When things don't go as planned...
- PostedFebruary 25, 2019
OK, today we’re going to talk about an unfortunate but common challenge that many homeowners face…
You see, when you and your partner get together and jointly buy a house, it’s only natural to assume everything will be “happily ever after”.
But the sad truth is many relationships eventually end in separation, and that can have a dramatic impact on your mortgage.
Here are some potential scenarios to consider:
Selling the property is sometimes the easiest way to put your joint debt behind you.
If you decide to keep the house, you’ll probably have to buy out your partner’s share.
If this requires refinancing or a second mortgage, keep in mind that you’ll have to qualify for financing based on your individual income, which is usually substantially less than the joint income you used the first time.
Let’s say you decide to let your partner have the house and get yourself taken off the title. Keep in mind that lenders still consider you jointly responsible for mortgage payments, so if your partner misses payments, your credit score will suffer too.
What you need is a letter of release from your lender. This will make it easier to qualify for financing when you set up a home of your own.
Child support and alimony payments can impact your ability to qualify for your next mortgage.
If you receive these payments, that amount can generally be added to your total income when you apply for financing.
If you’re paying child support and/or alimony, that amount is generally deducted from your total income and limits the size of mortgage you can qualify for.
For more information please call!
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
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