What role does the Real Estate Agent play?

The agent still assists in finding a home for sale for you that has a potentially assumable loan AND helps you write the offer for the home with the ability to assume the loan. They also negotiate on your behalf and, once in contract, help you manage the contingencies, inspections, details, and the title and escrow process. The agent will work alongside the title and escrow company and lender to ensure assumption approval. The purchase contract should clearly state the loan assumption terms.

Is a purchase and sale agreement required?

Yes. Just like a standard transaction, the assumption requires a purchase and sale contract between Buyer and Seller outlining price, loan assumption details, and contingencies. These contracts can be 25-40+ pages and the agent plays a crucial role in contract and negotiations.

How long does the loan assumption process take?

On average, 30–40 days. This timeline depends on the lender’s review of the buyer’s credit, income, and eligibility.

What are the costs involved?

Just like a conventional home purchase, the fees include title, escrow, recording, agent and lender fees. Lenders may have other fees to deal with the Sellers lender. These fees are typically less than a traditional sale because the existing loan already has title insurance and is already recorded.

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