Divorce is a time of turmoil, both psychological and financial. A newly divorced individual may feel the need to get life back to normal as soon as possible. This often translates into buying a home and taking on a mortgage payment. Folks who are soon to be divorced or newly divorced need to take a hard look at whether this is the optimal time for home buying. As a Minnesota Family Law Attorney, Kallemeyn & Kallemeyn encourages our clients to consider the relative permanence of buying a home and starting out with a home mortgage payment.
Questions to Ask Yourself if Buying Home After Divorce
A recent New York Times article focused on questions that people should ask themselves before buying a home. The questions can be particularly important for a newly divorced or soon to be divorced individual who is entering a new phase in their life. The Minnesota real estate market has rebounded to some extent and varies from community to community across the Minneapolis and St. Paul, MN areas.
- What is the Worth to Have a Permanent Home?
Owning your own home with a stable mortgage rate gives you a certain amount of security. You never have to worry about fluctuations in rent amount. Nobody will tell you what color to paint your walls or where to hang a picture. Think about how important it is for you to have this sense of permanence.
- Do You Want to Live in the Same Place?
It usually takes several years to build equity in a home. During this time it makes financial sense to stay in your home rather than taking a loss when selling. Are you confident that you will want to live in the same home for seven to ten, or more years while the home builds equity?
- Is Your Future Income Stable?
After having just been through dissolution of your marriage the idea of financial stability may still be very fresh in your mind. Home Mortgages generally last for 15 to 30 years. You are bound by a contract to make your payments for the duration of the loan. Are you confident that your Future Income is stable enough to fulfill your mortgage responsibilities?
- Are You Good at Saving Money for the Future?
A Home Mortgage Loan is a large financial commitment that can become a valuable asset in retirement. Mortgage payments force you to invest in your future. The goal is to pay off the home loan and own a valuable piece of real estate. Renting does not allow you the benefit of owning this large asset. However, a renter who is good at Saving Money for the future could do quite well with a brokerage account.
- Are You Accepting That the Future is Unknown?
Real Estate Markets all across Minnesota went on a virtual rollercoaster ride over the last several years. Nobody can predict where the housing market will be in the next several years. Homeownership has been historically a good investment but there is never a guarantee. This is something that all homeowners must be willing to accept.
MN Family Law Attorney
Family Law Attorneys at Kallemeyn & Kallemeyn have guided countless couples through the divorce process. The psychological and financial turmoil can make the future seem very uncertain. Before making a large decision such as buying a home and starting a new mortgage, you need to consider if this is the optimal choice for you right now. Soon to be divorced or newly divorced individuals may want to keep an open mind and look at all choices available before deciding to purchase a new home in Minneapolis / St. Paul or other Minnesota communities.
Contact Kallemeyn & Kallemeyn Law Firm for help with Divorce & Family Law via our Online Form or at (763) 427-5131.