Divorce is never easy, especially when it comes to dividing up assets such as a shared home. Figuring out how to divide a house during a divorce can leave you feeling dizzy and confused, but that's where Chris Waterman, the Denver Mortgage Guy, comes in.
When a couple divorces and one spouse wants to keep the marital home, they will typically need to "buy out" the other spouse who is leaving the home. This usually means that the spouse who is keeping the home will need to give a portion of the equity of the home, in cash, or other assets, to the departing spouse. During this process, they will remove the other spouse from the mortgage and title of the property. This is commonly known as a "divorce refinance."
Basically, what happens is that the spouse who wants to keep the house will need to apply for a new mortgage in their name only. They will need to meet the lender's income and credit requirements and demonstrate that they can afford the new mortgage payments. Then, they will need to provide documentation such as income statements and tax returns, pay closing costs and fees, and work with the lender to come up with a plan for paying off the previous mortgage.
It's important to note that a neccessary part of this process is to remove the ex-spouse from the mortgage, which can only be done through a refinance. But it's not just a matter of removing someone's name from a loan. Along with that, the spouse who is leaving the house will need to be removed from the title of the property, as well.
When it comes to refinances, working with a local mortgage broker like Chris actually has a slew of benefits over working with traditional banks, credit unions, or other lenders. Not only does he have a wealth of experience and knowledge at his fingertips, but he also has access to a wide variety of loan programs and rates, meaning that he can help you get the best possible deal for your specific situation.
Contact Chris today at chris@denvermortgageguy.com or visit his website at http://denvermortgageguy.com to learn more.