Selling a Home with a Mortgage

When you own a home with a mortgage, as most people do, you’ll probably sell the home before the mortgage is
paid off. This typically isn’t a problem unless you owe more than what the home is currently worth.

Since your proceeds from selling the home will likely be enough to pay off your outstanding mortgage, the only
thing stopping you from selling your home before the mortgage is paid off is your lender. Keep in mind, if you have
a mortgage, you don’t own the home outright, since you pledged the home as collateral for repayment of the
mortgage.

If you are thinking about selling your home, contact your lender to ask for your current mortgage payoff amount –
and when you put your home on the market, make sure that the purchase agreement you sign for your next home is
contingent on the sale of your current home.

In most cases, you should be able to close on the sale of your old home and the purchase of your new home on the
same day.