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By Kristi Sauter

Pro Tips by Kristi Sauter

Life Changes: There’s a mortgage for that

Nov 22, 2021 | 9:31 AM

If there’s one guarantee, it’s that there are no guarantees in life. Things happen, and that’s okay and that doesn’t need to have a negative impact on your ability to purchase a home or continue to afford living in your current home. Even though we can’t completely prepare for life’s unexpected events, we can adapt and make sure that we find the right mortgage product to suit our current situations.

An unexpected life event could be an accident or a necessary home improvement or even a change in marital status. While some may require a closer look at the type of mortgage you get, the other one just needs a bit more documentation to get the ball rolling. These situations are realities, but it’s good to know that during these stressful times home ownership is still very much possible and maybe even your mortgage can help you out.

An Accident or Necessary Home Improvement

This isn’t something that anyone likes to think about, but the reality is this can happen, and if it does happen, then what can you do about it? We don’t want a surprise to leave you in a financially crippled position, but are you aware of the options available to you? When shopping for a mortgage it’s always best to understand what the different types of products offer and if some have resources that might come in handy. A HELOC (Home Equity Line of Credit) for example, is an excellent product to consider if you have equity built up in your home. This is a secured line of credit, and interest rates are much lower than compared to unsecured loans. It is also revolving, meaning you can continue to use it, pay it down and use it again for as long as you own the home.

This can come in handy in the off chance you might need access to capital to make some necessary home improvements, or as a response to an emergency, and the best part is you get to take advantage of the low interest rates mortgages have compared to other credit products like credit cards or traditional loans.

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A Change in Your Relationship Status

Now this life event works a little different. If you have had a mortgage with your previous spouse and are looking to qualify for a new home on your own, the most important thing to remember before even trying to get pre-approved, is that you must have a signed separation agreement. This is important when it comes to things like pulling credit and understanding existing assets. Being divorced or going through a separation does not mean you cannot purchase a home; it just means that you must get a few more things organized first. Mortgage experts are very valuable resources through this process. We can work directly with your lawyer so that we obtain all the necessary documentation to keep the process running smoothly.

Overall, the final takeaway is life can be messy, but your mortgage and home ownership goals don’t have to be.