COSTS OF SELLING YOUR HOME MORTGAGE BALANCE This is the remaining balance on your original home loan. You will need to pay off your mortgage in its entirety when your home is sold. HOME EQUITY LOANS (2ND, 3RD MORTGAGES) Any loan against the value of your home will also need to be paid in full after the sale of your home. PREPAYMENT PENALTIES The bank or lending institution that currently owns your mortgage title may assess a pre-payment penalty. You should speak to your lender now, ask if they plan on assessing a pre-payment penalty, and figure out exactly how much that amount is. You may be able to negotiate with your lender to reduce or waive the prepayment penalty, if there is any. You’ll also want to submit a formal pre-payment notice to your lender. PRE-SALE PREPARATIONS In most cases, it’s not advisable to make major investments in your home right before a sale. There are however, a few things that can be done to increase your home’s curb appeal, fix minor problems, and otherwise make your property more attractive. Together we can identify what items should be addressed and create a budget for these pre-sale preparations that are sure to show a significant return on investment. CLOSING COSTS All closing costs associated with the sale of your home will be listed for you and for the home buyer in the Closing Disclosure form. They buyer is generally responsible for all of these closing costs which include: • The real estate broker commissions • Loan fees for the buyer’s home mortgage • Insurance premiums • Title costs (examination and insurance) • Legal documents and services fees • Recording/filing fees In some cases, buyers make a request for you as the seller to cover their closing costs as a part their purchase offer. We will negotiate these requests if they are made and I will help you understand why it would be advantageous to cover the buyers closing costs (if it is) and what limitations we can set to make sure we know the exact net of your home sale before closing.
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