Are you wondering if it’s okay to sell your house before paying off your mortgage? Well, most homeowners sell their houses before paying off their mortgage since most mortgage loan terms last for 30 years, and not all homeowners stay that long in their homes.
Although you can sell your home before paying off your mortgage loan, there are some essential things to consider before putting your house up for sale. First, consider working with a financial advisor to find the best way to sell your home.
What to Do Before Selling Your Home
Before you put your house up for sale, you must first contact your mortgage lender and make inquiries about your current mortgage payoff amount. The amount you get is valid for 10 to 30 days before the interest increases and changes. Knowing your outstanding loan balance helps determine a better selling price. Also, you’ll need to use the money gained from your home sales to pay off your mortgage loan.
Another thing to do before selling your home is to review your mortgage loan paperwork and search for due-on-sale clauses. Due-on-sale clauses protect lenders by ensuring homeowners either pay their mortgage loan after selling their home or transfer their deeds to the new buyer.
Your lender will only be involved in the home-selling process to ensure that your loan is fully paid before your home is occupied by someone else. However, they cannot dictate who you can or can’t sell your house to.
The Process of Selling Your Home
If your lender doesn’t link you with a title company, the next thing to do is hire an agent to ensure there’s no problem with your property’s title. You’ll need to submit your mortgage payoff amount and your account number to your title agent. After signing all the documents required for closing your home, your title agent can send off your final mortgage payment and proceed to transfer the title to the buyer.
After selling your home and paying off your home loan, you’ll ideally have enough money to cater to other needs.
Possible Setbacks
The home process may be seamless. However, you may face some hindrances. For instance, you may be charged by your lender for prepaying your mortgage. The consequence is that you’ll have to pay the penalty and your last mortgage bill. If you can’t afford that, you must review your options with your lender.
Also, if you have negative equity, that is, if you owe more than the worth of your home, you won’t be able to pay off your mortgage from the proceeds of your home. The best option at this point is to pay off your loan first before trying to sell your home.
Mortgage Tips
You need a financial advisor to guide you on selling your property. Finding a reliable financial advisor shouldn’t be difficult because, at Best Offer OKC, we give the best advice on how to sell your home with a mortgage in Oklahoma City.
Also, we buy houses Oklahoma City at the best prices and pay in cash. If you’re looking for an advisor who can help you achieve your financial goals, we’re at your service. Also, if you’re looking to sell my house fast Oklahoma City, we’re your best option.