Separation

As soon as possible. Contacting us before the Separation Agreement is complete can give you and your lawyer a better understanding of how decisions made during those negotiations will impact your mortgage options once the agreement is finalized. We can help eliminate some of the uncertainty about your future with an early discussion.

As you move through negotiations and early draft Separation Agreements, keep us in the loop. We can advise how different options will impact your mortgage borrowing potential. We may also be able to recommend strategic alternatives or specific language in the Separation Agreement to ensure you are best positioned for your next real estate purchase.

In almost all cases, yes. It shows separation of assets and provides proof of the legal obligation of both parties to provide child or spousal support – which are key items when determining how much mortgage you will qualify for on your new home. There are exceptions, so contacting us to discuss is always worth it. Having access to so many different lenders can create options that don’t exist with your bank.

The amount of mortgage you qualify for is determined by comparing your financial obligations to your gross income. If you are required to make support payments, they become part of your regular monthly payments in that comparison. If you are receiving child or spousal support, they can become part of your monthly income. This is both why the lender requires the signed Separation Agreement and also why the sooner we start talking, the more you will understand how support decisions affect your home buying power looking forward.