If you have just gotten divorced, you might want to move out of your Florida home and start fresh. Buying a new house is one of your options, but it helps to consider a few factors before you take action.
Keep your income in mind
A major factor to consider when planning to buy a house after your divorce is your income. As a newly-single person, you no longer have the combined income you enjoyed with your former spouse. This can make a significant difference in being able to afford a new house. If your income is too low, you might need a cosigner. Depending on the terms of your divorce, you might be the one paying alimony and child support. In that situation, you’ll have to deduct those amounts to determine your debt-to-income ratio to see if you can qualify for more when getting a mortgage.
Show that you’re responsible with debt
Showing potential lenders that you make timely payments toward your debts can go a long way. Lenders want to know that you can afford to pay your new mortgage when you buy a home. This can include anything from credit card or auto loan payments to support ordered in your divorce decree.
Get off the old mortgage
If your name was on the mortgage of your marital home, you will want to remove it. This usually involves a quitclaim deed sent to your lender. They may be willing to remove your name and leave it in your spouse’s name only if you include a copy of your divorce decree with the deed.
If your mind is set on buying a new house, getting pre-approved could help you learn your options. It gives you the chance to know where you stand in terms of what you can afford.