Refinancing Is Often a Must After Divorce: Can You Qualify?

When your husband told you he wanted a divorce, you said you wanted to keep the house: you raised your children here, you don’t want them to switch schools, and you live near your work. Basically, you don’t want to move. Although he was hesitant at first, he eventually agreed to your terms.

Now that the divorce is about to become final, it’s time to take action. You’ll have to buy your husband out of his share of the equity in the home so that it reflects your sole ownership. In order to do this, you’ll likely need to refinance.

Can You Qualify for the Loan on Your Own?

Refinancing isn’t always easy; you’ll need to meet certain criteria in order to qualify. Do you have what is necessary?

  • You’ll need good credit. In order to get refinanced, you’ll need to have a good credit score. If you don’t have credit because you relied on your spouse’s, you may run into trouble. You may need to spend time establishing credit or repairing yours before you can buy your ex out and become the sole owner.
  • You’ll need a passing debt-to-income ratio. You’ll need to prove that you are able to afford the home on your own. This is achieved through a debt-to-income ratio. You’ll have to show that your income is higher than your debt and that you are able to make the mortgage payments. The bank won’t agree to give you a mortgage if it thinks you will default on your payments, so it will need to know for sure you can afford to do this on your own.
  • Alimony and child support don’t count. Typically, child support and alimony won’t count towards your income. This means your paycheck from your place of employment alone will have to cover the mortgage, as well as any other debts you have, to satisfy the bank’s requirements.

Have Questions About Your Divorce? We Can Help!

Our legal team at Tavss Fletcher has lots of experience helping people in the Norfolk area with their divorces. Contact us today by filing out our online form to speak to a legal professional about your situation.

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