At Professional Home Buyers, we receive many complex real estate questions, such as, “How can I sell my house fast in Wichita?” and “Can you close a home sale without a real estate agent?” One of the most common questions clients have is “Can you sell a house before paying it off?” Discover the answer in this helpful guide so you can better navigate the home-selling process.
How to Sell Your Home Before You Pay Off the Mortgage
Unless you buy your home in cash, you’ll have to secure a mortgage from a lender and pay back your home loan over a 15 or 30-year period. Circumstances may change, and you may need to suddenly relocate before you pay off the loan. How can you go about this process?
Below is a breakdown of tips for selling your home when you still have an existing mortgage.
Determine Your Mortgage Balance
Say you bought your current home with a $200,000 loan and have paid back $50,000 in principal in the time since. This leaves you with a balance of $150,000 that you owe the lender. Not only can you sell a house before paying it off, but you can use money from the sale to pay off the remaining mortgage balance.
Price the Home Fairly
Once you know how much money you owe your lender, you can use it to influence your asking price. Be mindful of the market value when determining the listing price, and remember that a fair price is more likely to garner multiple offers.
Pay Certain Closing Costs
Both buyers and sellers have closing costs they must pay before the sale goes through. As a seller, you’re typically responsible for the following:
- Agent commission
- Prorated taxes and HOA fees
- Owner’s title policy
Finalize the Sale and Pay Off Your Mortgage
Figure out your final day in your home and provide this information to your lender. They’ll give you a payoff quote that covers the total loan balance you owe including interest. Once the sale goes through, you can use the money to pay your lender the remaining balance.
Factors to Consider Before Selling Your House
You must keep a few things in mind before selling your house. Consider the following issues before moving forward with your decision to sell.
Market Status
The real estate market constantly switches between favoring buyers versus sellers. If buyers have plenty of homes to choose from, you might not get many offers on yours. On the other hand, scarce housing could make buyers more likely to bid above the listing price to secure your home.
Future Housing
Don’t sell your home until you’re able to figure out your next move. Securing a new house can take some time in certain market conditions.
Sell Your Home with Professional Home Buyers
Not only can you sell a house before paying it off but you can also sell a property with tax liens. Contact Professional Home Buyers for reliable real estate solutions in Wichita, Kansas. Call (316) 202-1628 to learn more.