Posted by Apex Home Loans ● December 8, 2015

Divorcing Your Mortgage? Timing is Everything. Here's why.


When couples divorce, it’s likely that the last thing on their mind is whether the timing of their separation jives well with the conditions of their mortgage financing. Nonetheless, setting aside the difficult and emotional side of divorce to untie shared finances is a smart choice on the part of both spouses. If you’ve decided to get divorced, but haven’t yet filed a petition for divorce, here’s what you need to know about your mortgage: most mortgage lenders require either a temporary or finalized written divorce settlement agreement to complete any new financing.

This requirement was established because there are many moving parts to a divorce agreement. If maintenance and/or child support are part of the settlement, for example, these obligations will have a direct impact on each divorcing person’s debt load or qualifying income. In addition, as the divorce agreement also generally states who is responsible for any other existing marital debts, these may also affect loan eligibility and must be taken into account.

Considering the requirement of a divorce agreement for applying for a new mortgage, it may be in your best interest to consult with a mortgage banker if you are anticipating filing a divorce petition or already have done so. Deciding what to do with a marital home can be challenging, and the common options most divorcees have regarding their mortgage could be impacted by the timing of the divorce petition filing.

Essential Documents Needed During a Divorce


Topics: Homeownership, Divorce