Can I Refinance A House After Divorce in Austin?
We will help you answer this question, “Can I Refinance A House After Divorce in Austin?” Affording a mortgage is not easy for a single parent. If you want to refinance a house after divorce, this article may help you out. We will talk about how to refinance your house before or after divorce. Besides, we will discuss other options that you may take into account if you are unable to refinance due to one reason or the other.
You May be Wondering…Can I Refinance A House After Divorce in Austin?
Yes, you will have to, particularly if your partner doesn’t want to pay the loan. In this case, you will get the loan and the other party will go through the process of buyout. Know that it will take time to refinance and you should keep your emotions aside in the process.
Now, you may be wondering if you could do it.
If you don’t want to refinance or sell your house, you can still take your name off a loan. There are many ways to do so, and one of them is called loan assumption.
What is loan assumption?
In loan assumption, all you need to do is take over the mortgage, thus making the payment regularly just like before. And you won’t need to sell or refinance the house post your divorce.
Remember: loan assumption has some disadvantages. Since you are a single parent, it may be hard for you to qualify. Make sure you go over the necessary documents during the process of loan assumption.
After divorce, another way to refinance the house is to take a mortgage.
What will happen if I am unable to refinance the house after divorce?
Although your ex will stay on the loan, they may file a case against you if you fail to refinance the house.
If you want to become an official owner of the house, make sure you get a new mortgage.
How do I get a mortgage after divorce?
Your best bet is to take the name of your spouse off the mortgage. After a divorce, you won’t be responsible for the financial matters of your ex. Therefore, it’s a good idea to take their name off the mortgage. This will help you maintain your credit score.
This way both of you will pay your own share of the mortgage payment. Aside from cutting down on your debt and raising payments during a short period of time, it will help you get a new loan.
Here it’s important to keep in mind that buying a new house while you are in the process of getting a divorce is not a good idea. Doing so will have a bad impact on your credit rating and you may have to part with a lot of money as well. If the lawyer of your ex comes to know about it, they will try their level best to get that money.
How Do I Get a new mortgage as a single parent?
You may or may not be financially strong after divorce. This is true if you are a housewife. If you want to afford a house as a single parent, below is a guide by Finder that you may follow.
Step #1: Talk to mortgage brokers
By consulting a few good mortgage brokers, you can find a suitable way of refinancing your house after divorce, as they know about several mortgage programs.
Step #2: Look for a state-sponsored program
As a single parent, you can benefit from a state-sponsored program, such as Child Care Benefit, Parenting Payment and Family Tax Benefit A & B.
Step 3: Figure out your income
If you are not good at creating a budget, we suggest that you consult a good financial advisor. You may want to work out the amount that you can set aside for a mortgage.
Step 4: Make more money.
You can make more money in many ways. For instance, you can work from home or rent out one or two rooms.
Step 5: Go For the right loan
If you want to take a loan, make sure you consult a financial advisor. You should get a loan that will be easier for you pay off down the road.
Tips to help you afford a mortgage if you have just one source of income
- Make a bigger amount of deposit as it will help you make lower mortgage payments
- Make sure you borrow an amount that you can easily pay back later on
- Set a lower limit on your credit card preferably 50% as this will help you get a better deal
Advantages and disadvantages of Home Ownership
Advantages:
- You will be independent
- Safe future for your kids
- Tax advantage
- Increased value of your house
- You will be able to pay off your house at the end
Disadvantages:
- In case of relocation, it will be hard for you to sell the house
- You may not afford to repair your house
- The reduction in the value of your house will make it harder for you to sell your house later on
At Zillow, you can try a mortgage calculator. This tool will help you set a budget based on your financial condition, and you can find out how much you will pay in interest. However, keep in mind that the numbers may vary based on the mortgage you qualify for.
During divorce, if you don’t feel like dealing with the house, we suggest that you sell your house to a house buying company.
You should now have an answer to: Can I Refinance A House After Divorce in Austin?
Are you Interested in Selling your house to a Cash Home Buyer in Austin?
If you want to sell your house to a cash buyer, we can help. At REIMAGINE Realty Solutions, we offer reliable services in Austin.
How Does it work?
The answer to “Can I Refinance A House After Divorce in Austin?” is YES! To sell your house, all you need to do is give us a call, and we will make a cash offer on your house within 24 hours. Your house can sell within one week. Even if your house needs to be repaired, you don’t need to worry about it. We buy houses in as-in condition.
You can give us a call on (512) 710-6201 to sell your house within 7 days!