Divorce can be a messy ordeal, and it's one of the most stressful events that people go through. If you're in the midst of divorce proceedings with a mortgage involved, here are some helpful options.\nValue Your Home for Equity\nHome equity is the appraised value of a home minus any outstanding mortgage. If you are considering selling your house, it's best to get an appraisal from a professional first so that both parties know how much money they'll be splitting up or if one will owe more debts than what their share would cover.\nRemoval from the Mortgage\nLeaving your name on a mortgage for a home you no longer live in can negatively impact your credit and debt-to-income ratio. This is because if the bank forecloses, it will negatively affect those numbers in addition to bringing up past debts that are now long gone.\nTo remove your name, you'll need a lender to help. But not all lenders are the same! If you're looking for someone with experience handling different scenarios and making sure they can offer choices based on what is best for YOU (like income, credit score or equity), then talk to us today about refinancing.\nSelling the Home\nIf neither spouse can qualify for the mortgage independently, or no one wants to retain ownership of the home, the property may need to be sold. Selling costs are not insignificant and come with various fees such as real estate agent commissions and repairs. An amicable divorce agreement, written in which each spouse will split any proceeds from sale after paying off the mortgage provides closure for many couples.\nDivorce is a difficult process but there are options for navigating this transition. A divorce attorney, a financial advisor, and a trusted mortgage broker like us at Next Door Lending are here to help guide you.\n

Electronic mortgage closing, or eClosing for short, is a process that utilizes the convenience of an online portal to sign all or some of your documents electronically. Closing itself includes reviewing and signing paperwork in order to transfer ownership between parties involved with a property transaction.\nTypes of EClosing\nThe two types of eClosings are hybrid and full. Hybrid is the most common type, which has a mix of electronic and “wet-ink” signatures and requires borrowers to meet in person with their notary. The other one, full eClosure requires all papers be signed electronically without any need for face time or penmanship skills - just an internet connection!\nWhen using full eClosing you have two notary options: in-person electronic notarization (IPEN), and remote online notarization (RON). RON does away with face-to-face meetings and document signing. All documents are signed electronically while you meet virtually by video conferencing.\nPros and Cons\nOne pro of using an online closing process is that it provides greater scheduling flexibility and convenience by cutting down on the time needed to meet in person or even eliminating it altogether. Another benefit is that if document mistakes are detected, they can be remedied more quickly which helps avoid a slowdown later during the close out process. There's also benefits when you consider closings being completed faster and cheaper with less paperwork involved thanks to digital documents. The con with this type of closure is that it is obviously not the best solution for those who have difficulty with newer technology such as smartphones or computers.\n

Refinancing your mortgage can be a great way to lower your interest rate and reduce your monthly mortgage payment, but it can also impact your credit scores.\nHow Can Refinancing Lower Your Credit Score?\nA couple ways refinancing can lower your credit score are –\nCredit Checks. When you check your own credit or a monitoring service does it on your behalf, that’s considered a “soft inquiry”, and your score is unaffected. When you apply for new credit, however, that’s a “hard inquiry” and your score takes a small hit. If you apply for several different mortgage loans, it can add up and make a difference in your overall credit.\nClosing an account. FICO monitors the age of your oldest credit account and newest account, and averages out the age of the others. If your current mortgage is long-standing, closing it may lower your credit.\nHow Can Refinancing Help Your Credit Score?\nIn some cases, refinancing your mortgage may help your score by getting you out of debt. If you’re stuck with an unaffordable home loan and high monthly payments are preventing you from paying down other debts, a refinance could do the trick. \nFor most, refinancing should have few, if any, lasting effects on your credit score and the benefit can have an overwhelmingly positive impact on your life. If you are not sure whether you should refinance your home, contact one of our loan officers. We’ll happily answer all your questions so that you can make the right decision!\n