Tips for qualifying for a Mortgage while going through Divorce
1. Get it in writing – make sure payments for alimony and child support are agreed to in writing and ideally continue for at least 3 years. You’ll need that consistency use the income for loan qualification
2. Establish payment history – alimony and child support typically has to have been received for at least 6 months before it can be used for income qualification.
3. Document it – make sure that payments for alimony and child support are not mixed in with other funds. Ideally they are paid by check or deposited separately into your bank account without mixing them in with other deposits so that can be easily documented.
4. Keep your credit clean – divorcing parties sometimes fight about who is paying which bills and as a result, neither pays the bills. A damaged credit report takes years to mend and missed payments will preclude you from qualifying for a mortgage, so keep all payments on time and reconcile later.
5. Don’t cling to the house – So often one party has an emotional attachment to the house and demands it as part of the divorce. They then take a mortgage too big to handle in a house they are not fully utilizing. It’s a tough and emotional call, but consider downsizing and taking a more manageable mortgage.