Read Time: 7 minutes
Going through a divorce is tough enough, and now you're thinking about buying a home on your own? I get it. It feels overwhelming, but here's the thing: thousands of people successfully buy homes after divorce every year, and you can too. You just need to know where to start.
Let's walk through the essential first steps that will set you up for success, not stress.
Step 1: Get Real About Your Finances (This Comes First, Always)
Before you even think about scrolling through Zillow, you need a crystal-clear picture of your financial situation. This isn't about being pessimistic, it's about being smart.
Calculate your true monthly income:
- Your salary after taxes
- Any spousal support you receive (not what you pay out)
- Child support you receive
- Any other reliable income sources
Then list your monthly expenses:
- Current rent or living expenses
- Car payments and insurance
- Credit card minimums
- Student loans
- Child support or spousal support you pay
- Groceries, utilities, phone, etc.
Pro Tip: Use the 28% rule as your starting point. Your housing payment (including mortgage, taxes, insurance, and HOA fees) shouldn't exceed 28% of your gross monthly income. But honestly? After a divorce, you might want to be even more conservative and aim for 25%.
Step 2: Make Sure Your Divorce Is Actually Final
This might seem obvious, but you'd be surprised how many people try to house hunt before everything's legally wrapped up. Lenders need to see that final divorce decree, not just separation papers.
You'll need these documents:
- Final divorce decree signed by a judge
- Property settlement agreement
- Any custody agreements (if applicable)
- Documentation showing you're no longer on your ex's mortgage (if applicable)
If you're still in the middle of divorce proceedings, that's okay. Use this time to get your finances organized and improve your credit score. The house will still be there when you're ready.
Step 3: Check Your Credit Score (And Don't Panic)
Your credit score is going to determine not just whether you can get a mortgage, but what interest rate you'll pay. Even a difference of half a percentage point can mean thousands of dollars over the life of your loan.
Here's what to do:
- Pull your free credit report from all three bureaus
- Look for any accounts that should have been removed after your divorce
- Dispute any errors you find
- Pay down existing balances if possible
If your credit took a hit during the divorce:
Don't worry, this happens more often than you think. Focus on making all payments on time going forward, and consider talking to a credit counselor if you need help creating a plan.
Step 4: Understand Your First-Time Buyer Status
Here's some potentially great news: you might qualify as a first-time homebuyer even if you owned a home during your marriage. If you haven't legally owned a home in the past three years, or if you were never actually on the title or mortgage of your previous home, you could be eligible for first-time buyer programs.
These programs often offer:
- Lower down payment requirements
- Reduced interest rates
- Help with closing costs
- Special loan programs like FHA or VA loans
Step 5: Get Your Documents Organized
Nothing slows down a home purchase like scrambling to find paperwork. Start gathering these documents now:
Income Documentation:
- Two years of tax returns
- Recent pay stubs (last 30 days)
- Bank statements (2-3 months)
- Proof of spousal/child support income
Asset Documentation:
- Investment account statements
- Retirement account statements
- Documentation of any gifts for down payment
Other Important Papers:
- Driver's license
- Social Security card
- Divorce decree and property settlement agreement
Pro Tip: Create a folder (physical or digital) and keep everything in one place. Your future self will thank you when the lender asks for the same document for the third time.
Step 6: Shop for Mortgage Pre-Approval
This is where the rubber meets the road. Pre-approval isn't just a nice-to-have, it's essential. It shows sellers you're serious, and more importantly, it shows you exactly what you can afford.
Talk to at least 2-3 lenders and ask about:
- Conventional loans
- FHA loans (great for lower down payments)
- VA loans (if you're a veteran)
- USDA loans (if you're looking in rural areas)
- State and local first-time buyer programs
Don't just focus on interest rates, also consider loan fees, closing costs, and customer service. You want a lender who will actually return your calls and keep things moving smoothly.
Step 7: Rethink Your Housing Needs
This is your chance for a fresh start, so let's think strategically about what you actually need versus what you think you want.
Consider these questions:
- Do you really need as much space as your married home?
- What's your commute situation now?
- Are good schools a priority if you have kids?
- How important is maintenance, are you ready to handle yard work and repairs solo?
Think about the total cost of ownership:
- Property taxes
- Homeowners insurance
- Utilities
- Maintenance and repairs
- HOA fees (if applicable)
Sometimes a smaller, newer home in a great location beats a larger fixer-upper that will drain your time and money.
Common Mistakes to Avoid
Don't rush the process. I know you're eager to get settled, but buying a home is a marathon, not a sprint. Take time to find the right fit.
Don't ignore the emotional side. Buying a home after divorce brings up a lot of feelings. It's okay to take breaks from house hunting if you need them.
Don't forget about emergency funds. You'll want 3-6 months of expenses saved even after you buy. Homeownership always comes with surprises.
Don't go it alone. Lean on professionals, a good real estate agent, mortgage lender, and attorney can make all the difference.
Your Next Steps
Here's your action plan for the next 30 days:
Week 1: Get your financial picture clear and pull your credit reports
Week 2: Gather all your documentation and organize it
Week 3: Start shopping for mortgage pre-approval with multiple lenders
Week 4: Get pre-approved and start thinking about your housing needs
You've Got This
Buying a home after divorce isn't just about finding a place to live, it's about creating a foundation for your next chapter. Yes, it feels big and maybe a little scary, but you're stronger than you think.
Take it one step at a time, lean on professionals who have your back, and trust the process. Your new home is out there waiting for you.
If you're feeling overwhelmed or have questions about the local market, don't hesitate to reach out. That's what we're here for: to make this journey as smooth as possible for you.
Need personalized advice for your situation? Contact The Dennedy Home Group for a no-pressure consultation about your home buying goals.