When people search “ways to sell my house fast in Allentown, PA,” one of their common concerns is, “Can you sell a house before paying it off?”
The short answer is yes, and in fact, many people move before paying their mortgage in full. However, when you still owe money on the property, the sale process is slightly different than when selling a house that you own free and clear.
What Happens to Your Mortgage When You Sell?
When you sell a home that still has an outstanding mortgage balance, that loan doesn’t disappear simply because you no longer own the property.
Instead, part of the money from the sale goes directly to your lender to cover the remaining balance at closing. This is called the payoff amount. The actual amount the lender collects will likely be slightly different from the balance on your last mortgage statement because it will include recalculated interest and fees.
After paying the lender, the remaining money, your home equity, is yours to keep. For example, if your house sells for $250,000 and your payoff amount is $200,000, you have $50,000 in equity.
Don’t Forget About Closing Costs
When selling your home, you also need to budget for closing costs. These can include title fees, transfer taxes, and sometimes the commission for a real estate agent, if you’re working with a traditional agency. Selling directly to a cash buyer typically means that you won’t have to pay any commissions, which means more money from the sale goes into your pocket.
Do You Need Lender Approval To Sell Before Paying Off a House?
A common follow-up to “Can you sell a house before paying it off?” is “Does my lender have to approve the sale?”
In most cases, as long as you can pay off the mortgage balance at or before closing, your lender doesn’t need to “approve” the sale. However, if your home is a short sale, meaning that it sells for less than the payoff amount, lender approval is necessary. A direct cash buyer can sometimes help homeowners in this position by streamlining the process and making it faster.
Homerun Home Solutions LLC Makes Selling Any Home Simple
Selling your home with the help of a real estate agent can take months and often means paying for repairs or upgrades, in addition to juggling showings and inspections.
If you’re looking for a faster and easier way, Homerun Home Solutions LLC buys houses in Allentown, PA. We make fair cash offers on houses, regardless of their condition, and cover many of the costs, so you don’t have to stress about whether you’ll be able to repay your mortgage.
So, can you sell a house before paying it off? As long as the sale price can cover the remaining loan, the process is straightforward. Whatever the situation, if you have an inherited property with minimal equity, a distressed property, or you’re simply looking to downsize, call Homerun Home Solutions LLC at 484-246-4894 for help navigating the complexities of the sale.
