If you are legally separated or already divorced, it’s natural to want to buy a new home in New Jersey if you have the means to do so. However, you need to have proper documentation and carefully consider how much you can afford before proceeding.
As with any property you may have bought prior to your divorce, you’ll need to provide your prospective lender with proper documentation. You’ll need to show payment history for various accounts, the amount of savings and other financial information. However, you should remain aware that you’ll also need to present documents related to your separation or divorce.
You should also free yourself from debt associated with your former home, either by selling it before you search for a new one or showing that a sale is already in progress and you’ll have funds available to purchase a new residence. Reestablishing your credit history as a single person is also a crucial consideration as a good credit history will get you a better interest rate.
Determining your post-divorce assets is crucial
Although you may be anxious to get into a residence that is entirely your own, doing so before your divorce is finalized can be difficult as some property division issues are often complex. Assets that you owned before your marriage will continue to be yours, but most wealth accumulated during the time you were together will require splitting.
As divorce is stressful, it may be a better idea to concentrate on one issue at a time instead of jumping headlong into a buying situation that may not be practical. Working with a financial advisor in addition to your legal team can help you find practical solutions.