With about 50 percent of marriages ending in divorce in the U.S., it’s shocking that divorce mortgage planning isn’t more widely utilized. Among the countless stressors that accompany divorce, one of the most critical is taking care of the basic need for housing security and figuring out the best living situation for everyone involved. 

Perhaps you would like to keep your marital home and buy out your spouse’s share of the equity. Maybe you’d prefer the opposite – have your spouse pay you for your share of the existing home so you can find your own place to live. Or, you both decide that selling the house and renting separate homes  is best for now. The first two options require getting your own  mortgage following the divorce. This takes planning.

There are no right or wrong answers regarding how to manage your home in the divorce, only options to consider that will make everyone – you, your spouse, and children – feel comfortable and safe. One reason that some people consider renting a home is fear of the unknown. Buying a home or refinancing to stay in the current home can seem intimidating because of financial uncertainties and the process of getting a mortgage after divorce.

Working in the mortgage business for the last 25 years, I am very familiar with the fears both men and women have when it comes to getting a mortgage, especially as a newly single person following a divorce. The process can seem daunting, complicated, and difficult to understand, and it’s common to have doubts about qualifying for a mortgage for the home you really want.

Taking stock of your assets and expected income so you can know your options during the negotiations and before signing on the dotted line is critical for easing your fears. You can empower yourself with knowledge that will help you negotiate more effectively and ease the associated anxiety.

As a Certified Divorce Lending Professional (CDLP), I consult with my clients’ financial advisors so I can present you with clear and understandable options. This gives you a good indication of what the options look like prior to the mediation or negotiations so you can prepare to base your decisions on facts instead of emotions.

In some ways, getting a mortgage after divorce is no different from applying for a mortgage any other time in your life. Regardless of the situation, the mortgage process may seem lengthy and complicated. Your lender will ask you a lot of questions and ask for several documents. It’s important to have trust in that person, but also insist that each step is explained to you clearly. Inevitably, you will get an education throughout the process. 

At Vesta, we want our clients to feel empowered. In the field of divorce mortgage planning, it is important to work with clients in order to earn their trust, and this is what I always aim to do. The goal is always to provide all of the information needed so that decisions can be made based on choices and scenarios worked out in collaboration with your financial planner, divorce attorney, and/or mediator.