Step by Step Guide to Help You Through Separation
Dissolving a marriage or partnership is one of the most difficult things people face in their lives. We hope the below step-by-step guide will help make the process as easy and stress free as possible.
- Talk to us – Your Advanced Mortgage Professional will begin a no fee/no obligation application to review affordability and ensure that you can qualify to carry your home alone.
We will require the following:
- Income, Approximate mortgage amount, Approximate home value, rough outline of separation terms (are you entitled to support or will you be providing support). From here, we can establish affordability and, once we establish it, we wait for the next step to be completed.
- Separation Agreement – Often overlooked but is a critical place to begin. Nothing can be done until we have at least a draft of the separation agreement outlining division of assets and support payments. Once we have a draft of this agreement, we can begin to prepare a formal mortgage application for submission. Please keep in mind that we are able to obtain an approval with a draft of the agreement but you will have to have a signed and legal agreement in effect prior to your possession.
- Appraisal – Once the mortgage has been conditionally approved, The lender will require an appraisal to officially confirm the value of the home. From this value, we are able to finance up to 95% of the value of the home (as long as your income will qualify you for this amount).
- Solicitor – Once all conditions have been met, the paperwork will be sent to a lawyer for singing. They will contact you once your package is ready for signing is a good idea to reach out to them beforehand to ensure they are working on your file.
Blind Spots to Watch Out For:
Be aware of any prepayment penalties associated with your existing mortgage. These fees can impact the overall payout of your existing mortgage and should be factored in when dividing equity.
Ensure that all legal documents related to the separation, property division, and refinancing are accurate and comprehensive. Any oversight in the legal documentation can lead to complications down the road.
Consider all potential costs involved in the refinancing process, including appraisal fees, legal fees, and closing costs. Budgeting for these expenses will help you avoid any financial surprises.
Household bills: You are now 100% responsible for all bills related to the home so build a budget and stick to it!
Our hope is that the above will help you alleviate as much stress as possible while going through a very difficult time in your life. As always, please reach out to your advanced mortgage professional and let us help you make sense of your mortgage.
Contact Us with any questions? We are here to help you Make Cents of Your Mortgage!