You've decided to sell your home, and the big question you've been eager to have answered is, "How much money am I going to make on the sale of my home?" But actually, the first question you should ask is, "How much do I really owe on my current home?"
Many people think the amount shown on their monthly mortgage statement provides enough information. However, while this is in the general range, it does not show the actual payoff amount because of the way interest on mortgage loans is calculated and charged.
This is a question for your current lender(s), and one you should ask at the very start of the selling process. We recommend contacting your current mortgage company and requesting a “10 Day Payoff”. By doing this, you ensure that you know the true balance of your loan(s).
And while your loan payoff may be different than you originally thought, you may have a pot of money coming back to you that you don’t even know about yet - a topic we’ll be sharing about in a future blog post.
By having this accurate information at the very beginning of the listing process, you and your Realtor® can develop a solid game plan when it comes to understanding the reality of the financial aspects associated with your home sale.