So you inherited a home, but can you keep it? You’ve never owned a home before and you’re not quite sure what happens next? You got the home, but what about the mortgage that’s tied to it?
It’s a common question amongst us who have never been in that situation before, or are unfamiliar with purchasing a home. Here’s a quick lesson on what you can expect, and the 4 major things you need to know, in order to take over the home.
When someone leaves you a home, it can be something of a double edged sword. You were left the home and the property and all the equity in the home, but you were also left the debt associated with the home. For example, let’s say someone left you a home worth 600k and they owed 400k on it. Well you are entitled to ownership of the home, and the 200k in equity so long as you can afford the 400k mortgage. Once the person passes the house over to you will generally have a time period to find financing, and refinance the debt into your name. If you can’t find financing in that period, you may be forced to sell the property to repay the debt.
That all sounds fair enough, I’m sure, but how do you know if you qualify for loan to cover the debt? That’s where a mortgage planning professional comes into play. It’s easy to speculate that you could, or could not afford the payment, but until you review the finances with your mortgage planner, it’s simply that, speculation. So, if you know that this is something that may lay around the corner for you, or this is a situation you are currently in, pick up the phone and give us a call and we can tell you the 4 things you need to know in order to qualify.
Scott Van Vugt | CLIENT CARE COORDINATOR
P | 858.863.0260 ext. 114