“If your credit score going in was better than your spouse, the divorce can actually benefit you from a financial standpoint. You’re no longer responsible for the other person’s debts.” ~ Kevin Graham, Getting a Mortgage After Divorce, Quicken Loans
For many women, one of the most freeing, and most terrifying aspects of a midlife divorce is becoming financially independent from their wasbands. Chances are, if you are going through a divorce, then you will soon be embarking on a move. In his article, Graham states: “If there is a positive out of the situation
[a divorce] it is a fresh start.” Unfortunately, this “fresh start” can be a complicated and overwhelming process if you aren’t informed about what steps to take.
When deciding to buy a house or refinance your current mortgage, you want to start by taking a look at your income. There are more factors to consider than just what you are making at your nine-to-five job. Child support, alimony, assets and your debt-to-income (DTI) ratio can all play a huge role in what you are or aren’t able to qualify for.
Credit is another important component to consider. You will need to focus on establishing credit in your name as quickly as you are able, because often any credit that was accumulated jointly will be lost with the divorce. “Once you’ve established a history of paying your bills on time over a few different accounts, home loan approval should be easier.” So, get a credit card or two and pay them off each month to establish a good credit score.
Though it is crucial that you are well informed to plan your financial future, it can be a liberating and empowering process! Don’t look at finding your new home as a scary process. Instead, embrace it as one giant leap forward on your new adventure!
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