Does the Divorce Decree Happen Before the Refinance?
The answer is: it can depend on the circumstances. There isn’t necessarily one required order for every divorce refinance. In many situations, the divorce agreement or decree will spell out what is supposed to happen with the house. For example, it may state that one spouse will keep the home and refinance the existing mortgage to remove the other spouse from the loan. The mortgage refinance then becomes part of carrying out that agreement. But that doesn’t mean you should wait until the divorce is completely finished before talking to a mortgage broker (us!). If you’re going through a divorce and aren’t sure whether you’ll qualify to refinance, we’d be happy to review your situation. Click here to text and schedule a private call.
You don’t want to wait until the divorce is finalized to find out whether you can actually qualify for the mortgage needed to keep the house. If you’re planning to keep the home, we can look at your income, debts, credit, equity and other financial information ahead of time. That can help determine whether refinancing is realistic and what the potential payment might look like. This can be especially important if the refinance will also be used to buy out your spouse’s share of the home’s equity. Knowing the numbers early can give you, your attorney and your spouse better information when you’re working through the divorce agreement.
Can You Refinance Before the Divorce Is Final?
In some situations, a refinance can potentially take place before the divorce is finalized. However, the specifics matter, including who currently owns the property, who is on the existing mortgage, how the transaction is being structured and what the divorce documents say. There can also be situations where the refinance is intended to satisfy an obligation established by the divorce agreement. Because of those variables, this is something you should discuss with both your divorce attorney and us rather than assuming there is one universal rule.
The Important Thing Is to Plan Ahead
The biggest mistake we see is waiting until the divorce is over and then asking, “Now how do I get my ex off the mortgage?” By that point, you may have already agreed to something without knowing whether the financing will work. If keeping the house is important to you, start the mortgage conversation early. We can help you understand what you may qualify for, what the new payment could look like, how an equity buyout might work and whether refinancing appears realistic. The divorce process can be complicated enough. Understanding your mortgage options early can help eliminate one more major unknown.
We’ve worked with individuals in a variety of divorces scenarios. We understand it is often difficult and delicate. Clients and attorneys repeatedly trust us to handle divorce refinances with the care they deserve.
Call JPAL Mortgage today at 616-465-5725; Email us at hello@jpalmortgage.com
Or click here to text and schedule a private call.
Check out our main resource page for “Divorce Refinance” questions.
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