Selling a house while still paying off a mortgage might sound complicated, but it’s a common process in real estate transactions. Are you wondering, “Can you sell a house with a mortgage??” The answer is yes!
Home Buyers of Savannah makes selling simple and stress-free. We buy houses in Rincon, and we’ll make a cash offer quickly! Let’s break down what you need to know to sell your property with a mortgage.
Understanding How Mortgage Payoffs Work
When selling a house with an active mortgage, the first step is to determine your home mortgage payoff amount. This is the outstanding balance you owe to your lender, including any accrued interest or fees. At closing, the proceeds from your home sale will go to pay off the mortgage before you can collect any remaining funds.
Home equity is the difference between your property’s value and the amount you still owe. The more equity you have, the more cash you’re likely to walk away with after covering any applicable seller’s closing costs.
Steps in Selling Your House With a Mortgage
In traditional real estate transactions, you must:
- Get your payoff amount. Contact your lender to request a detailed payoff quote. That document lays out exactly how much you owe, preventing surprises at closing.
- Calculate closing costs. Traditional sales can require sellers to pay agent commissions, taxes, and fees for transferring the property title. Home Buyers of Savannah handles all of these closing costs and expenses when you sell to us.
- Work with your lender. Notify your lender of your intention to sell. Most mortgages are straightforward to pay off at closing. However, some might require lender approval for special circumstances, like sales for less than the outstanding balance or complex loan agreements.
- Ensure the sale price covers your debt. Your sale price must be high enough to cover your mortgage and closing costs. If not, you might need to bring additional funds to closing or negotiate an alternative with your lender.
What Happens to the Proceeds?
After covering your outstanding balance and other costs, any remaining funds from the sale are yours to keep. Does the sale price not fully cover your mortgage? You’ll need to negotiate with your lender or pay the difference with the money you bring to closing.
Choose Home Buyers of Savannah to Simplify Selling With a Mortgage
The process our veteran-owned and operated business follows handles the complexities we’ve described above, including obtaining payoff information from your lender to ensure a smooth transaction. Can you sell a house with a mortgage? Certainly!
Home Buyers of Savannah buys homes for cash, regardless of their condition or your mortgage situation. Unlike traditional real estate agents, we don’t list your home — we buy it directly for cash at a fast closing! Whether you’re selling due to relocation, financial reasons, or simply ready for a fresh start, we can help you navigate the process confidently.
Contact us today to get started on your cash offer in Rincon, Georgia.
