Don’t Overlook these 5 Things when Selling or Refinancing your Home After a Divorce

Don’t Overlook these 5 Things when Selling or Refinancing your Home After a Divorce

Going through a divorce is tough.  During this stressful time, I am frequently asked these questions and I wanted to share with you the answers so that you are prepared and know what to expect.  If you want further clarification on any of these feel free to reach out and I would be happy to help.

  1. What is a good Credit Score? You need to see where you are at credit wise.  You can find out your credit score by going HERE.  Loan Officers can work with credit scores as low as 500 but this will affect your loan.  Contact me if you would like some tips on how to raise your credit score. 
  2. Doe Child Support and Alimony Count as Income? Child Support and Alimony are considered income if you have a legal Divorce or Separation Decree that states you are awarded this.  You will need to have a minimum 3-month history showing that you are receiving it.  The caveat for Child Support is that you need to show that you will be receiving it for the next 3 years.  So, if your child is 16 and will you will not receive child support once he graduates or turns 18, then you will not have a 3-year continuance, and this will not be able to count towards income.
  3. Do I need a job? You need a 2-year work history or if you just got back into the workforce, a contract with your salary.  If you have rentals or securities these count as income as well.
  4. How do I remove my spouses name on the Loan & Title? If you have a conventional loan you can call your servicer and let them know that you have been diligent in making the payments and now you are divorced and ask them if they can release liability from your spouse by taking his/her name off the title and loan.  Some will do this, and some won’t.  It is not very common but it’s worth a try. Otherwise you need to refinance.  If you have an FHA loan, you can acquire a streamline mortgage thus removing your spouse off the loan and title.
  5. What is a Quick Claim Deed, and do I need it?  If you are awarded the house, and are not refinancing, but want to sell it either now or later, you will want to have your spouse sign a Quick Claim Deed.  This will make the whole process smoother if they sign it over to you.  Otherwise when you go to sell it, your spouse will have to sign every document that you also sign and it can hold up the entire process, not to mention the headaches that it will cause.  You can get a Quick Claim Deed from your title company or a lawyer.  We recommend a title company because they usually have a lawyer on staff or access to one and the costs are lower than a lawyer.  I would make sure to use them when you go to refinance or purchase. 

Do you have any questions that I can help with?  Feel free to leave your questions below in the comments and I will be happy to answer them.

Landon Moser, Owner Omni Lends,




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