If you've recently separated from your partner, you may be wondering if you need a Separation Agreement to get a mortgage, and if it's absolutely necessary.
Here is the information you need.
When obtaining a mortgage loan, lenders need to assess your liabilities, and that it includes any support payments like child or spousal support. Without an official Separation Agreement, there is no way for a mortgage lender to ascertain all of your liabilities. Spousal and child support are monthly financial obligations that must be taken into account when qualifying for a mortgage, as they could potentially disqualify you depending on the amount.
After a separation, you will need a copy of your finalized Separation Agreement detailing the division of assets, responsibility for support payments, and the payment amounts.
It is important to have this document prepared and finalized promptly after a separation to prevent any delays in closing your mortgage transaction, particularly in a spousal buyout situation or when purchasing real estate.
If you need guidance on this process, I would be more than happy to help you.
Sarah Colucci, Mortgage Agent
Sherwood Mortgage Group, Broker 12176
Direct: (647) 773-4849
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By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929