Selling a House with a Mortgage

Can I Sell a House With a Mortgage?

It is finally time to sell your home and find a new one that fits your household preferences and needs. However, you may still be working on mortgage payments. This scenario is often confusing for homeowners and begs the question, “Can I sell a house with a mortgage?”

Is It Possible To Sell Your Mortgaged Home?

The short answer is yes, you can sell a home with an outstanding mortgage balance. Many homeowners do this, using the profits to pay off the mortgage. Bear in mind you will also need to cover closing costs and other expenses related to the sale.

How Do You Sell a Home With a Mortgage?

Selling a home after making a down payment on a mortgage is possible and quite common. However, the process involves several steps you should follow carefully. With professional help and a little know-how, you can enjoy a short sale and a good profit.

Request a Payoff Statement From Your Mortgage Lender

The first step involves getting a payoff statement. You must contact your lender to get this document and determine your remaining loan balance. Without this information, you risk incurring negative equity and covering the remaining mortgage out of pocket.

Payoff statements include more info than how much you owe the mortgage company, including details like the following:

  • Accrued interest amount
  • Payment due date
  • Private mortgage insurance penalties

Determine When To Sell

“Can I sell a house with a mortgage?” Yes. “Is now the best time to sell?” Maybe. Just because you can sell your home doesn’t mean you should do so as soon as possible.

As you think about when to put your property on the market, consider factors like the following:

  •     Why you intend to sell: Finding a new home immediately is essential if you plan to move for work-related reasons. Otherwise, your best bet might be to wait for things like property taxes, capital gains taxes, and other real estate taxes to improve.
  •     Current market climate: You want to analyze the real estate market before deciding to buy or sell. For example, you should hold off on selling if it is a buyer’s market.

Set a Fair Listing Price

No seller likes to settle for less. However, overpricing can lead to fewer offers and more difficulty closing a deal. An experienced real estate agent can help you determine a reasonable price and complete the real estate transaction on the closing date efficiently.

Sell Your Home and Pay Off Debts

After you sell your home, it is time to pay off your debts. You can use the sale proceeds to cover mortgage debt, a home equity loan, closing costs, and other expenses. Your lender will let you know the mortgage payoff amount (including interest) and when and how to pay.

Get Expert Help From Professional Home Buyers

At Professional Home Buyers, our experts have answers to questions like “Can I sell a house with a mortgage?” To learn more and get a free quote on top-notch real estate services in the Wichita, KS, area, call us today at (316) 202-1628.

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