Broker helps newly divorced woman buy home in Madison

Mortgage banker: Patricia Leary Property type: Single-family purchase in Madison

Purchase price: $286,000.

Loan amount: $228,800. Appraised value: $286,000. Loan type: Conventional. Backstory: Leary often works with buyers who are going through a divorce or separation from their spouse.

Leary received a call from a woman who stated that she was going through a divorce and she wanted to get pre-approved for a mortgage on her own. Leary received this referral from a divorce attorney who often sends her buyers going through a divorce.

Leary started the pre-qualification process by asking questions. This buyer currently owned a home with her husband. Leary went over the guidelines with her for the current situation.

First, the house would have to be sold or the divorce decree would have to state that her husband would be 100 percent responsible for paying the current mortgage. This way the mortgage payment wouldn’t be counted into her debt.

Leary started the process by looking at the credit report. Leary then had to obtain the buyer’s federal tax returns. The buyer’s only income was going to be alimony and child support because she was unemployed. Leary then let her know that the amounts that could be used as income would have to be written into the divorce agreement and that she would need a fully executed divorce decree stamped by the court.

Leary also let her know that she would need to see 6 months of on-time payments of child support and alimony before it could be used as income to go along with the divorce decree. In her case, she had to wait the six months to show the payments, which she did by supplying six months of bank statements.

The alimony also has to continue for at least three years from the closing date. Leary also had to make sure that the child support would continue for three years after closing. In this case, the children were young so it worked out.

Using the alimony and child support as income, Leary let the buyer know what she would qualify for and what her monthly payment would be to cover the new mortgage.

Leary was told that the client’s home was listed for sale and that there was a buyer and she would close on the property in 30 days. Leary went over the payment dates and figured out when the buyer could close on a purchase.

Leary’s buyer found a home in Madison that she could rent with the option to buy in 6 months and went into contract. The buyer now had a place to move to with her two children when her house sold. The pre-approval letter that was given at the time stated that the six months of payments were required.

Leary took the loan application with one payment check due knowing that the up-front work was completed for her processor who would condition for the last payment to show the six months. The buyer closed and now owns a home on her own.

Leary stays on top of her guidelines and knows that when someone comes to her and they are going through a divorce or separation she has the answers to help them.