What Happens to Home Loan when You Sell House?

Hey,

There are many questions or doubts you might have while taking a home loan. Home loan is a massive financial commitment. You need to think about the interest rate, loan amount, loan period and more. In case you are wondering what happens to home loan when you sell house. Read my answer below. 

In case you want to sell your house before the home loan has been repaid. You will need consent or permission from the lender. You cannot sell your house until and unless the payoff amount is paid. You will need to pay the remaining loan amount and other charges for you to sell your home. Your mortgage is still there when you want to sell the house.

When you sell the house, you will be required to pay the lender. You will have to ask the lender for a “loan outstanding letter”. The outstanding loan amount will be mentioned. The buyer will have to pay off this amount. The buyer will also have to ask for a loan closure document.

Once all the dues are paid, you will get No Objection certificate. Upon receiving that the seller  authorised to execute a sale transaction and transfer the property to the buyer.

I hope your doubts about what happens to home loan when you sell house have been answered.