What documents do you need to get a mortgage?

Learn what documents you need to obtain a mortgage in today’s market!
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Question by Margaret H: want to sell my house?
would it be a good idea to offer an assumable mortgage to attract buyers? I desperately need to sell my house. My mortgage payment is only $ 450 a month. wouldn’t that attract buyers?

Best answer:

Answer by effeykins
It might, however most mortgages are not assumable. Get a copy of your mortgage and read it. There are very few mortgages out there today that are assumable.

What do you think? Answer below!

3 Comments

  1. There used to be a lot of mortgages that were assumable ones. However, that is no longer the case. Check your mortgage papers out carefully and see if yours is assumable. If so, depending on various factors, that might be a benefit to a prospective buyer.

  2. Your buyer would have to qualify to assume your mortgage, IF your bank would even entertain the idea. It would be like them having to do normal financing anyways. So, in a sense, that isn’t an enticement for buyers.

  3. You cannot offer you house as having an “assumable mortgage” unless that is a feature of your original (or refi’ed) loan agreement.

    As noted by others, most loans now will offer “qualifying” assumables, at best. Non-qualifying assumables were mostly FHA loans. It is unlikely that your loan is a non-qualifying assumable if you bought in the last 12 years.

    A qualifying assumable may be what you have, but the buyer would have to qualify for this. With interest rates so low now, it is possible that the likely buyer for your house could get a better deal now.

    Lease/purchase agreement might be something to consider, but know that most of the times, these fall apart before the renter actually buys the house.

    Since your monthly payment is relatively small, can you rent out your house? Does the $ 450/month payment include taxes and insurance? If not, you will have to rent it out for enough to cover your costs.

    If you really want to sell, offer it for the lowest price possible and hope that the real estate market in your area is on the re-bound.

    Good luck.

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