I commend you for being proactive and looking at all of the options when you and your family are going through such a difficult time. In the event you decide to sell, give me a call. I will be happy to help. I can be reached at MelissaP@hpw.com
Hopefully we can refinance while separated for a year, then if things do work out file for an official divorce. Then, I will look to sell the house and find something more suitable for me and the kids. It truly hurts my feeling when I think about having to pay alimony just because I make more. Feel as though I've been paying this for years now.
I feel that there is still a couple of facts that you might benefit from knowing. Kelly references getting a Free Trader Agreement; that works if you are trying to sell the home and is important to have in place prior to refinancing. This is because you do not want her to have a marital interest in the home after you refinance. This is one more reason you need to speak to an attorney to make sure that this is done the best way to protect your interests. Based on my the past experience of my clients I have been told the only way to remove your wifes name from the loan is to refinance the loan. So, Andy's information that he is sharing is very important to know.
Best of luck!
When you separate after being married you will need what is called a â€œFree Trader Agreementâ€ signed by your spouse in order to buy a home without having to put her on the deed. This should be done first before looking for a home. This will also apply to refinancing your existing home in your name only, which is similar to buying your home from yourself and your spouse as joint owners.
Also, you will need a recorded separation agreement that states what you are obligated to pay in alimony, child support, separate maintenance, etc, if anything, because the underwriters will ask for this...so all these details must be ironed out prior to being pre-qualified by a mortgage professional for a new home and mortgage or a refinance of your existing home.
Your spouse's credit score is still very good at 700. You will not be affected by her score if you buy a car and put the car in your name only. Make sure you buy a house or refinance first before buying a car because you can qualify for much more without a recent car loan on your credit report.
Should you have any additional questions about this, or any other real estate or financing-related matter, please do not hesitate to contact us! We're here seven days a week to assist you.
P&I on a $238,000 conventional loan (assuming you have 20% equity) at an interest rate of 3.5%* fixed for 30 yrs. (*NOT Saying you wouldn't qualify for a better rate or a lesser rate) has principle and interest payment of $1068.
With your income of $6666 monthly, your front end DTI is 16% and easily within the guidelines of Approvability.
You may want to add the remaining monthly debts you are obligated to pay so that you can calculate the back end DTI ratio to see if you can "fit" a new car payment in there but without knowing more specifics; it seems you'd be fine--in theory, because this doesn't account any possible separate maintenance payment agreements that could be the result of a legal separation or divorce.**
To begin with you'd have to discuss putting the mortgage in your name only with the lender and it may help to have an attorney involved if this is the direction you decide you want to go. Financing cars is much easier than homes and unless you've got other significant debt that your servicing I doubt you'll have any problem purchasing a car 11 months+/- from now whether you move the mortgage into your name or not.
You haven't mentioned whether you're going to start having to make support payments to your wife and or for any children and if you are these payments will need to be factored in.
I'm sorry to hear you and your wife are going through some challenges, and the best advice I could offer would be to sit down and have a conversation with an attorney/accountant to figure out the best strategy to accomplish what you and your wife want.