July 15, 2018

How Can a Mortgage Professional Help With Divorce?

architecture-family-house-front-yard-106399It goes without saying, but I’ll say it anyway…divorces are complicated! There are many questions that an experienced mortgage professional can help answer before you finalize your divorce. For example:

Can one of us afford the family home or do we need to sell it?

Will I have enough income to qualify for a mortgage after the divorce?

Is my credit score good enough to qualify?

Will I have enough assets to refinance or purchase a new home?

Do I have the right job and/or job history for mortgage qualification?

What’s my home worth?

Will the family home appraise high enough to pull out equity to cover the cash I owe my spouse, or do I need to pull funds from another source?

What’s the consequence if my Ex-spouse keeps the home but can’t refinance it into their name after the divorce?

What’s the best loan for me post-divorce?

Attorneys are not mortgage experts and there are many nuances in the mortgage world that can totally derail the perfect divorce settlement. Rainbow Mortgage Inc. takes a very proactive role in assisting our attorney friends and their clients in making sure their post decree housing goals are met. We help you to (1) make realistic decisions about what is possible, (2) understand your loan options, and (3) structure a mortgage loan focusing on your post-divorce goals. We are happy to help you by participating in client-attorney meetings to discuss potential initial options, provide revised options (if necessary) prior to the final signing of the decree, provide an estimate of what your home is worth using our AVM tool (which is the same tool used by lenders to evaluate whether a value on an appraisal is reasonable) and at no cost to you or your attorney, review the decree prior to it being sent to the judge.

Here are a few examples of items in a divorce decree that have caused client issues in the past: (1) The length of time that a person is to receive support payments does not meet lender guidelines to qualify for a mortgage loan. Different loans have different guidelines however, standard guidelines require that a borrower prove that they will receive the income for a minimum of three years following the funding of the mortgage loan. The dates listed in the decree must be carefully monitored and possibly adjusted if the divorce process goes on for an extended period before it’s finalized. (2) Child care expenses are being shared and the decree lists a payment that is to be made monthly to a specified bank account- underwriters will sometimes consider this child support which can throw off a person’s monthly budget causing them to no longer qualify for a loan.

Divorces are complicated but the mortgage doesn’t have to be with the right professionals in your corner. We can offer you the help you need and why wouldn’t you take it? Contact us for a FREE consultation and decree review. We only get paid when you are happy with our service and your loan closes. It’s a Win-Win for you!

David JamisonABOUT THE AUTHOR
David Jamison

David Jamison is the owner and Vice President of Rainbow Mortgage Inc. Rainbow Mortgage, Inc. is a Minnesota based mortgage broker company founded in 1999. David has a long history of working in the mortgage industry. Prior to starting Rainbow Mortgage, Inc., he worked for several large mortgage companies in various capacities such as loan officer, account executive, and as an underwriter.

Through Rainbow Mortgage, Inc., David has focused on assisting divorcing clients determine their best option for a mortgage loan that fits within their unique situation. David is also a mortgage divorce advocate. He worked with one of his primary lenders in conjunction with Fannie Mae and Freddie Mac to get a long-standing underwriting rule on support payments changed to allow more divorcing clients to qualify for home loan financing.

David not only assists the clients with their divorce needs, he also trains divorce attorneys on many aspects of divorce and mortgage. David has provided valuable continuing education credits to divorce attorneys, and provides updates on changing mortgage conditions to allow attorneys to prepare a decree that will accomplish their client’s goals.

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June 30, 2018

Negotiating Better Outcomes in Divorce

Categories: Divorce

Understanding the difference between interests and positions could make all of the difference in helping you negotiate a better outcome in your divorce. Position-Based Bargaining: Most people have a tendency to negotiate by arguing in favor of their positions. In Continue reading…

June 15, 2018

Uncontested Divorce: Should We do it Ourselves?

Have you ever wondered about how to do something that felt daunting but maybe not super complicated (baking a perfect soufflé, building a patio, learning to golf) and decided to follow the advice to “Just look on YouTube!”  So you Continue reading…

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June 1, 2018

Top Tips to help you Thrive Financially

Your divorce is over. It’s time to start sorting through all the things you need to do, to get your financial life in order.  Here are just a few tips to help you thrive financially, as you move into this Continue reading…

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May 20, 2018

ASD, Lockdowns, and Valentine’s Day 2018 – Part 2

April is Autism Awareness Month, the two month anniversary of the Marjory Stoneman Douglas High School shooting, and the 19th anniversary of Columbine.  Why talk about ASD and school shootings in the same sentence?  And why a divorce blog?  I Continue reading…

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April 8, 2018

Counseling at Law (part 2)

Last time I wrote about some of the realities of the divorce process and some of the different ways by which a final divorce decree can be created.  It may have come as a surprise to learn that a couple Continue reading…

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March 18, 2018

Counselling at Law

I am a Counselor at Law. I have been for more than 37 years, although I’m not sure how valuable my counsel would have been then. Today, most of the questions I’m asked center around divorce. -My wife/husband wants a Continue reading…

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March 4, 2018

ASD, Lockdowns, and Valentine’s Day 2018 – Part 1

OK – this has nothing to do with divorce – or maybe it does. Valentine’s Day.  Yes, I know, it was two weeks ago.  And for people going through divorce, Valentine’s Day was perhaps just another day.  On the other Continue reading…

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February 22, 2018

Unbundled Divorce: Getting just the right amount of legal help

Categories: Collaborative LawDivorce

There is a “new” way of going through divorce that puts clients in charge.  It’s called “Unbundled Legal Service” and it means that the clients get to have legal advice without having the lawyers take over the full case.  This Continue reading…

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February 3, 2018

Should Your Spousal Support Increase with the Cost of Living?

Spousal support that lasts more than a couple years may be subject to cost of living adjustments (COLAs).  This is negotiated as part of your divorce settlement. As the cost of living goes up, spousal support can increase as well, Continue reading…

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