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Ask Dr. Don
By
Don
Taylor,
Ph.D.,
CFA
•
Bankrate.com |
Buying the ex's share of the
house
Dear Dr. Don,
I am going for a divorce, and would like
to buy out my husband from the house. I wondered what kind of loan
I would need to take. I would need at least $90,000. Could you advise
me?
Marie Mortgage
Dear Marie,
The financial gyrations that take place in a divorce can
be as complex as the emotions that lead you to seek divorce. However
hard it may be, it's important to work together to keep both your
credit histories clean so you can move on and build new lives. That
means no late payments and no missed payments on the bills.
Close your joint accounts to new charges and apply
for credit individually. (This is a more complex issue in community
property states.) The Federal Trade Commission has a guide
on credit & divorce that is required reading for any couple
contemplating divorce.
You want to keep your credit history as clean as possible
if you're applying for a $90,000 mortgage in your own name. Get
a copy of your credit report and credit score to see how you stand.
I like the Score Power™ report because it gives you a FICO
credit score and an Equifax credit report for $12.95. Correct
any errors in the report.
You'll also need to have the income available to qualify
for this size mortgage.
Bankrate's "How
much house can you afford?" calculator will help you lay
out your financial situation to see if you can qualify for this
size mortgage.
If you concentrate your mortgage shopping in
a three- to four-week period, multiple loan applications won't hurt
your credit score. That's because it's apparent that you're comparison
shopping for a loan and not buying multiple homes. Speaking of comparison
shopping for loans, the best place to shop
rates in your market is on Bankrate.
-- Posted: Aug. 1, 2002
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