Can You Sell a House with a Mortgage?

By Mark Spain Real Estate

People move homes for various reasons. Whether relocating for a job or upsizing for a growing family, it’s common to bounce from home to home in just a few years. However, this usually means you’ll have to sell a house with a mortgage, as loan terms last an average of 15-30 years. 

As a homeowner, you may contemplate whether you can move while paying off your existing home loan. Luckily, we’re here to help walk you through the process. With decades of valuable industry experience, the experts at Mark Spain Real Estate can help you make informed decisions about selling your home with an existing loan. Below, we’ve compiled a guide on how to sell a house with a mortgage. 

Can You Sell a House with a Mortgage?

Get a Payoff Quote

If you have an existing home loan, you’ll start the selling process by contacting your mortgage lender for a payoff quote. Doing so will tell you how much of your mortgage you must pay. Generally, payoff quotes include your outstanding mortgage balance, a breakdown of any applicable fees or mortgage insurance, and the loan expiration date. Obtaining a payoff quote is essential before selling a home with a mortgage. Without one, you put yourself at significant financial risk as you embark on the selling process.

Determine Your Home Equity

After receiving your payoff quote, you’ll need to determine your home equity, or the difference between your home’s market value and outstanding mortgage balance. Doing so will help you make informed decisions on investing in your next home. If your financial goals call for higher home equity, there are ways you can gain more, including the following:

Earned Equity

As a homeowner, you can gain earned equity by promptly paying your monthly mortgage payment. Month by month, you will pay off bits of your principal, directly bringing down your overall mortgage balance. In a nutshell, you’re increasing your home equity payment by payment. 

Home Investment Equity

Home investment equity depends on your home’s market value. This value will depend on market conditions and how your home’s worth compares to similar properties in the area. Gaining this equity is out of your control as a homeowner and has nothing to do with your outstanding mortgage balance. 

Calculate Net Proceeds

Before you sell a house with a mortgage, you should determine how much you’ll profit from the sale. Generally, this amount will come from subtracting your mortgage payoff, real estate agent commission, and estimated closing costs from your home’s overall market value. Although you won’t know the exact amount of closing fees, using a placeholder value will give you a clearer idea of your projected profit. If your estimated profit is lower than expected, you can determine whether to move forward with your sale or wait until you’ve built more home equity. 

Hire a Real Estate Agent

Once you’ve officially decided to move forward with your sale, your next step is to hire a real estate agent. With exclusive industry expertise, a seasoned real estate agent will guide you through selling a house with a mortgage. When searching for prospects, you’ll want to find an agent whose experience aligns with your selling needs and goals. You discover this information by doing online research on their previous sales, reaching out to their former clients, and interviewing multiple candidates to find the best match. 

Prep Your Home for Sale 

With help from your real estate agent, you’ll start to prepare your home to hit the market. This will involve a series of critical steps to raise your home value and maximize your profit. Homeowners typically start by mapping out any needed home repairs or upgrades. Then, they’ll go through decluttering and depersonalizing their space. Closer to the market debut, homeowners will stage their homes for showings, sprucing up their interior design and curb appeal. Once you’ve completed these steps, your agent will confirm your listing price, finalize your online listing, and officially put your home on the market. 

 Sell a Home with Mark Spain Real Estate

Do you need to sell a house with a mortgage? Allow Mark Spain Real Estate to help you get the job done! With years of industry experience, our real estate professionals promise a smooth and stress-free home sale! Check out our Guaranteed Offer Program for the potential to receive a competitive cash offer on your home in only 21 days. Contact our agents today!

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