After receiving the divorce decree, when should I refinance or sell my home? – Jill from Nashville, TN
To refinance a home after the divorce, there are some things to consider. Borrowing conditions vary from 18 months to 18 weeks. Because of this uncertainty, the conditions could be worse in the future than they are today. After all, an increase in rates or a drop in value of a property turns borrowing money from a “can” to a “can’t”.
When to Refinance a Home after Divorce
For this reason, I tell my clients to get approved as soon as possible. That does not mean executing the transaction must happen quickly. Rather, getting approved will give a full understanding of your borrowing power and any issues that you need to resolve before getting a loan. Many of these issues, such as the end of child support or alimony, can create the need to accelerate a transaction as you will no longer have this income. Conversely, a transaction can be delayed if you need to build a history to show these types of payments. However, without a full analysis by a Divorce Mortgage Pro, you will be working with theoretical numbers and speculation.
So, the short answer is to start the process as soon as possible. It may take a while to complete the process, but start now by speaking with a lender that specializes in divorce. Get information about your specific situation as quickly as possible so that you can take any necessary steps to make sure there are not any unexpected hiccups.
The Best Time to Start Refinancing
However, the best answer is to start this process before the decree is finalized. The cold truth: lenders don’t have to give you a mortgage just because the decree says you get the house. You must actually qualify for the mortgage or risk having to sell your home. Before you finalize the divorce, you need to know if you cannot qualify for a mortgage on your own or must take certain actions to refinance your home. Talk with a Divorce Mortgage Pro today.
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