Are You Buying a Home After Your Divorce?
Buying a home after getting a divorce can be especially overwhelming, so today, we have a few key tips to help you navigate this process.
Going through a divorce is difficult enough on its own, but buying a home and having to check off that divorced box can also be difficult. That said, there are a few things you can do to make this part of your life a little bit easier.
Start by being completely sure of your mortgage budget. Check it and check it again. When you start working with a mortgage lender, you will get a pre-approval letter which tells you the maximum amount of money they can loan you for your home.
However, keep in mind that you do not have to go and spend the maximum amount on your new home. You don’t want to end up house poor, where all of your money goes into your mortgage. After all, you still need money to live your life, right?
Don’t forget to talk to multiple lenders, either. Find a lender who understands your life situation. Make sure you are confident that your lender can help make this process smoother.
When you are out looking at houses, consider what’s really important. Downsizing because your financial situation has changed may not sound ideal, but you don’t want to stretch yourself too thin financially just to stay in the same area or get a home of a similar size. Being down to one income also means that you will have less buying power, which does limit your options.
“Make sure that you are emotionally ready to buy a home. “
You should always begin this process by creating a list of your must-haves. For example, do you need to be in a certain school district or is your commute more important? Location is a huge factor that can determine the style and size of the home.
You might also want to take your name off the marital home’s mortgage. Doing so can improve your creditworthiness. Even if you’re no longer married, if your name is on the mortgage, the lender still holds you liable for mortgage payments unless you sell that house or refinance it.
Over the course of this whole process, make sure that you take your time. You don’t have to rush any decisions. You might not be ready to buy a home as far as savings go, but there are many low down payment options available.
The final and most important thing is to make sure that you are emotionally ready to buy. Buying a house is a massive undertaking, not only financially, but also in terms of commitment and maintenance. Again, take your time and make sure that you are ready to take this step.
These are just a few key tips to help you navigate this process. If you have any questions, give us a call. We would be happy to guide you through buying a home for this new chapter of your life.