Residents of Manchester and other nearby areas of New Hampshire may want to learn more about the process of buying a new house after going through a divorce. If you are at the stage of legal separation before a divorce, there are some things of which you should be aware when it comes to home buying.
If you are going through separation
The lender will want to have a copy of your legal separation agreement. A property settlement may also be a requirement to tell the lender who has responsibility for what things. It can affect your debt-to-income ratio when you’re applying for a mortgage.
After paying legal costs, child support and alimony, you will have a certain income. Decide what is affordable before you buy the house.
In addition, be sure to remove yourself from your previous mortgage. This will be from the home you shared during the marriage. A quitclaim deed might be helpful.
Your payment history may be required. If you receive alimony payments, that should show; it will be helpful in proving income. With the right documents, you may receive pre-approval for your new home loan.
If your divorce is happening or is final
Community property will be a consideration in some states. Your ex-spouse might have rights to any property that you buy if you don’t wait until the divorce is final.
Establishing your own separate credit is important. Your credit score may suffer after divorce is finalized, especially if you had joint credit cards. Building a bank account reserve is also a wise move as divorce may be costly.
Whether you are legally separated, in the process of getting a divorce or have a final divorce decree, it is wise to be aware of some things when buying a new home. You’ll want to prepare so that the purchase of your new home can go smoothly.