Let’s face it, talking about your finances to a relative stranger is not always the most comfortable experience. You may have made some questionable choices in the past or perhaps your current finances aren’t something you’re proud of, but at GVC Mortgage, we’ve seen it all and we don’t judge. Our team of professionals knows that the best way to make smart financial decisions for your future is to be honest and open about your past and present situations. That’s why we welcome the “sticky” questions, and try to empower you to make sound decisions for what’s ahead.
1. What if I’m unemployed?
A big part of getting pre-qualified and approved for a mortgage is verifying your employment and income. Your lender will look at your debt-to-income ratio, W2’s for the past 2 years, credit score, and more. So if you lose your job before or during the home buying process, it is important to be honest with your loan officer because failing to disclose that you lost your job before closing could increase your risk of loan default and foreclosure.
Depending on your financial situation, you may have to scale back. After a job loss, your loan officer will recalculate your earnings, submit a new mortgage application, and provide you with new options. You might qualify for a smaller loan and get to buy a house in that price bracket. Or, you may still qualify for the same loan amount if you have more than one job or a low debt-to-income ratio.
2. What if I get divorced?
You bought the house together and you planned to stay that way, but life happened and now you need to know what to do. During a divorce, factors like mortgage payments, utility bills, home size, and family living arrangements all come into play. In most cases, you have two options: sell your house and split the profits, or have one spouse buy out the other. Selling and dividing the profits is an easy way to resolve the issue of homeownership after a divorce, but if one partner prefers to keep the house, the spouses will need to settle on a buyout figure.The spouse keeping the home may then decide to use a mortgage refinance to pay the buyout.
3. What if I can’t make my payment?
There are several options available to you if you can no longer afford your mortgage. Contact your loan officer first, because they want to keep you in your house just as much as you do. They’ll be able to help you better understand your financial situation, and will figure out why you can no longer make your payment and whether the circumstances are permanent or temporary. After that, you can explore your options, like mortgage refinance, loan modification, a repayment plan, mortgage assistance programs, forbearance, or short-selling your home before more extreme actions are needed, like foreclosure or bankruptcy.
No matter your situation, if you have mortgage questions of any kind, our team at GVC Mortage is happy to answer them with no judgement. Contact us today at (317)564-4906 to arrange a consultation in the Indianapolis area.