Selling Your Home with a Mortgage: A Streamlined Guide

Steps Involved in Selling a Mortgaged House

Paying off the loans and mortgage secured on the house is the best thing to do when you decide to sell it. You can initiate the sale process and go through the various stages while still owing a balance but must clear all the dues before closing a deal. Here are the steps involved in selling a house with a mortgage.

1. Get a Payoff Statement from Your Lender

When you decide to sell a house that still has an outstanding mortgage, the first thing to do is to get a mortgage letter or payoff statement from your lender. The statement will clarify how much to pay the lender when you sell a house. You can also ask for a final statement when the closing date is set, to get the final amount because the mortgage amount changes every month due to the interest rate. A lender will also inform you about the procedure for paying the final amount to repay the loan. The payoff statement also includes instructions for payment, accrued interest details and other charges, along with a due date for the payments.

2. Estimate the Net Worth of Your Home

If you are not considering porting the existing mortgage, it will be paid off from the sale amount. This practice seems ideal as long as the sale price covers all the mortgage and you save a decent amount of money. But if your mortgage dues are more than the sale price it creates problems. To ensure yourself on this element, estimating the net worth of a home is essential. An estimation will give an idea of how much you can get from the sale. Estate Agent Power offers you a free property valuation service to estimate the value of a property.

3. Set the Righ Price and Find a Buyer

Once you have an estimate about the property, it is time to set the price accurately and find a buyer. Setting the price efficiently is essential to attract potential buyers and get the best deals. You can turn to Estate Agent Power to find a buyer for your house with a mortgage. The real estate platform offers you an opportunity to present the property to a wider audience across the globe.

4. Sell the House and Pay Off the Mortgage

After getting the best offer and accepting it, you can sign a sales and purchase agreement to initiate the closing process. Once you close on sales, proceed to pay off your mortgage along with outstanding fees or closing costs. Generally, a representative of a lender remains present at the closing to collect the due amount. After paying the outstanding mortgage whatever is left is the total amount you generated from the house sale.