Getting Divorced? Tips For Qualifying For Your Next Mortgage
Posted on: 30 May 2018
You may have an excellent credit history, but that does not mean it will be easy to get a mortgage after a divorce. Not only will your household income be reduced, but you could have financial obligations after the divorce is final that will affect how much money you take home at the end of each month. While getting your next mortgage won't be impossible, it helps to know some tips to help qualify with your lender.
Maintain Your Current Credit
While it is true that you won't know how much you'll end up owing in child support or spousal support, you do have full control over your credit history. Start by taking your spouse off of any joint cards where you are the primary cardholder. You then continue to use your credit cards like normal and pay your bills each month. This shows that you're capable of having credit, are not spending a high percentage of your limit, and are capable of paying it off each month.
Continue to make payments for other financial obligations that you have, and do not let them be forgotten about. For example, continue to pay any student loans, medical bills, and outstanding vehicle loans.
Stay With Your Current Employer
You are going to be changing your marital status, so now is now a good time to change careers as well. One thing that can work in your favor is your employment, especially if you've been with the same company for many years. This shows your lender that you have job security, which will help ensure that you can pay back the loan on your current salary. Even if you have changed employers, not having any gaps in your employment history can help.
Lower Your Future Debt-To-Income Ratio
Lenders look for you to have no more than 43% of your income go towards paying debt each month. Unfortunately, child support and spousal support count as debt. You should find ways to eliminate any debts that contribute to your future debt-to-income ratio to keep it well under 43%, that way your upcoming obligations due to the divorced do not put your debts over the top.
If you feel like you are going to have trouble qualifying for your next mortgage, be sure to talk to your local mortgage brokers about it when applying for the loan. They can give you advice for what will set you up to be viewed in a positive light.
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