Divorce can be challenging both emotionally and financially. Since the marital home is a couple’s largest asset it is often a tough decision during a divorce of what to do with the home. Keep it and buy your ex out or sell it off and split the equity. Once you make the decision to sell, there are many factors you need to consider whether you can purchase a home on your own or if you will have to rent for a while until you are in a better financial position.
It is no surprise that a divorce can ruin your financial situation and leave you wondering if you can buy a house after a divorce. Now that it is just you on title and chances are you will need a mortgage. In the day mortgages were pretty straightforward and were an easy process. Nowadays mortgages are a bit more complicated and it can be tough to qualify for one. The following will help you clarify your situation so you can make a sound decision.
Separate your finances
Many people’s finances change when they get divorced. It is important to separate your finances from your ex. You will want your financial situation and credit score to be as accurate as possible when applying for a mortgage. Also, you do not want your ex’s financial actions reflecting on your credit score.
Figuring out your financial position
When you go from a dual income to a single income you need to figure what income you are bringing in and what your outgoing costs are. Your Mortgage Specialist can help you with a financial plan and determine what you can afford for a mortgage.
Credit Score
Divorce will affect your credit score. It is very important to check your credit score after your divorce. Your Mortgage Specialist will help you get back on track if your credit score is low.
Should I rent or should I buy
After a divorce you are left thinking, will I sell the marital home and buy another home or should I rent until I get settled and am in a better financial position? It all depends on your situation and what your current income is, what is happening in the real estate market (low-interest rates, market boom, etc.), and can you afford to own.
Dream vs Reality
Almost always there are two income earners in a marriage and you have become accustomed to a certain way of living. After a divorce, you are most likely to downsize your housing situation. When choosing a Realtor, choose a professional who works with divorcing couples. They can be helpful from both the emotional and financial sides. They are there to help you make a realistic decision on the right home that fits into your budget and that fits into your new lifestyle.
