If you’re going through a separation and considering buying a home, you might be wondering how it will affect the mortgage process. In Texas, there is no legal separation—you are either married, single, or divorced. This distinction matters because Texas is a community property state, meaning your spouse may still have a legal and financial stake in the transaction.

How Separation Affects Your Mortgage Process

Even if you are living apart, your spouse may still need to be involved in the home-buying process. Here’s what to expect:

• Spouse’s Signature at Closing: Unless you are legally divorced, your spouse may need to sign certain mortgage documents at closing or provide a power of attorney.
• Debt Considerations: Depending on the loan program, your lender may be required to include your spouse’s debts in your loan application, which could impact your debt-to-income ratio.
• Ownership Rights: In Texas, community property laws may entitle your spouse to an interest in the home, even if they are not on the mortgage.
• Legal & Financial Documentation: You may need to provide personal details about your spouse, including their Social Security number, date of birth, and current address.

If your divorce is not finalized, your spouse’s involvement in the mortgage process is unavoidable.

Can You Buy a Home Before a Divorce is Final?

Yes, but it requires extra steps. Since Texas law considers both spouses as having shared financial interests, it’s crucial to address these factors before moving forward.  To prevent complications, it’s essential to understand your legal standing and work closely with your lender to navigate these requirements.

What Are Your Options?

If you’re separated and planning to buy a home, consider:

• Waiting Until the Divorce is Final: This can simplify the process and remove any financial ties to your spouse.
• Consulting a Family Law Attorney: A legal professional can help you understand property rights and avoid complications.
• Working with an Experienced Loan Officer: A knowledgeable mortgage professional can guide you through the loan process, ensuring all requirements are met.

Final Thoughts

Separation can make the home-buying process more complex, but with proper planning, you can navigate it successfully. Understanding Texas community property laws and working with the right professionals can help you make informed decisions and avoid unexpected challenges. If you’re legally separated or in the middle of a divorce and thinking about getting a mortgage, get in touch with Collette Horton to discuss your options.