Do you need to sell your house even when you still have a mortgage on it? If you do, then it’s not impossible to do so. You only need to think about a few things and know some essential steps that go into selling a house with a mortgage. 

Can You Sell a House With a Mortgage?

Yes, you can sell a house with a mortgage. This is the second most common way to pay off a mortgage after refinancing. Most people don’t stay on their mortgages long enough to pay through to the end of the loan.

If you sell your home, you can use your money to pay off your loan balance and any closing costs associated with the sale. 

How to Prepare Your Home With a Mortgage

Before you start selling your home, you’ll need to ensure it is in the best possible condition. This may mean doing a few things to prepare your home for the market.

Have a Payoff Quote

You can’t be sure of your selling price without knowing how much your loan balance is. You can always do a loan payoff quote online to get an estimate of what your loan balance is right now.

Determine Your Home Equity

Next, you’ll want to determine your home’s equity. In other words, how much do you still owe versus how much the home is worth?

You can figure out your home equity by doing this simple calculation:

Home Value – Mortgage Balance = Equity

Be sure to include any portion of the mortgage that already has been paid off, if possible.

Make Your Home Look Great

Since you’ll likely be selling your home through an agent, you need to ensure that your home sells for top dollar. The first step is ensuring your home is clean and everything is in good repair. 

For example, you’ll want to fix any leaks in the roof, replace any broken windows and replace any worn carpets or floors. You’ll also want to remove anything unnecessary, like old furniture and items you don’t want to take to your next home.

Decide on Your Asking Price

Once you have found an agent, the two of you can sit down and decide what you want to ask for your home. Remember, you will want to get as much as possible, but you should also be realistic.

When deciding what you want to list your home for, it is a good idea to look at other homes similar to yours that have sold recently. It can also help to have a home appraiser give your home a valuation. You can then decide on the best price based on the value of other homes and your mortgage balance.

Fix Any Minor Issues

While you might not be able to do a major renovation or remodel in a short time, you can still get your home in top-notch condition by addressing any minor issues.

Typical minor issues that affect the value of a home include things like:

  • Damaged flooring
  • Missing trim
  • Missing hardware
  • Cracked interior or exterior paint
  • Cracked windows
  • Mold or mildew

Any major problems or structural issues you have, such as flooding, sewage issues or a foundation problem should be addressed before listing your home.

Ready to Sell?

Selling a house with a mortgage does not have to be daunting. An agent can help you sell your house quickly if the home is in good condition.

Additionally, if your home has a high value, you may be able to sell it even if you have a high loan balance. An agent can help you get your home ready for the market and ensure you are asking for the right amount.

By following the steps above, you can get your home ready to sell, find a buyer and pay off your loan!

Do you need cash fast for your home? Greenlight Offer is a reliable cash home buyer in Texas. Here, we understand that selling your home is an important decision for you. We ensure to give our clients the best cash offers. Get in touch with us.