Separation / Divorce
Separation and divorce are tough,
I'm here to help!
Aside from the emotions involved with a separation, there are several things to consider regarding your mortgage.
When a separation agreement has been finalized usually some action needs to be taken. The main question that needs to be addressed is if you are planning to use your share of the equity after a sale to buy a new home OR will buy out your spouse in order to stay in the existing home?
In the event of a new Purchase, here are a few things to consider:
- How much equity will you realize after the sale of the current home?
- What can you afford relative to your current financial situation, qualification and future plans?
- What is your potential down payment as defined in your settlement agreement which may include debt payouts?
In the event of a spousal buyout, here are a few things to consider:
- Can the equity in the property be used to consolidate and/or payout joint liabilities?
- Is your share enough to payout your spouse or will a mortgage increase be necessary?
- Will you qualify for the existing mortgage and possible increase?
There may be options to purchase your spouses share even if you will have less than 20% equity. That may constitute a purchase mortgage.
If you will realize more than 20% equity in the home you might want to do buyout your spouse out via a mortgage refinance, allowing you to avoid mortgage insurance.
As a mortgage professional, I will outline the options to help you make an educated decision.
By working with a mortgage professional such as myself, I will help you navigate whatever scenario best applies to your situation all while coaching you on how to maintain a positive credit rating.
When a relationship comes to an end, sometimes either both parties or one meets credit challenges. Don’t fear, there may be mortgage options for you too.
I sympathize that this is a difficult period in your life. I have helped several individuals in your exact situation get back on track.
Often I advise people during the decision making process of asking their spouse for a separation.
Please contact me today so that we can discuss your current situation and explore all options to help you move on with your life.
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Whether you are buying your very first home, upsizing, downsizing, or refinancing, I can find the right fit for your unique financial situation.
