Short Answer
Yes, you can absolutely sell your home while you still have a mortgage. The sale proceeds are used to pay off the remaining mortgage balance first, and you keep any remaining equity. This is how most home sales work. The title company or closing attorney will handle the payoff directly with your lender. If your sale price is less than what you owe, you would need to arrange a short sale or bring cash to closing to cover the difference.
Selling a home with a mortgage is the standard scenario. Most homeowners have a mortgage when they sell. The process is straightforward. When you sell, the buyer's funds go to the title company or closing attorney. They pay off your existing mortgage from the sale proceeds, then disburse the remaining funds to you. You do not need to do anything special to pay off the mortgage. The closing agent handles the payoff directly with your lender. You will need to request a payoff statement from your lender a few weeks before closing, which the closing agent will handle. If your sale price is less than the mortgage balance, you are in a short sale situation. This requires lender approval and is more complicated. If you have equity in the home, the sale proceeds will cover the mortgage payoff, closing costs, and real estate commissions, and you will receive the remaining equity at closing. The amount of equity you keep depends on your sale price, mortgage balance, and transaction costs. Your agent can provide a net proceeds estimate before you list.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Having a mortgage is normal and does not prevent you from selling. Most sellers have a mortgage, and the process is smooth. The key is knowing how much equity you have and what your net proceeds will be after paying off the mortgage and closing costs. I will provide you with a detailed net proceeds statement so you know exactly what to expect. Let us run the numbers together and see where you stand.
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