Mortgage Lender Recommendations (Howe: real estate, credit, loan)

[KhadijahMari]

Hello,

Does anyone have any recommendations for a good loan officer who will work with credit challenges? I was referred to a loan officer with DHI, but I never heard back after completing the application. I'm mid-divorce, and our house will be put on the market soon, so I'd like to get the ball rolling.

Thanks so much!

[FalconheadWest]

Unless your spouse is going to sign on the house if it completes prior to your divorce, a lender probably isn't going to pre-approve you until the divorce is final. He won't know what assets you're left with and can't take your word for it. He won't know if there's child support going out, and if it's coming in, you need 12 months history of it so it won't count as income.

You have too many balls in the air for a lender to be able to get a good grasp as to what is going to happen at the end. Wait until the divorce is final and then do something. Texas doesn't recognize legal separation so any agreements already in place between you two probably don't matter at all.

I've worked with a couple of "almost" divorced people, and they ended up having to pay cash to meet the closing date, and then turn around and finance. Unless you have cash, you should wait.

[KhadijahMari]

Oh wow.

Thank you for the information. I am working with a real estate agent who knows my situation, and she sent me to DHI instructing me to get pre-qualified. I was hoping the loan officer could look at my financial status based on my income and credit and proceed.

I'm not sure if I understood the "almost" divorced couples' situation. They had to pay cash to meet the closing date? For the house? Or the closing costs? Do you mind explaining?

I win consider your advice about waiting.

Thank you again.

[FalconheadWest]

Texas is a community property state. If you finance a house prior to your divorce, the spouse's debts affect your debt to income ratios. The spouse's rent/mortgage payment counts against you. Also, the spouse will own half the house, and then you get to fight about the house while your divorce is not final.

However, if you pay cash, without a lender getting in the way, you can write something up between you and your spouse that the house is solely yours and they will not try to contest it in the divorce. You will need an attorney to write something. You might think everything is amicable, but you don't know that for sure until there are more assets to fight about, like a house. It happens all the time, so don't think you'll be the exception. The spouse will, more than likely, need to sign a quitclaim deed immediately upon the divorce being final in order to remove the claim to the property in the future.

Apparently your agent hasn't worked with many people "going through" a divorce. You might end up being her story as to why she will always wait for the divorce to be final before proceeding...

[KhadijahMari]

Ah, I see.

Yes, I thought I was the exception. We both have retained attorneys, and we have temporary orders set in place which address our assets until the house is sold and the divorce is final, so I thought I was in a good place.

I'll have to discuss this further with my agent.

Thank you. I appreciate this information.