their experience and education in helping clients navigate divorce loans can help make the process as simple and stress-free as possible.