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 divorce from before it’s filed to while it’s pending and, of course, once it has been finalized. So why wait?
Keep reading to learn more about which divorce loan fits your unique situation.
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Divorce Refinancing
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.
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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. Rest assured that 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. You can start the refinancing process even while your divorce is still pending. Alimony or spousal support doesn’t need to be finalized yet. This allows you to move forward and get your housing situation settled before or shortly after the divorce is complete.
Want to refinance to give your spouse cash so they can purchase a new home?
You can refinance the family home anytime during the divorce process. Many lenders suggest waiting until it’s finalized, but starting earlier can have benefits. Completing the refinance while the divorce is pending lets you give your spouse their share of equity sooner. This provides funds for a down payment and helps both of you settle into your new homes before or shortly after the divorce is complete.
Want to purchase a new home while your divorce is pending?
Whether you and your spouse decide to sell the family home and each purchase new homes, or your spouse is staying in the family home and you’re buying a new one, both options are possible. You can even move forward while your divorce is still 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.
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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 essential. They’re an integral asset to have on your team.
Brent Rasmussen is a Certified Divorce Lending Professional. Brent’s experience and education in helping clients navigate divorce loans can help make the process as simple and stress-free as possible.
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