Sell Your House to Pay Off the Mortgage: Financial Planning Tips

Tips for Selling a House to Pay Off the Mortgage

Planning your finances is the best thing to do when selling your home to pay off the mortgage. Selling a house with a mortgage involves a bit different process than selling a regular house. Explore the below steps to sell your house smoothly and pay off the outstanding mortgage.

Step 1. Ask Your Lender for a Pay-Off Statement

For better financial planning it’s essential to get a mortgage payoff statement from your lender. The statement will give you a clear idea about how much you owe to the lender and also specify the interest rate. The payoff statement will inform you about the payment-related instructions, accrued interest details, and other charges, along with a due date for the payments. Once you set a closing date for your house sale, get the final statement from the lender to check the final outstanding.

Step 2. Estimate the Value of Your Home

Paying a mortgage from the sale amount of your house is a good idea unless it covers all the outstanding amount and fetches you a good profit. So, a home valuation is essential to get an idea of how much your house is worth and the prospects for clearing the mortgage. A house estimation is also important to know the amount you can save after paying the mortgage. You can navigate to Estate Agent Power to get a free property valuation service for residential or commercial properties.

Step 3. Set the Selling Price Accurately

The next step in selling a house with a mortgage is to set the price accurately. You can research the real estate market, analyse current conditions, and market predictions to price your house competitively. Pricing your property accurately helps you in finding the right buyers and also aids in fast sales. You can also consider comparing the sold house prices of similar properties to your house and then set a reasonable price.

Step 4. Market Your House by Creating an Online Listing

Once you are done with the mortgage payoff statement, home valuation, and setting the sale price, move on to the next step by creating an online listing. Listing your house on a real estate platform is a vital option to market your property. Estate Agent Power is a reliable real estate marketplace that enables you to create innovative listings and present your properties for sale to a global audience. Advertise your house efficiently on the real estate platform by adding catchy descriptions, professional photographs, 3D video tours, etc.

Step 5. Close the Deal and Pay Off the Mortgage

After listing your house online, potential buyers will start approaching you. Review and compare the offers to get the best buyer for your house. Once you agree on a deal, proceed with signing a sales and purchase agreement with the help of a solicitor to initiate the closing process. Start paying off your mortgage along with outstanding fees or closing costs. At the final closing date, a representative of your mortgage lender will remain present to receive the outstanding amount. Paying the entire amount of the mortgage before closing the deal is suggested to save on closing costs and other fees.