One of the biggest decisions in a divorce is who is going to keep the house. If you are the spouse who is moving out, you may not look forward to the prospect of renting, especially if you’ve grown used to owning a home.
There are many concerns you may have about purchasing a home after a divorce. You may worry that you will not be approved for a mortgage or be able to make the mortgage payments on your own.
Have your property division agreement ready
Most mortgage lenders are going to want to see a copy of your property division agreement signed by a judge. You most likely won’t have one of these until after your divorce is finalized.
The property division agreement confirms what property each spouse received during the divorce, so mortgage lenders are going to want to see what assets or debts you are responsible for.
Make sure your credit report is accurate
Take any necessary steps to clean up your credit report. Make sure any debt that is no longer your responsibility is reflected on the report, so lenders obtain accurate information.
Remove your name from any mortgages and deeds for properties you no longer own. Language should be included in your property division agreement stating that each spouse agrees to cooperate with the other for the purpose of removing names from mortgages, deeds or other debts.
Show copies of your good payment history
Although going through a divorce may be challenging, try to save as much money as possible if owning a home is your goal. Keep track of your expenses and obtain records of your payment history on any open accounts, to demonstrate to lenders that you are financially responsible.
By taking these steps and working with an experienced divorce attorney, you have a much better chance of qualifying for a mortgage loan and purchasing a new home, even before your divorce is finalized.
Open communication and cooperation with your spouse, organization and a thorough examination of your finances can lead to a new home purchase. Owning your own home postdivorce can help you make fresh start and move forward with your new life.