Separation Agreements For Mortgage Qualifications
Mortgage qualifications can become more complicated if you are separated. Banks often ask to see a mortgage qualification separation agreement before approving you for a mortgage. It is likely that a bank will require a mortgage qualification separation agreement if you are married but separated from your spouse and you are either:
- buying your spouse out of the matrimonial home or
- purchasing a new home.
The lawyers at Kahane Law office in Calgary, Alberta are able to help draft your mortgage qualification separation agreement quickly and economically.
Why do Banks Want to See a Mortgage Qualification Separation Agreement?
Mortgage qualification separation agreements establish better financial certainty after separation. Your lender will most likely want to know what child or spousal support obligations you have as well as assessing the property and debts you will be taking on. If you hope to claim support payments you receive as part of your mortgage application, then a mortgage qualification separation agreement can help. This will give the bank a better picture of your financial situation and help them determine whether you qualify for a new mortgage. Although you may have a verbal agreement with your spouse, a mortgage qualification separation agreement gives the bank the assurance that it is a binding agreement.
What is Included in a These Agreements?
Generally, separation agreements for mortgage qualification will normally set out the property that each person will keep and the debts that each party will be responsible for. If you have children together it will likely also deal with custody, access and support arrangements for your children. Additionally, spousal support is commonly addressed, whether there is an obligation for one party to pay support or not. Mortgage qualification separation agreements are still binding agreements. If you decide to proceed with a divorce, the terms of the separation agreement will often form part of the divorce order.
Why Lawyers Are Essential in This Process
Many people just sign off on any agreement when one party is trying to qualify for a mortgage. The may, at the request of a source or third party, sign off on what they think is just a mortgage formality. BE CAREFUL: People often waive very important rights with these types of agreements and it is essential that a lawyer inform you of the consequences of signing any legally binding documents. Never assume that anything you sign is “just for” or “can only be used for” a mortgage qualification. The consequences of not having legal advice can last for many years or lead to expensive and expensive matrimonial litigation.
When should I Look into Having a Separation Agreement Prepared?
If you and your spouse are in agreement about how you will divide property and debts, spousal support and child custody and support (if applicable) then going ahead with a mortgage application separation agreement is a good starting point. Learn more about regular separation agreements that can be prepared by our lawyers. With a separation agreement in place you will be able to access equity from your matrimonial home and your lender will be able to quickly determine whether you will be able to carry the new mortgage on your own.
Having an Agreement prepared is something you will want to consider ahead of time so you are not rushed into completing a mortgage application separation agreement. Although we can usually prepare these types of agreements quickly, it is a process and there is no guarantee as to whether your spouse will sign and, if they do, how quickly they will sign mortgage qualification separation agreement. DO NOT SIGN any contract to purchase a house until all the lenders conditions have been met and you have a signed mortgage qualification separation agreements.
Why use Kahane Law Office?
Kahane Law Office has lawyers that specialize in real estate law as well as family law. This means that the same lawyer can assist you throughout the process and provide a more seamless service. Both services will have flat rate fees so you will be better able to make an early informed decision. To schedule a appointment with one of our mortgage qualification separation agreement lawyers to discuss your entitlements, obligations and drafting an agreement, please contact our experienced team at Kahane Law Office. Connect today. You can reach us toll-free at 1-877-225-8817, 403-225-8810 locally in Calgary, Alberta or email us directly here.