Attorney Matthew R. Arnold answering the question: “I’m not getting along with my husband. We’ve been married two weeks and it was a mistake. Can’t I just get an annulment?”
These days it seems like getting a mortgage under the best of circumstances is already hard enough. After all, the banks have tightened requirements and now demand detailed explanations of income, proof of the source of money and lengthy explanations of debt. You might think that given the financial havoc divorce can cause that the chances of getting a house are slim to none. Thankfully that isn’t true so long as you follow a plan.
According to a recent Yahoo Finance article, the trick to getting a mortgage after a divorce is to provide the most complete and honest picture of your financial health. Help the bank understand your financial situation by showing them your divorce decree, any child support obligations and any spousal support payments that go in or out of your accounts. All these things can play a role in whether you will be approved for a loan and it’s best to hand them all over to your banker right away.
The good news if you receive money in the form of child support or alimony is that you can count this income towards what you need to qualify for the mortgage. So long as the income is set to continue for three years then the bank will consider that income stream as part of your application. However, if you are the one making child support or alimony payments, the bank will reduce your borrowing ability as this income cannot be counted towards what you could contribute to your mortgage.
If you were divorced a long time ago you might not realize that the mortgage company will still want to see your divorce decree. Though it may seem surprising given the time that has passed, there’s no statute of limitations on mortgage underwriting and the bank will want to make sure you are not financially on the hook for anything even decades after a split.
If you own a house and are still listed on the mortgage with an ex-spouse you might not think it would be possible to ever qualify for a new mortgage of your own. Fortunately there’s hope. If your divorce decree clearly states that your spouse was given the home in the split and your ex is willing to provide documentation that shows they make the mortgage payments on the property for the past 12 months, then the new mortgage company will omit your ownership from your new application, vastly improving your ability to qualify. Another possibility in cases like this is to explore the idea of having your ex refinance you off of the loan. This way you’re totally in the clear in the event that your ex stops making payments.
Though picking up the financial pieces of your life after a divorce can be challenging, don’t throw in the towel. If you follow some simple advice you can move forward and start a new life after a North Carolina divorce. If you find yourself facing a complicated family matter then you need the help of experienced family law attorneys in Charlotte, North Carolina who can help guide you through the often confusing process of divorce.
“Is Divorce Keeping You From Buying a Home?,” by Scott Sheldon, published at Yahoo.com.
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