Divorce often brings some of the most significant changes to a person’s life, including where and how they live. Deciding where to live after a divorce can be tricky and tumultuous, as it is essential to secure your financial future while finding a new home where you can rebuild your life. For many people, buying a house after a divorce can seem overwhelming, but with the proper planning, it is a possibility that could help secure your future. In this blog post, we’ll take a closer look at how to navigate the process of buying a house after a divorce.
Figure out Your New Financial Situation
Many couples find they are financially solvent, thanks to the benefits of two incomes. However, after a divorce, individuals go into one income, which can completely change their standard of living. Before even starting to house hunt, it is crucial to evaluate your finances and draw up a budget that factors in all the expenses that come with owning a home – maintenance, insurance, taxes, utility bills, mortgage payments, and more. Knowing what your budget is and your new financial situation will allow you to calculate your mortgage affordability and create an effective plan to save and maintain the house.
Work With a Realtor
Buying a house after a divorce is more complex than house hunting for a single person. The bottom line is often emotions can sometimes cloud judgment. A Realtor can help keep your emotions in check and bring an objective perspective to the process. They can also find homes that meet your specifications and price range.
Take Your Time
Don’t rush into buying a home right after a divorce. Instead, give yourself plenty of time to get back on your feet financially and emotionally before making any big decisions. The house-buying process shouldn’t be rushed, and it is essential to take your time to find the right home for you and your family. Set a comfortable timeline, and ensure that you’ve adequately researched any homes or neighborhoods before placing an offer.
Explore Your Financing Options
There are various types of loans available for homebuyers, but after a divorce, your financial situation may have changed, making it tougher to qualify for a mortgage. The good news is that lenders understand the effect of a divorce on an individual’s creditworthiness, and they have more flexible underwriting guidelines for divorced couples. Speak to a mortgage broker or a loan officer that has experience with clients who have gone through a divorce. They will help you evaluate your financing options to secure a comfortable mortgage.
Protect Yourself with a Prenup and Homeowner’s Insurance
It never hurts to be extra cautious if you’re already going through an issue as complicated as a divorce. Protect yourself with a prenuptial agreement or an agreement that outlines each party’s obligations against the home should your spouse file for bankruptcy or refuse to make timely payments. A comprehensive homeowner’s insurance policy can also provide financial protection against damage to the house, paying for repairing or replacing your home and belongings.
Divorce is a tough, heart-breaking, and sometimes complicated life challenge that can profoundly affect one’s financial situation. By knowing what steps to take when buying a house after a divorce, you’ll be better equipped to secure a comfortable mortgage and enjoy your new home with peace of mind. Understand your financial situation, work with an experienced real estate agent, don’t rush, explore your financing options and protect your assets with a prenup and homeowner’s insurance during the house-buying process. There is life after divorce, and owning your dream home can be a step toward reclaiming happiness. Contact Strategic Mortgage Solutions today. Their professionals are here to provide experienced guidance as you look toward after-divorce financial freedom. Feel free to walk on in, call 541-275-1148, or, if you’re the introverted kind, email them now and get connected with a CDLP advisor today!