Can You Sell a House Before Paying It Off?
If you want to move but your home still has a mortgage, you probably wonder, “Can you sell a house before paying it off?” At Chattanooga Property Solutions, we help people who are wondering the same thing and asking other questions like “How can I sell my house fast in Chattanooga?”
We can help you understand how to sell your home while you still have a mortgage and maximize your sale proceeds.
Selling Your House With an Existing Mortgage
Determining when you can sell your home with an outstanding mortgage balance relies on your level of equity. Equity refers to the difference between what you owe on your mortgage and the value of your house.
Imagine you have a home worth $300,000 and $200,000 left on your mortgage. In this situation, you have $100,000 in home equity.
If you sell your home for its value, you can initiate a loan payoff to complete your mortgage obligation. You then keep whatever money you have left over after expenses, such as:
- Closing costs
- Taxes (follow these estate tax tips)
- Required repairs
- Agent commissions
- Inspection and appraisal expenses
These expenses often amount to tens of thousands of dollars. When you sell your home, ensure you have enough equity to pay these expenses and your mortgage.
Leverage Your Equity With a Cash Buyer
Can you sell a house before paying it off? If you haven’t lived in your home long, you likely only have enough equity to pay off your mortgage but not the additional fees. What can you do to avoid losing money on your home?
When you sell your home to a cash buyer, you keep 100% of your offer and don’t have to worry about consuming all your equity with fees. If the cash buyer purchasing your home is a company, it handles all the expenses, such as:
- Closing costs
- Repairs
- Paying off fines to obtain the lien release
- Dealing with problematic tenants
- Inspection expenses
- Junk removal for cluttered or hoarder homes
Since you can often close in just one week, you’ll also save money on making additional mortgage payments.
The Cash-Sale Process
What happens when you sell your home as-is for cash? You’ll experience the following three-step process:
- First contact and inspection: When you contact the cash buyer, they’ll take down your information and schedule a time to inspect your home. Once they understand your home’s value, they’ll make you a cash offer.
- Accept the offer: If you think you can find a better offer, you can shop around. However, remember the fees that will reduce your profit.
- Set the closing date: You can close in as little as seven days or as long as three months. They’ll accommodate your schedule.
Sell Your Home Today
Can you sell a house before paying it off? You can sell your house after buying it if you can pay off your mortgage with the money from the sale.
At Chattanooga Property Solutions, we help you keep your profit and secure your financial future. We’ve provided Chattanooga residents with fast and fair home offers for over 20 years.
Start the process by calling (423) 454-3070.