When you bought your home, you purchased the biggest investment of your life. If you’re like most people, you probably used a mortgage loan to help buy your home. When it’s time to sell, though, will that same mortgage that helped put you in the home keep you there forever? Can you sell a home if you have a mortgage on the property? Absolutely. This quick guide can show you how.
Step 1 – Understand What You Still Owe
Contact your mortgage lender to obtain the current payoff amount for your mortgage. This amount represents the remaining principal balance plus any accrued interest or applicable fees. That will help you better understand exactly what you’ll need to get when you sell your home fast for cash so you can repay the mortgage company.
Step 2 – Decide What Your Home is Worth
The next step is to better understand what you might be able to sell your home for. Determine the fair market value of your home by consulting with a real estate agent or conducting a market analysis. Knowing these numbers will help you determine whether you’ll be able to get enough from the sale of your home to repay your lender. To do so, you’ll just subtract the outstanding mortgage balance from the estimated sale price of your home to decide if you’ll make anything over the value of your loan. It’s important to consider other costs associated with the sale, such as agent commissions, closing costs, and any prepayment penalties on your mortgage.
Step 3 – List Your Home
If you’ve made it through step 2 and decided it’s still worth it to sell your home, the next step is to actually list it for sale. Prior to listing your home, consider making any necessary repairs or improvements to enhance its appeal to potential buyers. Staging your home and ensuring it is well-maintained can increase the likelihood of a successful sale. You may also want to work with a qualified real estate agent because taking that step can streamline the selling process and provide valuable expertise. They can help market your home, negotiate with potential buyers, and navigate the necessary paperwork.
Step 4 – Accept an Offer from a Buyer
Once your home is on the market, you’ll start to get offers on it. When you receive an offer from a buyer, review the terms and conditions carefully. If the offer aligns with your expectations, you can accept it. Keep in mind that the buyer’s offer may be contingent upon certain conditions, such as a satisfactory home inspection or financing approval.
Step 5 – Talk To Your Lender and Close the Sale
When you have accepted an offer, it’s time to inform your mortgage lender of your intention to sell the property. They will provide instructions on how to proceed with the payoff process. Your closing agent or attorney will typically handle the communication and coordination between the lender, the buyer, and yourself. The last thing you’ll do is actually close the sale on your home. During the closing process, the buyer’s funds will be used to pay off your mortgage, any applicable fees, and other closing costs. The remaining proceeds will then be distributed to you.
If you’re ready to sell your house fast for cash, know that it is possible, even with a mortgage. Take the time to understand how it’s possible to sell your house fast for ash with a mortgage loan in place.