No one who gets married envisions themselves ending up in a divorce. Unfortunately, it happens to some people. If there is anything positive about the divorce, it might be more about getting a fresh start. However, the fresh start may come with more responsibilities that one held for. If you are trying to buy a house or get refinancing through a mortgage loan, the situation after the divorce may become more complicated than what it was used to.
But these complications doesn’t have to stop you from re-entering the mortgage market and getting the money that you need, even after the divorce has been made final.
The first consideration that you need is to make is the source of your income. The significant change is that the household is no longer a two-income family situation. Because of the divorce, you only have your source of revenue to consider; thus, this may mean you might only qualify for a mortgage loan that’s lower than what you expect.
There is something you can do about this, though. If you are receiving child support on a monthly basis, you may document the continuity of such payments. Lenders could consider them factored earnings from your end.
After you have figured out how much you are earning, then you can now sit down and decide whether the house you intend to buy is something that you can afford to pay every month. How do you know that the house you’d like to buy is the right one for you? Find the balance between your income and the bills that you need to pay every month. To get the best chance to qualify for a mortgage, keep all your debt to the maximum of less than 50% of your monthly income before your income is taxed.
The assets that you have kept in the reserves will significantly affect the mortgage loan application. How much would be a good amount to save? If you can save at least six months-worth of bill payments, interest, taxes, and other insurance costs, then you have enough to live by until you can adjust. Remember that aside from the mortgage loan; you will have to save for the cost of the down payment too.
Is it possible to apply for a mortgage after divorce? Yes, it is, As long as you are earning income and you have savings set aside, you will be able to get the mortgage loan approval just when you want to.
Image Source: www.totalmortgage.com