How Can a Mortgage Professional Help With Divorce?

It goes without saying, but I’ll say it anyway…divorces are complicated! There are many questions that an experienced mortgage professional can help answer before you finalize your divorce.  For example:

Can one of us afford the family home or do we need to sell it?

Will I have enough income to qualify for a mortgage after the divorce?

Is my credit score good enough to qualify?

Will I have enough assets to refinance or purchase a new home?

Do I have the right job and/or job history for mortgage qualification?

What’s my home worth?

Will the family home appraise high enough to pull out equity to cover the cash I owe my spouse, or do I need to pull funds from another source?

What’s the consequence if my Ex-spouse keeps the home but can’t refinance it into their name after the divorce?

What’s the best loan for me post- divorce?

Attorneys are not mortgage experts and there are many nuances in the mortgage world that can totally derail the perfect divorce settlement. Rainbow Mortgage Inc. takes a very proactive role in assisting our attorney friends and their clients in making sure their post decree housing goals are met.  We help you to (1) make realistic decisions about what is possible, (2) understand your loan options, and (3) structure a mortgage loan focusing on your post-divorce goals.  We are happy to help you by participating in client-attorney meetings to discuss potential initial options, provide revised options (if necessary) prior to the final signing of the decree, provide an estimate of what your home is worth using our AVM tool (which is the same tool used by lenders to evaluate whether a value on an appraisal is reasonable) and at no cost to you or your attorney, review the decree prior to it being sent to the judge.

Here are a few examples of items in a divorce decree that have caused client issues in the past: (1) The length of time that a person is to receive support payments does not meet lender guidelines to qualify for a mortgage loan.   Different loans have different guidelines however, standard guidelines require that a borrower prove that they will receive the income for a minimum of three years following the funding of the mortgage loan.  The dates listed in the decree must be carefully monitored and possibly adjusted if the divorce process goes on for an extended period before it’s finalized.  (2) Child care expenses are being shared and the decree lists a payment that is to be made monthly to a specified bank account- underwriters will sometimes consider this child support which can throw off a person’s monthly budget causing them to no longer qualify for a loan.

Divorces are complicated but the mortgage doesn’t have to be with the right professionals in your corner. We can offer you the help you need and why wouldn’t you take it?  Contact us for a FREE consultation and decree review.  We only get paid when you are happy with our service and your loan closes.  It’s a Win-Win for you!

4 Questions to Ask Your Lender If You’re Going Through a Divorce

During a divorce, one of the largest hang ups can be the real estate. Not only do the separating parties have to decide who is keeping the home and who is relocating, but there has to be consideration on what both parties can afford. Finding the mortgage expert to help answer divorce and mortgage questions is essential for a fluid divorce proceeding. Before choosing any given local mortgage broker company, ask these questions to ensure you’re in good hands:

Have you worked with clients who are currently going through a divorce? If so, for how long?

Rainbow Mortgage Inc. has been working with clients going through divorce since 2004. Since then, we’ve built a reputation as being the mortgage and divorce experts, while finding creative solutions to complex financial situations. We’ve worked alongside dozens of attorneys and have gained their trust while handling complicated transactions during a divorce.

Will you work with my attorney to ensure they’re up to date on my loan’s process?

Our goal is to save you time, money, legal fees, and trips to court by working with your attorney. We take the time to meet and work with your attorney to ensure that your goals are met and you’re able to get into your home whether it’s through a refinance or a purchase.

Will you read over my divorce decree to ensure I’ll be able to achieve my financial and housing goals?

Our Twin Cities mortgage experts prefer to read your divorce decree before it’s sent to the judge to be signed. This way, we can ensure the wording will allow you to obtain your goals and will not hinder your loan process. If your decree has already been signed, we can still look it over, however, it may need some adjustments which the judge will have to sign off on.

I was the homemaker while we were together, will I still be able to afford a new home?

Yes! If you have reentered the work force and are working full time, you only need to provide one full pay stub. If you’re going to be working part time, there are other conditions that apply.  Some programs even allow a letter of employment to be used in lieu of a pay stub.  Give us a call for more details on what you need to qualify for your loan.

 

Getting a mortgage after a divorce doesn’t have to be difficult. Contact the local mortgage advisors at Rainbow Mortgage Inc. to have all your mortgage and divorce questions answered today!