Selling a home is not an easy process but let realtor Tom Gilliam at homes 2 move you guide you. It becomes even more difficult when you have a mortgage. Many homeowners wonder, “Can you sell a home with a mortgage?” The answer is yes, you can sell your house even if you still owe money on your mortgage.
Can You Sell a Home with a Mortgage?
Yes, you can sell your house with a mortgage. Moreover, when you sell your home, the proceeds from the sale are used to pay off the remaining balance of your mortgage. Additionally, any money left over after paying off the mortgage becomes your profit. The key is ensuring that the sale price of your home is high enough to cover your mortgage balance and any other expenses involved in the selling process.
How to Sell a House with a Mortgage?
1. Understand Your Mortgage Payoff Amount
Before you put your house on the market, contact your mortgage lender to find our your payoff amount. This is the total amount you owe. Similarly, this includes the principal balance, interest, and any fees for paying off the loan early.
2. Determine Your Home’s Market Value
Next, you need to figure out the current market value of your home. Therefore, you can do this by working with a real estate agent who can provide a comparative market analysis.
3. Calculate Selling Costs
Selling a house involves various costs. Similarly, this includes real estate agent commissions, closing costs, repairs, and moving expenses. Furthermore, you can estimate these costs to make sure that the sale price will cover your mortgage payoff amount. This will leave you with a profit.
Selling with a Mortgage: FAQs
What is a Mortgage Prepayment Penalty?
Some banks charge a fee if you pay off your mortgage early. Furthermore, this is called a prepayment penalty. It’s like a punishment for paying your loan back faster than expected.
Not all mortgages have this fee, so be sure to check your paperwork or ask your bank. If you do have one, it could cost you money if you sell your home early.
How Soon Can You Sell a House After Buying It?
You can technically sell a house right after you buy it, but it’s usually not a good idea.
Selling too soon can cost you money. You might not make back what you spent on buying the house, plus you’ll have to pay to sell it again. It’s generally better to wait a few years for the house to increase in value before selling.
What Happens When You Sell a House with a Mortgage?
When you sell your house, the money you get from the sale is used to pay off what you still owe the bank.
- Figure out how much you owe
- Sell your house by working with a real estate agent to find a buyer for your home.
- Close the deal
Do You Need Any Help?
Selling your home can be a complex process, especially when dealing with a mortgage. Let realtor Tom Gilliam at Homes 2 Move You guide you through every step. Our experienced team of real estate professionals will help you navigate the market, negotiate the best deal, and ensure a smooth closing process. Contact us today for a free consultation.