Most people have a mortgage on their house, so the question, “can I sell a house with a loan on it?” is fairly common. Maybe you have to relocate for work, you’ve found your dream home, or you’ve decided to pick up and move somewhere else on a whim. Regardless of why you need to move, you need to sell your home quickly. While you can sell your house if it has a loan on it, there are some things to consider first:
- What is your mortgage payout?
- Will the sale of your house cover the cost of the loan?
- If your home isn’t worth enough, can you short sale?
- Selling to an as-is home buyer.
Consult the Mortgage Lender
Before doing anything else, it’s important to consult your mortgage lender when selling your house. This will allow you to see how much you’ve borrowed to date, and how much it’ll cost to pay off your loan. Any additional costs such as interest that’s accrued on the loan or any late fees will be included in the payoff quote they give you. They’ll include a good-through date for the quote to be paid off by, and if this date passes, it’s essential to consult with your lender again to receive a new payoff quote.
Know the Value of Your Home
In an ideal world, your house’s value has increased since you purchased it. If this is the case, you’ll be able to pay off any outstanding mortgage balances and fees with the money from selling your house. The lender will draw up closing documents for you to sign for your loan and a settlement statement. After paying the payoff quote the rest of the money will be yours to spend however you’d like.
In reality, houses don’t always increase in value over the years. While not typical, some will find that their home isn’t worth the amount that they originally paid for it. This typically occurs during down markets and when the neighborhood your house is in isn’t in demand. When this happens, your lender might let you do a short sale. A short sale is when they agree to accept less money for your loan payoff quote than it is valued at. While you won’t see a profit from doing this, you’ll be able to avoid foreclosure and will be in good standing to take out another home loan in the future.
Consult an As-Is Home Buyer
An increasingly popular option for selling homes is to use a St. Louis as-is home buyer. These buyers will help you avoid the hassle of dealing with mortgage payoff quotes and stressing about your home’s value. If you choose to sell your house to an as-is home buyer, they will be able to provide you with an all-cash offer for your mortgaged house in as little as a day. This probably sounds too good to be true, but the fact of the matter is that they are a great option for selling your house the quickest and easiest.
If you’re interested in working with a St. Louis as-is cash home buyer, Evervest Home Buyers is a local favorite. We have bought more than 700 homes in the community since 1996, and we are dedicated to helping local homeowners sell their homes for the absolute most. We can make an all-cash offer for your home in as little as a day. If you’re interested in scheduling a consultation, call us at 314-730-0366 or Contact Us today!