I’m embarrassed that I am a full grown adult, and don’t know how this works. I am so ignorant to it, I didn’t even know how to search Google for the question.
Basically, suppose you buy a home for $200,000 on a 30 year mortgage, and 5 years into your purchase, you manage to find a buyer who will pay $280,000. Of course, you did not pay $200,000 yet after only five years, if someone wants to buy your home.
These are optional guiding questions just so you can see how ignorant I am.
1) Do you get a check for the full 280,000 if they are able to pay in cash?
2) If they’re financing for 30 years instead (since they don’t have cash), do you have to wait 30 years to get your full amount of money? Like, does their monthly mortgage payment go to you?
3) Where does the bank come into this? Or can you bypass that?
4) What happens to the money you paid into the home during that 5 years?
In: 5
Your realtor should give you a closing statement before closing showing you estimates for all credits and debits for the transaction:
1. How much you are being paid by the buyer ($280K)
2. How much of that will be going to your lender to pay off the reading mortgage
3. Any closing costs/fees you have to pay
4. Any prorated property taxes or utilities you owe
5. Any credits coming to you from the buyer
6. Any payments bring made by you to the buyer
7. Realtor commissions
At the end will be the ESTIMATED balance that you will receive. You will get a FINAL version of this closing statement when you are at the closing and it may be a little different from the estimated one you saw earlier but it won’t be off by much. You’ll get a check at the closing for the balance owed to you after all the credits and debits have been netted out.
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