On your mortgage applicaiton, you'll notice a spot for your marital status - single, married, common law, divorced, etc. Here's the information we'll need to know depending on your answer!
Married - Is your spouse going on the mortgage with you? If not, why not? Some lenders will allow one spouse to not be on the mortgage if there's a good reason. In that case, the spouse typically signs a document at the lawyer's office acknowledging you're taking on this new debt.
Married or Common-law - If the spouse is on the mortgage but not going to live in the home with you, where are they living and are they paying rent? The rent amount will be included in the mortgage application.
Divorced or Separated - Provide your divorce or separation agreement so information regarding allocation of debt, alimony and child support (if applicable) may be factored in.
Receiving Alimony or Child Support - When court ordered, this may be included as income on a mortgage application.
Paying Alimony/Spousal or Child Support/Maitenance - When court ordered, this may be included as a liability which essentially deducts it from your cash flow on a mortgage application. I hesitate to use the term "liability" when referencing spousal or child support, but it is how the payment is categorized in terms of your income versus debt ratios.
Some of this information can make, or break, a mortgage applicaiton. We want to put together the best application possible, so having all of the important information up front is key. It's also critical to avoiding a decline at the 11th hour due to lack of information during the initial application. And sometimes this may simply mean adjusting your house purcahse budget to work with your current financial picture. At the end of the day, it's always about cash flow and ensuring your financial comfort in your new home is of top priority!
Got a question? I'd love to answer!
Toll-free in Canada rings direct to my cell 1-844-315-6609
Or shoot me an email at sarahnm@mortgagegroup.com