Episode 5: Michelle Coulier and Miguel Ruiz-Santos, Real Estate and Lending During Divorce
In this episode of the Queer Divorce Club, we're diving into the intricacies of buying and selling a home while navigating the divorce process. Whether you're looking to purchase a new home or refinance the one you owned with your former spouse, this episode is packed with valuable insights and expert advice to help you make informed decisions.
The episode features Michelle Coulier and Miguel Ruiz-Santos who experts in real estate and lending specifically tailored to the needs of the LGBTQIA+ community. Together, we'll explore the unique challenges and considerations that arise when dealing with property during a divorce, providing you with the knowledge and tools necessary to navigate this complex process.
From understanding the legal aspects to ensuring financial stability, we'll cover it all. You'll learn about strategies for dividing property equitably, negotiating with your ex-spouse, and working with lenders who are sensitive to the unique needs of queer individuals. We'll also discuss the emotional aspects of this journey and provide tips for maintaining your well-being throughout the process.
Whether you're embarking on a new chapter in homeownership or seeking to redefine your living arrangements, this episode of the Queer Divorce Club podcast is a must-listen. Join us as we empower you with the information and support you need to make confident decisions and create a secure future.
Music in this episode is from Bungalow Heaven. You can find more music from Bungalow Heaven and singer/songwriter Gretchen DeVault at gretchendevault.com.
Michelle Coulier
Michelle was born and raised in West Michigan and knows the area like the back of her hand. She has been a homeowner since the age of 23 and hopes to help others find the joy in homeownership she has found!
Michelle has had a passion for homes as far back as she can remember, pointing at homes from the backseat of her dad’s car on Sunday drives, asking him how much he would pay to own them. She worked in the medical field for over 12 years before transitioning to a natural career in real estate. Michelle says that her experience in these two fields, different as they may seem, combine to make her a caring, thoughtful agent who always keeps her clients’ best interest top of mind as they make the big and sometimes nerve-wracking decisions involved in buying and selling their homes. Her compassion and consideration are on full display when she works with any client.
In her free time, she enjoys woodworking, projects around her home, and doing work for her community. (She currently volunteers with Habitat for Humanity’s Carpenters’ Club and Women Build programs). In addition to that, she is working on getting her builder’s license in hopes that it will make her an even better Realtor® for her future clients!
Michelle and her wife, Sarah, have 2 rescue pit bulls and are advocates for the breed and pet rescue in general. She is also a drummer, ice cream enthusiast, and is a liiiiiiittle obsessed with magic shows.
You can follow Michelle on Facebook on Instagram @MichelleCoulier.Realtor and online at michellecoulier.com.
Miguel Ruiz-Santos
Raised in Milwaukee, Wisconsin and now living in Belmont, Michigan. Miguel Ruiz-Santos is a Bilingual Mortgage Loan Originator that focuses on educating his clients about the importance of being a homeowner. As a homeowner himself, he understands the rollercoaster of emotions you experience during the process but with his guidance and passion he hopes to alleviate all those emotions and turn them into excitement!
With a combined 10 years of Finance and Mortgage experience, Miguel will always go the extra mile to ensure he finds you the solution you need. Why mortgages? “I’ve always been a “numbers guy” and I love helping people. Since I was a kid, I always knew I would be in the financial industry. I’m here today and ready to use my skills and passion to help you achieve the dream of homeownership.
When Miguel isn’t talking mortgages his attending music festivals, spending time with family and love ones, volunteering in his community and traveling.
You can find Miguel on Facebook and online at mortgage.horizonbank.com/miguelruizsantos.html
Show Transcript
00:00:07:15 - 00:00:34:07
Michelle and Miguel. Welcome to the Queer Divorce Club podcast. I'm so excited to have you both today.
Thanks for having us. Nice to be here. Thank you.
For all you listeners, we're going to go through and talk about all things real estate in mortgages with the worst. It's one of the biggest portions of it, the divorce process, the actual process, where you're going to live, how you divide your home assets and that sort of thing.
00:00:34:07 - 00:00:52:11
So I'm excited to have Michelle and Miguel here to to talk about that and see if we can get some questions answered. Obviously, too, I would like to say and maybe you will mention this to both of you are from Michigan. So there may maybe if you're from other states, there may be some different rules or other things we talk about.
00:00:52:13 - 00:01:17:10
We can bring that up. But make sure you're looking at your own rules in your own state and talking to agents there if you if something comes up for you. All right. I'd like to get started. Just want to hear about what you both do, what areas of expertise you have and have you worked with individuals who are going have been going through divorce or are going through divorce in the past?
00:01:17:12 - 00:01:36:07
Miguel, do you want to go ahead and start us off? I sure can. Well, first of all, there again, thank you so much for having us. And as Sarah mentioned, my name is Miguel Ruiz. I'm a bilingual mortgage loan originator here in the state of Michigan. I do cover other states as well, which we can touch more on that later on.
00:01:36:09 - 00:01:57:17
But the reason why I do what I do and why I love what I do is because I get to meet new people every day. So just being able to see that people are just excited to become homeowners is the reason why I do what I do. So my goal and my focus is always to educate everyone about the importance of being a homeowner, finding the right product, the right solution that fits best their needs.
00:01:57:19 - 00:02:18:04
I personally specialize in first time homebuyer programs, secondary programs for people that are secondary homeowners. I also specialize in investments so people that are looking to invest in new properties, things like that. And I also do quite a few refinance. So people that are looking to consolidate. People that are considering about paying other liabilities, downsizing on a home.
00:02:18:06 - 00:02:51:14
I kind of specialize in refinances as well. But yeah, that's a little bit of what I do and why I enjoy doing what I do. Thank you. How about you, Michelle? Yeah. So I'm a real estate specialist with BP Realty. We're based in West Michigan. We do serve all over all over Michigan, however. And then as far as what I would consider my area of expertise, kind of along what Miguel was saying, I love working with first time homebuyers because I do kind of think of myself as a teacher.
00:02:51:16 - 00:03:14:00
So instead of just like, you know, taking the reins and being like, here's what we're doing, I like to explain why we're doing it that way and what the issues might be if we did it another way. And then also, like Miguel, I, I am a real estate investor myself, so I take on a lot of investor clients too, and that's pretty fun for me.
00:03:14:02 - 00:03:47:03
And then as far as working with people who have gone through or are going through divorce, I have worked with several. Every situation is different. But I would say the main thing that I try to keep in the forefront of my mind when dealing with them is that they are going through a trauma. So trying to be compassionate and serve as a leader who sets clear a clear direction, a compassionate friend, and I would say a realistic guide, whatever they kind of need me to be to help keep that situation as stress free as possible for them.
00:03:47:05 - 00:04:09:23
So I think that that also means having an open and honest conversation about what they're feeling and needing from me. Yeah, that's a good point to bring up, because no matter how people are getting divorce, if it's amicable or not, it's the financial part is stressful in the home as part of that big stress. And then when people are not amicable in the divorce, it's even harder.
00:04:09:23 - 00:04:35:13
So it's good to have somebody who can be a neutral agent in that space for you. I know how many agents you know. I know several that end up being therapists for the people on both sides. And yeah, an uncredited. But that's good. Important to have somebody you trust in the middle there. All right. So let's talk a little bit more about those stressors about the finances.
00:04:35:13 - 00:04:57:12
Miguel, I'd like to start with you and ask you a question about mortgages and home sales and, you know, timing. So if a married couple owns a house together, but they're not yet legally divorced, but they're planning to get divorced, what are their options for selling their home? Can they sell it before or after? Can they refinance before, after?
00:04:57:12 - 00:05:17:22
You know, what are all those options? So that is a really good question and sometimes can be taken a misconception based on media and things like that. But whether you decide to buy, sell prior or after the divorce, you do have several options actually. So one of the most easy options is depending on the agreement with the mutual relationship.
00:05:17:23 - 00:05:38:21
So one significant other decides size to keep the house. Then what you can do as a title change basically is consider a quitclaim. Basically, one person's transferring title interest from a real estate property to the other person. So that's always the easy option. Assuming that both parties agree to keep one of the House. And you can, of course, for the House if you're still paying it.
00:05:38:23 - 00:06:03:03
Another option which is the most popular is refinancing your house. So refinancing your house gives you few options so you can always consider downsizing houses. I briefly mentioned mutual debt consolidation. So to make it easier, less headaches, some of those debt consolidation and sometimes also paying off the other person just to buy them out of the loan. If you decide to keep the house, that's always a great option.
00:06:03:05 - 00:06:29:15
And the easiest option that a lot of people consider is just selling your house. Sometimes if there's no mutual agreement, selling your house, putting it in the market can be that easy option around. But regardless of what decision or option you choose, just be mindful as a person going through a divorce or potentially thinking about divorce is no matter the option you decide there has to be mutual signatures throughout the process whether you decide to refinance, keep the house or sell.
00:06:29:17 - 00:06:52:20
So regardless, just have the mutual conversation of what we're going to do. It require signatures. Okay. So if you're so in the three options, if you're somebody is going to keep the house, but there's no financial transfer is needed, you can do a quit claim deed and take one person's name off the house. Okay. The second option is to refinance if somebody wants to live there, but you need to move some money around.
00:06:52:20 - 00:07:11:01
So take money out of the house and pay off either the other person or, like you said, common debt. Because I think the one thing people forget about when they go through divorce or may not know is that you also share your debt with your person you've been married to. So that's important to remember. And then the third option is to sell the house and share the proceeds based on what your agreement is.
00:07:11:01 - 00:07:33:10
Correct? Okay. Yes, that is correct. And in that process, when you're getting to sell, you said you have to have mutual signatures. Do you have to have your full final divorce agreement signed to do that? Then in some scenarios, you can if the divorce has already been finalized, you can typically, if you're still started the process, typically it's not required.
00:07:33:12 - 00:07:52:03
Most signatures are required when you're listing your house, whether it's to buy a new house or listing a house, there's something called a purchase agreement. So it's basically a contract, whether the listing is selling to the new buyers. So anyone's name on the title has to be sign a document as well before we can proceed with the closing right, Right.
00:07:52:05 - 00:08:24:19
And we don't have a title escrow officer here with us, but that would be the third party in this process that would help determine exactly what is needed when you sell. Correct or refinance. That is correct, yes. Okay. Awesome. Getting to the technical details. I love it. Okay. How would you determine So say we have two spouses that own a house and one of the spouses wants to buy, leave and buy a house, but they've been married for ten years, so all of their finances are connected there in the home.
00:08:24:21 - 00:08:46:00
How do you determine that that one individual is qualified outside of the marriage? What things do you do you look at and what do they need to keep in mind? So what we look at someone that's looking, regardless if it's pretty or post-divorce, typically it's a combination of your credit score as well as your debt to income ratios.
00:08:46:02 - 00:09:05:23
The benefit with us is we work with credits as low as 580. There's a couple options for a low moderate income up to 60 or better, but just something to be mindful as a buyer looking to buy after divorce or pre divorce or whatever the case may be, is the higher your credit score, there's more benefits for you as a buyer.
00:09:06:00 - 00:09:25:07
Typically that means better programs, better products with lower down payment requirements, better interest rate options as well for you as a buyer and as well. In some cases, you can still qualify for downpayment assistance. So a lot of programs here, at least in the state of Michigan, there's some misconception of this prominence up for first time homebuyers, not necessarily.
00:09:25:09 - 00:09:41:20
You can be programs that will cover and help people that are looking to buy any primary residence. So assuming that you're going to sell your house or downsize on the house, you're still looking to buy a new primary residence and you can potentially qualify for that downpayment assistance. But just going back to like the debt to income ratio.
00:09:41:20 - 00:10:06:10
So what that means is we look at your gross monthly income versus your liabilities monthly combined. So just a quick scenario. Basically, let's say you have a 5000 gross income and you have a combined of $5,500 in liabilities all combined. So depending on the program, this requirements of how much income we can use, let's say in program, we qualify.
00:10:06:10 - 00:10:25:07
Let's use up to 50%. So you have 20 $500 to play with. But out of that 2500, we have to deduct that $500 of liabilities of existing. So we have about $2,000 to claim. So on, assuming your credit score is good, your debt to income ratio is like good. That's how we can determine if you are qualifying by.
00:10:25:09 - 00:10:48:00
Okay. And speaking of those debt to income ratios, if I'm still married, does my spouse's debt can be considered mine when I'm trying to buy a house? And how do you if so, what? At what point are those considered separate when you're trying to purchase a house as a as one spouse instead of as a couple? Okay. So depending on the situation.
00:10:48:00 - 00:11:10:14
So let's say it's before filing for the buyer's. And if that person is paying all of those expenses out of their own bank account for some people do have two separate bank accounts. Some people like to keep their own combined separate accounts as well. So depending on the option, let's say one spouse has come here and the other one has a bank account here and credit cards on both.
00:11:10:14 - 00:11:36:11
But one person is responsible. If you can provide four months of monthly installment payments coming out of that bank account, that's suffice enough proof. And we don't have to count that as a liability against you to buy your new house. And then if you are already filing for divorce, depending on the divorce decree, if it states that partial 50, 40, 60%, whatever the percentage may be dividing that liabilities, that's what we can use against and towards your liabilities.
00:11:36:13 - 00:12:02:07
Okay. So you can split it and count it, or you can look at who is making the payments in order to determine who the debt is. Okay. So I had the scenario in my divorce where my ex-husband and I owned a car together. I went to refinance and his even though he got the car and the divorce, his car debt, his loan, and the car came up on my statement, on my credit score.
00:12:02:13 - 00:12:22:13
So if I'm looking at that, if I'm buying a mortgage and he's been paying it for the last year on his own, would that be a scenario where you would take that portion of debt off of my debt to income ratio? That is correct. So as long as he can provide us with four months of payments, we can exclude that from the liabilities.
00:12:22:15 - 00:12:43:14
Okay. And there could always be obviously in the scenarios where you said before, where if you sold your house and paid it off and you paid off all that debt, things like car payments or credit cards that you shared, then those things would come off before you purchase your next house, correct? Yeah. Okay. This isn't getting into the nitty gritty details for those of us who don't see the lender every day.
00:12:43:20 - 00:13:03:00
Okay? Yeah, okay. And it can be a lot, but that's the reason why I'm here. So any questions and every little details? That's what I love more. Just covering those little small details that we usually miss makes it easier for people understanding when they're looking to buy, refinance or sell at home. Okay, perfect. So talk with your lender.
00:13:03:03 - 00:13:26:03
Or if Miguel is here with Miguel to think about specifically what you need to focus on in your debt and debt to income ratios, look ahead at what you need to do with your house before you get ready to buy and have all your paperwork and in place. I think one of the things I would run into a lot I used to work in title actually, is that people don't necessarily know what documents they need to have in place first.
00:13:26:03 - 00:13:52:01
So make sense to me. You talk to your lender, talk to your realtor first, have all that stuff in place, then go out and look for a house on pawn. All right. Let's talk a little bit about the house side and we'll come back to finances to Michelle. If you're working with an individual who is about to get divorced and they want to buy a house, you know, how would you get them started in the process?
00:13:52:03 - 00:14:30:22
Yeah. So I think first and foremost, make sure they understand all the pros and cons in their particular situation so that I can help them make a wise decision. There's so many what ifs and everybody's scenario, so it's hard to just give you a, a, B, c kind of thing. But so sitting down and really understanding all of those intricacies of their particular situation, and then the next step would be to connect them with a competent lender such as Miguel, who's awesome, and then find out what they can get pre-approved for, because that's going to dictate a lot of our next moves.
00:14:30:24 - 00:14:50:12
Okay. When just as we're starting the process now, what are some of the things that if somebody comes to meet with you that they should know about, like there may be their timing of divorce, where they want to live? What are some of the other things you would hope you would ask them about when they first come to meet with you?
00:14:50:14 - 00:15:08:17
Yeah. So I find out, you know what they're as far as like knowing where they want to live, like find out what their priorities are. You know, maybe they've got a really good support system they want to be near. If they have children there, a certain school district, they need to be in that kind of stuff. So we'll cover all of that.
00:15:08:19 - 00:15:30:12
And then from there can kind of help guide them to, you know, what I think would be a wise choice. You know, that might not be for everyone, but yeah, just kind of feeling out their situation and trying to help guide them through all of it. And I mean, there's all the little details that are in the mix that I like to think I'm very thorough with.
00:15:30:14 - 00:15:57:24
So we would sit down for probably a good hour or more and just go through everything to kind of help you understand the process, you know, what to expect, and then get all our ducks in a row, if you will. Okay. That answered your question. Yeah, definitely. Definitely. Okay. I'm just thinking about when I bought my first house and I went through this process with my ex-husband to I didn't end up buying on the second round, but he did and he waited for a little while, so he's gone.
00:15:57:24 - 00:16:18:22
I've had some experience with the process, but one of the things I was thinking about for some people that I run into as they are thinking about it as they're getting divorced, one of the things that comes up is like you're resettling, right? You're creating this new life for yourself. Essentially because you've been no matter if you were married for a year or two or five years, you're resetting where you're at.
00:16:18:24 - 00:16:47:20
And one of the things I think is most important is where you're going to live. So some people might move into a rental to be, you know, temporarily have this home base and some may want to purchase right away. What advice would you give them? You've already given us a little bit, you know, trying to decide where you want to live based on if you have kids or not, what kind of neighborhood you would be in, but what other things might you talk with them about or give them advice on when they're trying to decide where they want to live?
00:16:47:22 - 00:17:16:14
Yeah, I guess it would be. You know, you don't have to know everything right now. So if that means you want to rent for a little bit and kind of fill out some different areas, see how you feel, you know, just acclimating to your new life, by all means, rent somewhere. And then once you've kind of decided on a place, you know, and then, you know, we can connect and, you know, start making the steps towards homeownership again.
00:17:16:16 - 00:17:37:21
Yeah. On the rental side, Miguel, if you're if you have somebody who decides to rent for six months, is there anything they should keep in mind on the renting to homeownership transition, like when their lease is up or, you know, what type of things are considered when you are going to give them, you know, process them for a loan after they've been renting.
00:17:37:23 - 00:18:03:05
So overall, the most important thing is while you're waiting to purchase, the house is done on anything through your credit. So don't spend any new installments liabilities. Other than that, just keep working. Have an employment with no employment gaps for over six months. So as long as you have consistent employment, no. Any liabilities? Once we get that process going, he could make it so much easier for you.
00:18:03:07 - 00:18:22:07
Yeah. And new liabilities are like rent, you know, buying a couch on loan, a new car, credit cards, you know, all that stuff, right? That is correct, Yeah. So opening any new installments, such as you mentioned, any couches, people get excited when they come to renting a new place or just buying a house as well as credit cards.
00:18:22:09 - 00:18:46:05
So sometimes you'll be surprised. People like to buy new cars. So which is the biggest downfall when looking to buy a house? Because it's the biggest other than a mortgage is the biggest monthly payment. So don't buy a car. Wait. After the whole process. Yes. Unless of course, you need a car. But then go easy. Don't buy the most beautiful, most expensive one of the process right.
00:18:46:07 - 00:19:05:11
Okay. Let's talk about the selling side a little bit. So we mentioned this a little bit at the beginning. You know, selling in a divorce can be complicated depending where you're at. So, Michelle, I'd like to hear from you. What are some of the ways that you can make that selling process smooth if you're going to sell between you and your spouse?
00:19:05:13 - 00:19:28:19
Yeah. So I always try to help both parties understand, I guess, the goal with the bigger picture of why we're here and why we're sitting down and going through all of this. I know it can be very tough on people, very challenging time. So focusing on the why I think is huge to keep that big picture goal in mind.
00:19:28:21 - 00:19:48:13
But then there's also, you know, the logistical things of we can meet in different rooms, you know, we can do e-signatures. So you don't actually have to sit down and look at each other across the table, stuff like that. Just kind of help it run as smoothly as possible. So it's like, I guess, trying to keep the peace between the two individuals.
00:19:48:15 - 00:20:11:22
Okay, So if the partners can't be in the same space, you're there's ways, even when you're closing in on the house, you can sign into separate times if you need to as well. Yeah, right. Yeah. I've had a few scenarios where spouses actually legally couldn't be in the same room because of various reasons. And so that's important that no matter what through the process, you're able to stay safe in that space.
00:20:11:24 - 00:20:33:02
Also, can you talk a little bit about the listing agreement? How do you is there anything in that that people need to make sure when they're setting up for their listing that they feel like they're heard? So say it's contentious and they're trying to make sure that it's both fair? You know, what would you include in the list and groom it or what do you need at that time?
00:20:33:04 - 00:20:55:07
Yeah, the listing agreement is pretty straightforward. I mean, we're going to be asking, you know, what items are staying with the house, what items need to be reserved, you know, are kept for the sellers after the sale, after the sale. There's not really like I guess we'd have to agree on, you know, the price that we're going to set.
00:20:55:09 - 00:21:21:02
And I can help with that for sure by looking at past data and things to kind of help help you guys decide, you know, what what price point we're going to sell at. And then it's pretty straightforward. The rest of it kind of mumbo jumbo. But I guess those things that they would have to actually agree on are the purchase price or sale price.
00:21:21:02 - 00:21:39:16
Excuse me. And then what items are staying with the house or being kept? Okay. And what if they don't agree? Right. They both have to sign if both individuals are on the deed, both individuals have to sign the listing agreement no matter what. Right. So there has to be an agreement in order for the House to be listed.
00:21:39:18 - 00:22:02:19
Is that correct? Yes. Yep. And we just have to figure out something. Yeah. So maybe that's an attorney, right? So if you're in a space where you may have been in the space before, where they can't agree on a listing price, they can't agree on how to sign that, that would have to go to the judgment of divorce and be signed and discuss with the attorney if they can do that before if they can't feel like they can agree by the.
00:22:02:19 - 00:22:33:13
To divide the assets. Yeah, yeah, yeah. Okay. I like that there's a safety net on both sides because I mean, a lot of divorces, people can come to an agreement. But in those cases where they not, we want to make sure that both sides are safe in the deal. One of the thing that's just coming to mind as I'm thinking about it as individuals who maybe just one of their spouses bought the house, so say you're married, one person's on, both of you are on the deed, but only one's on the mortgage.
00:22:33:15 - 00:22:54:12
Is there a difference in how the listing agreement is written? If only one person is holding the mortgage? But both people are on the deed, are both still at the sign? In that case? Yeah. If they're both on the deed, they both still need to sign. Okay. And there's some there could be some scenarios where somebody is on the deed and somebody is not on the deed.
00:22:54:14 - 00:23:16:20
And in that case, if somebody feels like they have to have proceeds that are in agreement at the end, so say they've still agreed to 5050, share the proceeds on the House, that has to be in the judgment of divorce. Correct. And then that would. Right come out and title. Okay. Yeah, exactly. Got it right. I'm trying to think of all the safe, you know, what are the safety requirements along the way.
00:23:16:22 - 00:23:34:06
All right. Yeah. Okay. I think one of the things that keeps coming to mind for me is that it feels so stressful when you get in there, but when it comes down to it, there's not there's really not a way for you can't sell the house without your spouse. If you're both on the deed, you know you have to have an agreement.
00:23:34:08 - 00:23:50:24
But you know, the title, the lender and the agent all have to have agreement down the board from both parties. So I want to make sure you understand that, you know, that is in place no matter what, because it can be a scary process. And I think in some cases people may be like they're going to do it without me or, you know, that can't happen.
00:23:50:24 - 00:24:20:13
There's real safety safeguards. There's safeguards in every place. All right. Okay. Let's talk we've talked a little bit about some roadblocks, but I'd like to hear from both of you what could be the biggest potential roadblock in home buying or selling process when someone's going through divorce? And Michelle, let's start with you. Sure. Kind of what we just touched on, I think, is understanding the divorce judgment versus, you know, like what real estate law says.
00:24:20:15 - 00:24:46:05
There's a lot of potential conflicting situations that you need somebody to help kind of decipher and understand how to navigate clients through that kind of situation. So I'd say knowing what the divorce judgment says, if you're already at that point or the other, if you're not at the point of divorce but you're looking to sell, then it's just the roadblock would be trying to come to a mutual agreement.
00:24:46:11 - 00:25:13:09
So do you think you would? So if people are going through the mutual agreement process with the judgment of divorce and they don't necessarily know like what liens are in the house or, you know, what things are potential, what might you do as an agent so that they have all of that information before making that decision? Yeah. So I would say let's get title working on, you know what, I'm trying to find out if there's any judgments are liens on the property.
00:25:13:09 - 00:25:34:02
So basically that just means if you're if we haven't sold or we're not selling the house yet, but we're going to we can get preliminary title work done. So they'll look at the house for the past 50 years and find out if there's any judgments or liens or anything that would prevent you from having what's called clear title.
00:25:34:04 - 00:25:53:18
And then we can start navigating through those things and getting it sort of before we even get to selling. Okay. So if you don't necessarily know if there's liens in your house, like things like septic leads or drain fees that are due, that people might not know about those things, we can find out before we put the judgment of divorce together.
00:25:53:18 - 00:26:24:19
So there's a better understanding. Okay, Awesome. Yep. All right, Miguel, what is coming up for you as a potential roadblock that buyer homebuyers should be aware of for sellers? So I have to agree with Michelle. And just to kind of add a little bit on the lending side, I think personally, going back to the credit score typically and what divorces, there's a high chance and potential chance that it will not be a mutual agreement between both parties.
00:26:24:21 - 00:26:53:04
So understanding that your credit score can be impact regardless whether you do debt consolidation, if you have to split your liabilities, anything when it comes to that, just being mindful of your score because as I mentioned before, it's one of the two biggest components when trying to get pre-approved for a new mortgage. So just understanding your loan, finding that professional guidance that can help you and not sure if I mentioned this before, but as personally we offer like credit repair plans, they help you get to the score if needed.
00:26:53:06 - 00:27:13:08
So there's always solutions, There's always options just having the right guidance to help you get there. Okay, awesome. I'm feeling the need to walk through a little bit. Like what the sort of what the process might be in some various scenarios. So tell me if I've got this right. So if somebody is somebody wants to keep the house, we talked about that.
00:27:13:08 - 00:27:30:22
We do a quit claim deed. The person gets to keep the house in that scenario. Michelle You could then start helping them buy a house because they would know they're not taking any money from the house. Their assets would be where they're at. You would get an idea maybe from Michelle what you're where you could be, your loan could be.
00:27:30:22 - 00:28:10:14
And then you meet with Michelle and see what you can buy. Right. That scenario is pretty clear cut. Okay. In the scenario where you have a house to sell, I would say is the process. Meet with Michelle, get your preliminary title work done, get your house ready for the market. You know, agree on a price, get a listing agreement signed and make sure your proceeds are agreed on on the other end, whether that's in your judgment of divorce or however you do that if you're not quite divorced yet and then you sell the house and then get pre-qualified for where you might want to go next for both partners in that scenario and then look
00:28:10:14 - 00:28:33:22
for the new house, is that correct? Yes. And if you need to stay in the house after you sell it, you know, for X amount of time before you can buy, we can always do you know, where you get possession, let's say 60 days after clothes or even more or rent back from your, you know, who would now be your landlord, even though you're living in the house you've lived in.
00:28:33:24 - 00:28:54:22
But there's options for that too. So if you're like, I don't want to be out kicked out of my house the day I close on it, but I need that money then to go and buy something new. We can make arrangements for that as well. Okay. So there's a time period there where you could potentially wait to actually purchase until you know exactly how much money you have and exactly how you qualify.
00:28:54:24 - 00:29:15:05
Awesome. Okay. And then the third scenario is a refinance as a spouse, one stays in the house, Spouse two refinances. Spouse two should refinance and understand how much they're going to get from the house before they go and get qualified for their own mortgage and look for a new house. Correct. It is not in their head. Yes. Okay.
00:29:15:09 - 00:29:31:10
Yes. Right. Because you don't necessarily know how much money you can guess how much money you're going to get from the house. But especially in the selling scenario, you don't know exactly. And then you have to make sure your debts are paid off. And then you do know a good idea when you're refinancing. But it's still good to go through the process.
00:29:31:10 - 00:29:58:21
First, make sure you have the cash in hand before you buy, correct? Correct. Yeah, That's the easiest scenario. Right? I know it can be done together, but the timing, that has to be perfect, right? It can be even more stressful then. Yeah. Yeah. It's definitely the easiest and most fun part is doing a refinance. Not sure why, but I enjoy doing them number nerd.
00:29:58:23 - 00:30:22:03
I think. I mean, I'm sure there's other lenders that are like you up refinancing so fine. Okay great. Put money in their pockets. Okay. Yeah. I was going to go down on refinancing tangent, but it is kind of fun. I've had a refinance a stuck on that for a minute. It is kind of fun because you can see what equity you have in your home.
00:30:22:03 - 00:30:56:17
You know what you've put into it. You know what you Yeah, you can see the reap the benefits of your home without having to go through the selling process. All right. Anyways, okay, we run for that. Okay. I want to end with this one more question and we kind of run through some of this, I'm sure. But I really would like to know from you both what do you think is the most important thing for our listeners to keep in mind as they're going through the divorce process and looking for a home or trying to refinance or any type of, you know, whatever they're doing with their house.
00:30:56:17 - 00:31:34:06
So what's it what's important thing they need to keep in mind? And let's talk with them again on this one. So I think overall, the most important thing is don't wait. It's never too soon to look for that professional advice. So grab your phone. Give me a call now. But on this year, whether you decide to work with myself or Michelle, when it comes to like buying a house, listening at home, just talking to someone about that best professional advice, that's the most important key because that will alleviate some stress down the road and it will make your buying process or listing process so much easier.
00:31:34:08 - 00:32:03:03
Awesome. How about you? Michelle? Yeah, I probably say the most important thing to remember is that this is a season of your life and you're going to get through it. Just try to remember to focus on the people that you have around you for support. And then if you're actually going through the process of all of this, just like if you need a little extra hand-holding, you know, through the process of buying or selling, I'm here for you.
00:32:03:05 - 00:32:22:20
Like I said in the very beginning, like I want to be a compassionate friend as well as, you know, a leader and guide through the process. So I don't want you to feel like you have to jump into something because it's time sensitive. You know, I want to help you make a wise real estate decision through all of it.
00:32:22:20 - 00:32:39:24
So that's kind of what I would say. Yeah, it's good to keep in mind in both of your scenarios that you're professionals that are you know, you have a job to do, get, you know, get the household, get the loan through. But it's way more than that. It's a process that can really supportive of the individuals that are going through it.
00:32:39:24 - 00:33:04:06
You can use your expertise to make sure everybody is making the right decision. You know, all of that is so important and I really like that advice, Miguel. So focus on get ahead of it and get connected with your lender and your realtor before you need to if you can, or at the beginning of the process, build a relationship and then rely on them as Michelle, you're saying, to help you get through it.
00:33:04:08 - 00:33:33:21
Such good advice for scary, stressful time. I appreciate you both taking the time. Thank you so much for being on the podcast today. That wraps up all the questions I have for you. I'm so excited for everybody to get the advice they need about lending and or real estate. And if you need more and want to connect with Michelle and Miguel, I'm going to put all of their information in the show notes and on social on the website.
00:33:33:23 - 00:33:53:19
We can reach out to them on Facebook or Instagram. And I also have Miguel's bank application will be on the website as well. If you want to get started and see if you are can pre-qualify now. So thank you both so much for being on now. Thank you. And like you said, if you have any questions or anything, don't hesitate to reach out.
00:33:54:00 - 00:34:26:11
I promise. I'm really nice. Realtors aren't scary. They're nice, kind humans, right? We are. We can be for everyone. And I thank you so much for having us. And like Michelle mentioned, if anyone's looking have any questions, any topics that we probably didn't cover because we do have time, feel free to reach out. We're always here to help and we'll always try to find a solution that fits your needs.
00:34:26:13 - 00:34:32:19
Thank you both so much.