Losing a loved one is a time of hard decisions. What to do about their home and mortgage is often one of the biggest choices family members need to make. If you’re facing the task of assuming a mortgage after a death, it’s important to understand the process and be aware of potential pitfalls. In this guide, we’ll explain what it means to assume a mortgage, and how to move forward with confidence. When you assume a mortgage, you take over the seller’s existing loan terms. This typically includes the interest rate, remaining loan balance, and the established repayment period. Unlike a standard mortgage, when you’re buying a home with your own new financing, assuming a mortgage means you agree to step into someone else’s loan contract. In this case, the original borrower who has passed away. However, most lenders still require approval for a mortgage assumption, which involves assessing your creditworthiness. There is some flexibility when a death is involved, which we’ll discuss more below. It’s important to understand the legal framework of assuming a mortgage to ensure a smooth transition. Here’s what you need to know:Understanding mortgage assumption
The legal groundwork for mortgage assumption
