Why talking with a lender before your divorce settlement is finalized is essential!

Usually, lenders come on board after the divorce is finalized, limiting how a lender can help you when you are looking for the next steps in your real estate. Speaking with a lender before your final divorce settlement is beneficial.

Cindy Scobee, Loan Officer of Team Scobee with Evergreen Home Loans joined us today to talk about why talking with a lender before your divorce is finalized is so important. Too many people wait to evaluate their options until after they are divorced, and are not happy with the options they have. These outcomes are preventable, and just take conversations pre-divorce to set you up for success after your divorce is finalized.

Whether you plan to buy your partner out of the family home, sell the house, purchase a new home, all of these scenarios will require education from a lender to ensure that your divorce settlement sets you up for success post-divorce.

The truth is that most people don’t know what life looks like post-divorce and are scared to meet with professionals and end up with settlements that are not beneficial for them long-term post-divorce. They’re concerned that meeting with a lender or real estate agent means they must sell the house or will be forced down a path they’re not ready for. That’s not the case.

Your lender should also be willing to talk with your attorney. You deserve to have a team that works together on your behalf to make sure everyone is on the same page, advocating for the same outcome for you. Letting your lender know what’s going on is helpful, but the truth is that your home buying needs will be focused on you purchasing this home.

A lender will run your credit and talk with you about your income and determine what may prevent you from moving forward independently. You might need to figure out who’s responsible for what balance and who will assume which debt. Things like this will be taken back to your attorney to address these in the divorce settlement.

You’ll need to think of things like, “how do you qualify for a home if you don’t have income?” Maybe you’ll be receiving spousal maintenance or child support but don’t have employment income. These things need to be considered. If your attorney knows these things, they can advocate for you to ensure your income is such that you will be able to qualify indecently for a home after your divorce is finalized.

Your lender is there to educate you, talk about your options, and help to support you in moving forward. There is no commitment to having a conversation about what it will take for you to make the right decisions on your homeownership journey.

Don’t be afraid to ask questions and figure out the right settlement for you and your life post-divorce.