Often the couples I meet with in my divorce mediations want to keep the marital home. Reasons vary from maintaining some stability for the kids to financial to emotional (one couple recently told me all their kids were literally born in their house). I reached out to Stacey Gross, a Divorce Lending Professional with Nations Lending to provide some tips and considerations. Here are her thoughts:
During a divorce a lot is happening in the relationship. Often, determining who keeps the home or if it’s best to sell the home are decisions that are not made easily. Additionally, they can have a long-term impact on your overall ability to buy a new home or refinance the current home.
We strongly encourage you to explore these options as soon as possible; preferably in the early stages of your mediation process. That way, you can make sure your decisions on your house harmonize with your goals and other financial decisions during your divorce.
For example, if you are a two-income family, your ability to afford the current home on only one-income needs to be explored. How you structure spousal maintenance can impact the ability to keep with the current home and even to qualify to refinance the Mortgage Note in your own name. Alternatively, if you need to qualify for a new home Mortgage, you’d want to know if and for how much you qualify before reaching final agreements on support.
Additionally, preserving credit due to divorce can be very challenging. It may be necessary to freeze all credit lines and reduce any credit card limits. Be clear on who is responsible for the payment and ensure those payments are made on time. Remember, if it is joint debt, it will affect your credit scores if payments are not made on time. Before closing accounts be sure to consult a lending professional or your loan consultant. In some cases, closing accounts can have a negative impact on your credit scores.
Bringing on a lending professional early in the process, particularly one specializing in divorce lending, can be incredibly helpful in discovering and choosing options that best meet your goals for the house and for your overall financial situation.
Stacey Gross has more than 30 years in the real estate field. She has created the Divorce Solutions Team to help individuals and couples:
- Protect your credit, divorces can have a long term impact on your credit
- Preserve future home ownership eligibility
- Provide education to empower you to make the best decision for you.
You can reach Stacey at: www.divorcesolutionsteam.com or 602-418-2833.