Finding a replacement home after losing one’s house in a divorce is often not easy. Lenders, as a policy, generally give home loans to people with good credit and a solid source of income. If you are no longer part of a two-income household and are also paying alimony, the odds of getting approved for a mortgage diminish. The article lists some things such people in this predicament can do to increase their chances of landing a mortgage. If you are looking to purchase a home post-divorce, and your ex-spouse is living in a home you co-own, ideally, the ex should refinance in his or her name. That will decrease the borrower’s debt and increase his or her odds of being able to obtain a new mortgage. One important rule of thumb is not to buy a home during the actual divorce proceedings. It is a risky move even if one is wealthy. Katie Connell, a family law attorney in Atlanta, says one of her clients lost $10,000 in earnest money when he attempted to purchase a home during his divorce proceedings. “He had great credit, a very good income, but when the lender found out he was going through a divorce, they said, ‘Your alimony and child support payments are question marks,'” Connell states. Alimony is widely viewed as a debt. Susan Pryor, branch manager of Silverton Mortgage Specialists, concludes, “If you make $10,000 a month and give $3,000 to your ex-spouse, the lender doesn’t look at it like you’re making $7,000 a month. They look at it like you have a $3,000 car payment every month.” | Read More
Recent Posts
Archives
Categories
- Decor (1,739)
- Energy Saving Tips (15)
- Green Design (22)
- Greening Tips (1,194)
- Home Improvement (1,827)
- Home Remodeling (16)
- Home Security (10)
- Homeowners News (1,265)
- Homeowners News;Top Story (3)
- Housing and Mortgage Trends (851)
- Insurance (1)
- Maintenance and Repair (10)
- Safety (4)
- Smart Home Tech (1,167)
- Top Story (106)