Soon-to-be divorced mom of two would like financial advice on the best way to get a home loan. Never been a part of the financial end of matters and serious advice would be appreciated.
2006-07-10 05:20:20 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are many factors to consider. But first I would wait until after the divorce. Not sure what state you live in - but with a divorce - You do not want him to have his name on any of the paperwork,etc. When a Lender or Broker takes the 1003 (Loan application) they can put on there "seperated", but underwriting would want the divorce decree, and sperate maintage agreement if there is child support. You do not need to list child support on a loan application - unless you need it to pay for your mortgage, and to keep your DTI (debit to loan ration) down. Do you have Job time? Lenders look at a 2 year history. If not, a letter of explination will work, since you are coming from a divorce. But lenders need to know how you plan on paying for a loan.
Other things to consider:
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score.
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.
2006-07-10 14:42:31 · answer #1 · answered by W. E 5 · 1⤊ 0⤋
In many states, husband and wives can obtain separate financing. Contact a lender to make sure. BUT most banks will require a Deed from your spouse relinquishing his interest .. kind of an oxy moron.
If you purchase a house prior to the divorce being final, your soon to be ex will probably have to sign a deed granting any possible community property interest in the property to you. It'll take him 2 minutes tops to do it.
If he refuses to sign, you may have to wait until the divorce is final. If you are using an attorney, ask about the community property laws in your state regarding home ownership and spouses.
Good luck :)
2006-07-10 08:15:06 · answer #2 · answered by Christine 3 · 0⤊ 0⤋
You stated you get carry of the domicile. For her to are starting to be the domicile you would have had to have signed a stop declare Deed and released your self from any funds on the domicile. in case you probably did that then that is why you weren't contacted about her dropping the domicile because it become not your problem. If on the different hand your call become "not" removed from the non-public loan and she or he lost money on the sale then the monetary employer "would" attempt to come back when you for the stability, so be positive to envision your credit comments to make positive that is not on there. If there's a judgment on you with regard to the domicile then "no" you won't be able to get yet another domicile till that is settled.
2016-10-14 07:41:59 · answer #3 · answered by ? 4 · 0⤊ 0⤋
You would need to be divorced first to keep legal matters in check. The loan depends then on your credit, income and so on. You can talk to a Mortgage Broker for no charge at your local Bank. They are everywhere. Good luck!
2006-07-10 05:24:43 · answer #4 · answered by educated guess 5 · 0⤊ 0⤋
Speak to a lender with many programs available. They cannot discriminate because of your pending legal actions. It may be inconsequential that you are in the midst of divorce, depending on how you qualify on your own.
If you need further advice, please feel free to contact me. I am a licensed Home Loan consultant working with a major Nationwide company, and a happily divorced single mom with a home of my own! LOL! I would be happy to "show you the way home!"
2006-07-10 05:30:31 · answer #5 · answered by mzfilly 2 · 0⤊ 0⤋
wait until you get divorced....
That way you can use all the mnoey you squeeze out of your hubby as a down payment!
2006-07-10 05:22:57 · answer #6 · answered by andersonp1964 2 · 0⤊ 0⤋