23 Feb Divorce and Refinancing Your Mortgage
If you are going through a divorce or contemplating divorce, your marital home is most likely one of your largest assets. Typically, one party retains use and possession of the home during the divorce, and seeks to refinance as a single person once the divorce is final. Included are some tips for walking through this process so that you can anticipate and plan for the road ahead.
Maintaining your credit is challenging but essential. You may have new bills, and the same two incomes now fuel two households. Nonetheless, seek to understand what impacts your credit score. You can visit websites to access free monthly reports that will not lower your score, such as Credit Karma, or budget apps like Mint. Websites like annualcreditreport.com provide a free report from all three credit bureaus (Experian, Equifax, and Transunion). Also consider freezing your credit with each bureau to prevent hard reports that you have not authorized.
Most financers require a Property Settlement Agreement or a Final Divorce Decree including disposition of property. You may need proof of spousal support, child support and proof that this income will continue on a long term basis. Your income must be deemed stable and ongoing to be “qualified” income for refinancing. Most likely, your income must have been received for the past 6 months and proven to continue for 36 months.
Financially, no one benefits from divorce, but keeping an eye on the future can help you come out intact. Consult an attorney to discuss how other issues may affect your mortgage during divorce such as the timing of filing, how your title is vested, and how to avoid “Cash Out” refinancing. Find out more in next week’s post, contact us here today, or call 864-804-6330.