You might have felt disappointed with rents and home prices rising over time. Moreover, finding a place to live nowadays seems an impossible goal to accomplish these days. Specifically if you are getting a divorce. Further, finalizing a divorce at a time when the cost of living is increasing can overwhelm you, too. Everything, ranging from groceries to filling up a gas tank, is getting expensive. For the same reason, saving a home post-divorce is also important. We are going to share five tips from Mississauga family lawyers in this post. Sticking to these tips can aid you in saving your next home post-divorce.
5 Tips from Family Lawyers on Saving Your Next Home
Here are our five tips on saving your next home post-divorce:
Review Your Budget and See It Twice:
In order to know how much money you need to have for your next home, you should know about your finances beforehand. The very first step in knowing your finances is to write down your expenses. You can know your finances while looking at your credit card statements and bank accounts. You should have a look at your spending over the last three to six months. Then, you may record your expenses and know your budget at hand with the aid of budgeting software.
While you create a budget, keep in mind you have three types of expenses, including fixed, future, and fun. Fixed expenses won’t change from month to month, and future expenses embrace your savings towards your near future. Further, fun expenses are controllable and include non-essential spending, like dining out or going to a concert. You can adjust fun expenses via your spending on fixed and future expenses. Next, you should review your budget after knowing your possible expenses and review it twice.
Contact a Mortgage Broker to Know Your Eligibility for Credit:
Interest rates are going up fast, and mortgage rules also consistently keep on changing. For the same reason, it is important for you to comprehend your options to finance your future home. It is specifically true post-divorce when you qualify for the purchase on your own. Make sure you know your credit card score before you consider burrowing anything. You should have a credit card score of at least 650 to qualify for a mortgage. Clearing your debts can help you improve your credit card score.
Nonetheless, you can contact a mortgage broker to review your credit score and let you know your overall financial position. It will also aid you in knowing the real picture of what you can afford to borrow for a new home.
Carefully Have a Look at Your Net Worth Statement:
According to Mississauga family lawyers: “It is important to know one’s financial position before meeting with a broker.” You should know about the assets you will take with you after the finalization of a divorce. Plus, you should know the debts you have that will reduce the numbers for you. Plus, you should know the assets and debts you own and owe that you will also carry post-divorce. You should pay close attention to your net worth because it will give you great insight into your overall financial position.
You Can Use Home Buyers Program More Than Once:
If you do not know, you should know that you can use your RRSPs or Registered Retirement Savings Plan twice while you look to purchase a home again. Nevertheless, the key to using Home Buyers Program is to ensure you qualify under the rules as a first-time home buyer. According to the rules, you do not own or occupy a home that you and your common-law spouse own. Plus, you will need to clear any balance that you owe on the previous Home Buyer Program. Further, you can withdraw more from the new Home Buyer Plan, unlike the old program.
Talk with a Trustworthy Advisor:
If you have any thoughts of saving your home post-divorce, you should reach a divorce lawyer to get help. Find a trustworthy advisor to aid you in building your budget and maximize your savings to purchase a home post-divorce.
It is no surprise if increasing home prices and rental prices have perturbed you. Moreover, saving a home post-divorce is also important to peacefully live your life in the future. Besides, the following are five tips from Mississauga family lawyers on how to save home post-divorce:
- Review Your Budget and See It Twice
- Contact a Mortgage Broker to Know Your Eligibility for Credit
- Carefully Have a Look at Your Net Worth Statement
- You Can Use Home Buyers Program More Than Once
- Talk with a Trustworthy Advisor
These are tips you can stick to and purchase a home post-divorce. Lastly, Divorce Fast is a small law firm that offers divorce and family law services in Mississauga, Oakville, and Brampton.