June 28, 2020
Are you thinking about selling your house? Before you do, there are some things to consider first. For example, can you sell a house with a mortgage on it? Can you sell your house before paying off the existing mortgage?
Those are just some of the questions we are here to help you answer. Here we will go over everything you need to know to move forward.
The most common loan terms are 15- and 30-year mortgages. That leads us to the question “Can you sell a house with a mortgage?” This scenario is quite common. Most homeowners only live in a house for about 5-7 years before deciding to move again. Therefore, yes, you can sell your house if it has an existing mortgage balance.
That leads to the next logical question. Can you sell your house before paying off the mortgage balance? We will discuss that question next.
Yes, you can. However, there are some stipulations and things you should do before you begin.
If you are wondering if your mortgage company will give you a discount for paying off your loan early, the answer is no. Lenders make money on the interest you pay on your loan every month. Therefore, paying your mortgage off early actually costs them money.
Now let us move on so we can talk about how to sell your home if you have a mortgage.
As we discussed above, you will first need to contact your mortgage lender and get the information you need to begin the home selling process.
After you have all that information, you can proceed with the following.
Do you want to sell your home traditionally using a Realtor? If so, be prepared to pay thousands of dollars in commissions and going through a long, inconvenient, stressful process.
Or, perhaps using a home buying service that offers flexible terms and a quick, easy close might be the better way to go? With a home buying service, if your home is worth more than what you owe the bank, you will probably make some profit.
Home sellers first need to establish the value of the homes for sale in that housing market, along with the size and condition of their current home. Then they can decide what the asking price of their old home should be.
Cost of selling is normally calculated by Realtors under a net sheet or you can use a law firm to calculate the cost of selling associated with selling your home. Next, you will need to find a title agency.
Once the seller’s initial settlement statement is prepared by a Realtor or an attorney the title company will provide you with a final settlement statement. This will include the amount of your mortgage payoff. It will also give you the other fees and estimated closing costs required to sell and close on your home while letting you know if you have any negative equity.
This will be all the information you need to begin. It will also show you approximately how much money you will or will not have left after you close on your home based on your projected selling price.
Now you can now put your home on the market and begin looking for a new home. That is when all the fun begins. You should be prepared to always keep your home clean and orderly and be ready to drop everything at a moment’s notice so real estate agents can show your home.
If you have a reverse mortgage and want to sell your home, you can do so. The process is the same as any other home sale. The only difference is you must repay the reverse mortgage loan balance. The lender will then close your account. However, you still get to keep any remaining equity you have in your home.
Are you ready to sell your home but do not want to go through all that hassle? Or perhaps, you do not want to pay thousands of dollars in real estate agent and broker commissions. Either way, we can help. Contact One Step Offer today for a no-obligation consultation about how we can help you with the hassle-free sale of your home, get an instant cash offer and close within days