If you are considering a divorce, you may want to purchase or sell real estate prior to filing for the divorce. If the divorce is filed, lenders may not approve the loan until after the divorce is finalized and the divorce decree is entered by the Court, or a legal separation agreement is signed by the parties and entered with the Court. The reason for this is contingent liabilities, i.e. debts to be attributed to you as a result of the divorce which would affect your ability to qualify for a loan.

Even after the divorce is final, and the obligation to pay has been assigned, the mortgage will remain in your name and on your credit report until the home is sold or the loan is refinanced. So, if the ex-spouse is delinquent on a payment, it could adversely affect your credit score, even though the payment is no longer your responsibility.

If you are looking for guidance on getting a mortgage while going through a divorce, give us a call, we can help.