Can I Get a Home Loan While Going Through a Divorce?
If you are going through a divorce, getting a home loan can be tricky. Lenders will want to know your financial situation before they will be willing to agree to mortgage terms, and in many cases those still in the process of getting a divorce do not yet know their full financial picture. If you have a separation agreement, your financial terms will already be spelled out – for example, if there are spousal or child support payments to be made, the lender will count this as a monthly liability. On the other hand, if you will be receiving support payments, this could be viewed as income and can improve your chances of getting a mortgage. If there is not yet a separation agreement in place, most lenders will require you get one before they are willing to give you a home loan.
If one spouse is looking to take full ownership of the family home, one of the best ways to split the home equity is through a spousal buyout mortgage. This requires the current mortgage to be refinanced so that it can be put in the name of one spouse only. Equity from the home is then used to give the other spouse a cash payment. One spouse gets the cash and the other spouse gets the home, albeit with a larger mortgage.
In short, whether you are trying to buyout your spouse for the current family home, or whether you are looking to purchase a new home, getting a mortgage while going through a divorce is possible. While it may be possible however, it is not always recommended. It is always important to get a firm grasp of what your finances are going to be like following the divorce – so in some cases, it may be better to wait until the divorce is finalized.
Contact Matrix Mortgage Today
If you are going through a divorce and are wondering what your mortgage options are, contact Matrix Mortgage Global today. We can discuss your options for a spousal buyout mortgage and other mortgage products and help you determine what would work best for you. We can also walk you through every step of the process from choosing the right lender to completing the final paperwork. With the Matrix team on your side, divorce doesn’t have to stop you from owning a home.