Now that you’re a single parent having gone through the divorce process, it can be an uphill battle trying to afford a mortgage. We will, later on, talk about a divorce buyout, but first, we have to have a conversation on how refinancing a Houston house after divorce. So, in a nutshell, this blog post will tackle several issues among them; how to refinance a property before or after divorce, what usually happens to individuals who can’t refinance a house after a divorce, and the buyout process.
Do you think you need to refinance a home after divorce?
The answer to that question is yes, especially if your wish is to keep your ex-partner off the loan. Both of you have to have a sit-down and decide who’ll maintain the property and who’ll go through the buyout. If you are the one fortunate enough to keep the house after the divorce, you have to apply for the mortgage. Of course, refinancing more often than not demands a lot of time and it’s always an emotional process. So you have to ask yourself, “Are you willing to go through all that?”
We do have a couple of ways you can use to get your name off a loan. And that’s possible without having to sell the property or refinance. One of these ways is what we usually refer to as ‘loan assumption.’
What this means is that you’ll have to take over the mortgage and keep on making the monthly payments as you were doing before. You won’t have to sell the home or refinance it after divorce. The downside is, for a single parent it’s challenging to qualify. But life is all about getting back in the saddle and giving it a second shot. Just make sure you go through all the paperwork when dealing with loan assumption.
The second way is taking a mortgage.
Your ex-partner has legal ground to take you to court if you can’t refinance the home after divorce. That’s why you have to get a new mortgage if you wish to become the sole owner of the property.
Do you know how to get a mortgage after divorce?
You can do so by getting your spouse’s name off it. Think about it! You’re no longer responsible for your ex’s financial situation. For this reason, if you get their name off the mortgage, you might better your credit ratings.
He or she will, therefore, have to refinance their part while you pay yours. So if you do the math, you’ll be decreasing your debt and at the same time increase your monthly payments over a short time. Applying for a new loan will no longer be difficult.
A piece of advice
It’s not wise to purchase a house while going through a divorce. You will only end up weakening your credit score and lose a lot of money in the process. And if your partner’s lawyers find out what you’re up to, you’ll, without a doubt, have to fight for your money.
It’s not going to be easy to pull through during this time. But if your play your card cautiously, you be just fine. Contact We Buy Fast Houston Houses if you wish to make inquiries.