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While divorce itself can be stressful, navigating shared real estate doesn’t have to be. Here are the top 4 concerns we hear regularly and guidelines we like to provide to our clients.

Can I buy a house before my divorce is final?

Yes!  The MSA/Marital Settlement Agreement is the document that outlines how all of your assets and income will be divided.  Your mortgage advisor would need to know that information, and to have the signed and court-filed MSA for the loan file prior to the closing date.  If you are receiving a payment from your spouse, however, and you need that to buy the new house, you will need to discuss with your attorney and mortgage advisor how the timing of that payment will affect your loan closing. 

Can I use my child support/maintenance income to qualify?

It depends on the ages of the children and the length of time you have received the payments.  Your mortgage advisor is required to show that you will receive the income for at least 3 more years, and document at least 6 months of consistent payments to count it for the loan.

Can I take money out of my house to pay my ex-spouse?

Yes.  It is important to work with your attorney to determine your options for any payments (i.e. pulling from retirement, investments, etc), however, you can refinance your home and get cash back at closing to satisfy all or a portion of that payment. 

How do I know if I would qualify to keep my house?

It’s never too early to speak to a mortgage advisor to help you plan.  They can help you consider the monthly expenses so you can determine what works with your new budget.  They can also explore options like paying down debt with the mortgage, adding a co-signer, or selling and starting fresh in a new home. 

If you have further questions or would like to speak to a knowledgeable mortgage advisor today, contact our Mortgage Team.