The term "vetting" is widely used in today's political and business environments. But what does vetting mean in the context of divorce mortgage planning?

Understanding Vetting in Divorce Mortgage Planning

Vetting involves conducting a thorough and diligent review of a person, document, property, investment, or solution. In a divorce context, vetting the professional divorce team is essential to ensure they are reputable, knowledgeable, and compatible with your needs. This team can include an attorney, financial advisor, mediator, divorce mortgage planner, and real estate professional.

Vetting Process in Divorce Mortgage Planning

The vetting process for the home and other real property goes beyond simply determining if it is marital or non-marital. It involves a detailed examination of property ownership, tax status, value, and available equity. These elements are crucial to the divorce settlement process and can significantly impact the type of mortgage financing available. This has nothing to do with credit scores and income but rather the specifics of the property itself.

Comprehensive Analysis in Divorce Mortgage Planning

Divorce Mortgage Planning requires a thorough analysis of various income sources, including employment, support income, or even lack of income. It also examines how marital or individual debt is evaluated and distributed during the divorce. A detailed vetting process encompassing the house, income, and consumer debt places divorcing homeowners in a stronger position to make informed decisions regarding their home equity solutions.

Preapproval and the Vetting Process

For decades, potential home buyers and mortgage borrowers have been vetted by mortgage lenders to reduce the risk of default. Mortgage preapproval has long been a standard practice for homebuyers, showing sellers that the buyer has the financial strength to secure mortgage financing and complete the purchase. This preapproval should also be a first step for divorcing spouses before agreeing to refinance the marital home.

Equity Buyout Preapproval

Equity Buyout Preapproval should be required by the spouse retaining the marital home if new mortgage financing is needed. This is necessary for situations where a refinance is required to remove the vacating spouse from the current mortgage or when the in-spouse needs to buy out the equity ownership from the out-spouse in cash form.

Vetting the Divorce Mortgage Planner

Vetting the divorce mortgage planner is another critical step. A Certified Divorce Lending Professional (CDLP®) is a divorce mortgage planner with extensive training and background knowledge. The CDLP® brings immense value to the divorce team during the settlement process because of their unique perspective. Their understanding of the intersection of family law, tax law, real estate, and mortgage financing sets them apart from other mortgage professionals in the industry.

Why Choose a Certified Divorce Lending Professional?

A Certified Divorce Lending Professional (CDLP®) offers specialized expertise and can be a valuable resource for mortgage and real estate needs related to divorcing clients and homeowners. Their comprehensive knowledge and approach ensure that all aspects of the divorce and mortgage process are addressed efficiently and effectively.

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Disclaimer: This information is for informational purposes only and not for the purpose of providing legal or tax advice. Contact an attorney or tax professional for legal and tax advice. Interest rates and fees are estimates provided for informational purposes only and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.

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