Getting a divorce is not fun for anyone but there is always something else that adds to the frustration. Kids, job, transfer of funds and property, etc.. No one likes a divorce but when it's all said and done, you may want to become a homeowner again, that is, if you are the one that lost the house.
So what are your first steps?
Well, it's important to know where your finances sit. Did your credit history drop after the divorce? It's important to check your budget, your credit and talk to a lender about a pre-approval letter. See if you CAN afford to buy again. It may be a smaller house but it will be all your own.
You don't want to buy a house you can't afford either. It's not a good idea to be "house poor" regardless if you have a house of your own. You don't want every penny going into the house. It's important to set up an emergency fund for yourself in case something breaks or you need car repairs or unexpected expenses.
Think about what's really important. Do you have kids you will be supporting? Be realistic about what everyone needs including you. Do you need to be in a certain school district? Have space for pets and kids? Extra rooms? Easy access to bus routes or friends for their help?
Speak to many lenders.
Just because one lender gave you a price doesn't mean it will be the same as another lender. Talk to multiple lenders and tell them your story. You may get a great deal from one lender that no one else offered. Some lenders specialize in specific loans and programs for divorcees and single borrowers.
Read more: Real estate and the single woman
Your income will certainly matter when it comes to buying. Single moms tend to have a tougher time due to income but it's not impossible. You'll never know if you don't check and if you can't currently buy, a great lender will give you a timeline of steps you can do to either increase your credit score, save money or both.
Can you remove your name from the initial mortgage? If so, this could increase your credit worthiness. You're no longer married and attached to a past property and this may work in your favor.
Take your time. Don't rush things just to get into a new house. I know moving and packing can be a pain but don't do it just because you want to avoid that. Renting for a year may be the best option to regain control of your finances and have a better handle on your money and your emotional state.
Divorce is not fun but building back your credit and finances will take time. A house is a stable investment for you and your family but don't rush it or you may find yourself in a bigger mess in the future.
Call me today for more information on buying after a divorce. We have excellent lender resources to put you in touch with to better your financial state.