Can I Sell My Home If I Still Have a Mortgage?

Can I Sell My Home If I Still Have a Mortgage? Yes, you absolutely can—and many sellers do. In fact, most homeowners still have a mortgage when they list their property. The process just involves a few extra steps to make sure your loan is paid off at closing. If you’re wondering what to expect, here’s a breakdown of how it works and what to keep in mind.

Overview: Selling a Home with an Active Mortgage

Key Points:

1. Yes, You Can Sell Before Paying Off Your Mortgage

2. How the Payoff Process Works at Closing

3. What Happens If Your Sale Price Doesn’t Cover the Loan

4. How to Handle Escrow and Property Taxes

5. Tips for a Smooth Sale with a Remaining Mortgage

1. Yes, You Can Sell Before Paying Off Your Mortgage

Having a mortgage balance doesn’t prevent you from selling. Your lender gets paid first when the transaction closes, and you receive any remaining proceeds.

2. How the Payoff Process Works at Closing

When you accept an offer, your title company or closing attorney will request a mortgage payoff statement from your lender. This ensures your loan is paid in full when the transaction closes.

Example or Tip: The payoff amount may be slightly higher than your loan balance due to daily interest or fees, so don’t rely solely on your last statement.

3. What Happens If Your Sale Price Doesn’t Cover the Loan

If your home sells for less than what you owe, it’s called a short sale. This requires special approval from your lender and may impact your credit. But in most cases, especially in today’s market, homeowners have enough equity to avoid this.

4. How to Handle Escrow and Property Taxes

If you escrow for taxes and insurance, your lender may refund any unused amounts after the sale. Be sure to confirm how this is handled so there are no surprises post-closing.

5. Tips for a Smooth Sale with a Remaining Mortgage

Work with an agent who understands how to price competitively.
Request a mortgage payoff statement early.
Keep communication open with your lender and title company.

Conclusion

Selling a home with a mortgage is very common and usually straightforward. By understanding the payoff process and working with the right professionals, you can sell confidently—even if you haven’t paid off your loan.

Can I Sell My Home If I Still Have a Mortgage?