Hey, it's Jonathan, your Home Loans Made Awesome loan expert. And this is part 3 in my series on how to assume a seller's
mortgage. This time I'm going to talk about a few the challenges you may face
by doing this. You will have to be qualified to assume the loan and the
current loan servicer will be reviewing your documentation in order to determine
this. But a lot of times these servicers are in a big bank located in another
state and they may not be very easy to reach or communicate with. Secondly the
balance on the existing loan cannot be increased. Let's say the purchase price
is $250,000 but the current loan balance is $150,000 well you're going to need to come up with the extra $100,000 to get in that home.
Finally submitting an offer contingent on assuming the seller's mortgage will
probably not be as strong as an offer from someone else who has already been
pre-approved! The sellers have NO IDEA if you're qualified to assume the loan and
they don't really want to waste any time in this hot market.
You should always get
pre-approved with a local lender to show that you ARE qualified or as a backup
option. If you have any questions please reach out. Have an awesome day!.