When I was going through my divorce several years ago, amongst the countless worries that kept me up at night was the fact that I wanted to stay in my home. But, even if I was fortunate enough to get the house in the divorce settlement, how would I go about getting a mortgage after divorce? I knew little about the process, AND I was not employed at the time. It was beyond stressful.
Jeremy Woods is a mortgage banker who has been in the business for 14 years. He also went through a divorce and is a single dad. Jeremy’s combination of knowledge in the industry and his relatable experience makes him a GREAT choice for those looking at getting a mortgage after divorce. Not to mention, Jeremy’s just a really great guy. He makes you feel comfortable, yet he’s professional and knowledgeable! Jeremy can do business is all 50 states, by the way.
Here is an article Jeremy wrote that might be helpful!
6 Tips To Getting A Mortgage After Divorce
By Jeremy Woods
Going through a divorce can be one of the most difficult times in your life—it was for me! While the stress you’re feeling is typical, it can sometimes be overwhelming, too. Whether it’s the legal process, your finances, the effect divorce is having on your child(ren), or the fact you may still be living in the same house as your spouse, there’s plenty to think about and deal with.
While it may not be your top priority, determining who is going to stay in the house and who is going to move out also needs to be addressed at some point. Regardless of which spouse remains in the home (REMAINING Spouse) and which spouse leaves the home (DEPARTING Spouse), both are possibly going to need a mortgage–the Remaining Spouse with a Refinance and the Departing Spouse with a Purchase.
Once you’ve made that decision, I recommend getting in touch with a Mortgage Banker as qualifying guidelines differ for divorcees based on many different things.
Here Are 6 Things To Know About Getting a Mortgage After Divorce (For Men AND Women).
1. Get Pre-Approved.
Speak with a Mortgage Banker who can help you navigate through the process AND who understands what you are going through.
2. Protect Your Credit.
Credit scores are very important when it comes to getting approved for a mortgage. The higher your score is the lower your rate can be. Make sure you continue paying ALL your bills on time! This is especially important if you don’t typically make the payments. If your spouse handles the financial aspects, you need to actively get involved. If you currently have a mortgage, confirm it continues getting paid on time—along with all other debts. Any derogatory marks on your credit report will negatively affect your credit score and could cause you problems trying to qualify for a loan.
3. Refinance one spouse off the mortgage.
The spouse who’s staying in the house (Remaining Spouse) will likely have a set amount of time (per the divorce decree) to refinance the current mortgage for one or two reasons: 1) Departing spouse has to be removed from the current mortgage as he/she will not have ownership anymore, and (2) Remaining Spouse may have to pay the Departing Spouse a portion of the equity (in the home) by completing a “cash-out” refinance.
4. Receiving maintenance and/or child support.
Typically proof of six (6) months receipt is required in order to count maintenance/child support as income—although sometimes 1 month receipt is allowed.
5. Counting maintenance and/or child support as income.
The payments must continue to be received for at least 3 years after the date of the mortgage application.
6. Paying maintenance and/or child support.
These payments will either be counted as debt OR subtracted from your income (depending on the situation).
Remember, as difficult as the divorce process is, you will get through it, and life will just get better and better. Be sure to surround yourself with close friends, including other divorced men and women who can offer support and encouragement. Divorce is difficult, but it does offer some unexpected gifts: wisdom, empowerment and courage you never realized you had.
Jeremy Woods (NMLS #112818) is a Senior Residential Mortgage Banker. He has been in the industry for 14 years. A University of Wisconsin-Madison graduate, Woods can work with clients in all 50 states, handling both purchases and refinances for primary homes, second homes and investment properties. Feel free to give Jeremy a call at: (847) 691-7888. CIBC is an equal housing lender and member FDIC.
“It’s been a pleasure working with you. Thank you for your personal care, flexibility and heartfelt compassion. This was such a touchy situation and quite worrisome with all the changes for me. But you made it be smooth and your kind confidence helped me too.”—a recent email from one of Jeremy’s clients.
Like this article? Check out, “Your Mortgage and Divorce: Why You Should Refinance ASAP”