Why Wait?

1. Support income pay history. If child or spousal support is needed for qualifying income, a pay history has to be documented. In conventional loans, the minimum pay history required is SIX (6) MONTHS (In FHA it can be as little as 3 months). That's less than my average *pipeline time. I can't tell you how many times a new customer has called just when the settlement was winding down; I realized that an extensive (3-6 months) of support would be required in order to close the loan and I had to tell them "if only you had called a few months ago, I'd have you ready to close by now." It makes no sense to start documenting this at final divorce when a few simple tactics can have most clients already documented and ready to close upon final divorce.
2. Credit may need to be enhanced. This takes time - up to two years and rarely less than 4 months (if "credit repair" or even resolving disputed accounts is required). Why not get started earlier than later? There is no down side to starting as soon as possible. If your client does get started, you have given them a 3-4 month head start. That's extra value for your client.
3. Avoid last minute rushes and the stress involved. Especially if you are settling and finalizing in the next several weeks, things can get a little crazy if the client is being rushed to get his/her documentation together. Of the top 42 stress producing life events (http://www.stresstips.com/lifeevents.htm), 17 are more than likely present in most of your clients.  In the coming years as more research is done – and from my experience these past few years since 2010 - the process of obtaining a mortgage loan (whether refinancing or purchasing) will climb to a more prominent place on that list, no doubt. Suffice it to say for now, the mortgage process compounds the stress already experienced in divorce. The greatest benefit of my help is only realized in the context of a mortgage application - actually getting the deal done, turning "white paper into green money." (See #7) So, the early start strategy can do nothing but help and, most probably, deflect unnecessary strains upon your clients.
4. The appraisal. That critical property value has to be determined - often for the purposes of agreeing on buyouts. Appraisals - that is, those which are useful for financing - can only be ordered and obtained by the lender as part of a mortgage application and process. No appraisal ordered simply as part of settlement negotiations can be used (or even consulted) in a mortgage loan application. Of course, the appraisal should be obtained not too early but not too late. The timing is crucial. If ordered too early, the appraisal will expire and will require a "recertification" (at a cost) or an entirely new appraisal. If ordered too late, the settlement will not have time to consider the report of "opinion of value."
5. I need to PRE-underwrite (review) the draft of the decree. Many lawyers and borrowers still do not understand that a lender will underwrite every word of a divorce decree - even decrees from 20+ years ago. Why? Among other reasons, all divorces have the potential of creating liability and assigned or contingent debt. But, here's the thing - just as the underwriter's review of the decree takes place only as they underwrite a loan file, so my review is only useful in the context of a full and completely documented loan application. Otherwise, I'd be trying to do something for which I am not trained or licensed - practice law (reviewing decrees and providing some sort of input???). No. I can help most by making sure the loan file is not subject to the unknown - and that means, taking the application early, processing the file and PRE-underwriting the decree.
6. You and your client get free consultation - on call, any time, whenever you need it. But, this consultation is more organized, less rushed, more thoughtfully considered and weighed in light of other factors when I have a full loan file in front of me. In fact, it’s the only way I can responsibly consult you and your client. Otherwise, I’m just giving out general outlines of lending guidelines. This is nominally helpful; but, hardly what you need. My consultation is precise and effective inasmuch as I have the necessary information.
7. The house. It's usually the biggest issue in regular divorces. Many times, a client will say, "when we get the house figured out, we're ready to finalize." Virtually all of the time, the house and its financing - at least from the perspective of getting the deal done - are intertwined with all other features of a settlement: debts, assets, property, child (support), etc. So, why is it treated as a last minute add-on? How it is handled will affect, like no other feature of a divorce, whether or not financing is obtainable, whether or not we can “turn white paper into green money.”

Noel Cookman

1.   Divorce (well that's obvious)
2.  Marital Separation
3.   Marital reconciliation (often there have been attempts at reconciliation; I didn't realize that it produced stress but it makes sense)
4.   Major change in health or behavior of family member
5.   Sexual difficulties
6.   Major change in financial state (e.g. a lot worse off or a lot better off)
7.   Major change in the number of arguments with spouse (e.g. a lot more or less)
8.   Taking on a significant (to you) mortgage
9.   In-law troubles
10.  Major change in living conditions (e.g. new house, renovating)
11.  Change in residence
12. Major change in church or spiritual activities (e.g. a lot more or less than usual)
13.  Major change in social activities (e.g. clubs, dancing, movies etc.)
14.  Taking on a small loan (e.g. purchasing car, TV, freezer etc.) [e.g., putting legal bills on a credit card]
15.  Major change in number of family get-togethers (e.g. a lot more or less)
16.  Holiday or vacation and 17. Christmas [at some point during the course of the divorce process, the calendar is going to produce a holiday, vacation or Christmas.]