We start off our long-term relationships with the best of intentions. Marriages are meant to last forever and mortgages are designed to end in full home ownership after 30 years. Both of these commitments can end prematurely, of course.
You can sell your house, for instance, and relieve yourself of a mortgage that way. Some unfortunate people wind up losing their homes because of financial difficulties, and some even pay off their 30-year loans early. With marriage, the early end is typically in divorce, of course. A recent Forbes article described how those two kinds of long-term commitments – marriage and mortgage – can be linked.
Your status as married, divorced, single or unmarried but in a long-term relationship affects your ability to qualify for a mortgage, Forbes notes.
If you are married, for instance, likely makes your prospects of landing a mortgage better. You are also likely to see the size of the loan offered increased. After all, you are more likely to have more than one income. It should be noted that if your spouse has bad credit, that can have a negative impact on your ability to secure a loan.
You might have to downsize your dreams, in that case, and get a smaller house and loan. You might also have to save up for a bigger down payment, the publication says.
In the case of divorce, Forbes says splitting up a jointly owned house can damage both your credit and your former spouse’s credit. Before you do that, speak with your family law attorney about creating a viable strategy to avoid self-inflicted credit damage.
An experienced Dallas family law attorney can help you resolve property division disputes and other financial matters so that you are able to start your life anew after your divorce.