Jim Hocking

Yes, you should inform your mortgage company when you decide to sell your house. It is important to communicate with your lender throughout the process for several reasons: Paying off the mortgage: When you sell your home, the proceeds from the sale will typically be used to pay off the remaining balance on your mortgage. Your lender will provide a payoff statement, which outlines the exact amount required to settle the loan, including any accrued interest and fees. Release of lien: Once the mortgage is paid off, the lender will release the lien on your property. This allows the title to be transferred to the new buyer free and clear of any encumbrances. Escrow account: If you have an escrow account for property taxes and insurance premiums, your lender will need to close the account and disburse any remaining funds after the mortgage is paid off. Prorated interest: Mortgage interest is typically paid in arrears, meaning that you pay interest for the previous month. Informing your lender about the sale allows them to calculate the prorated interest due up to the closing date of the transaction. Documentation and coordination: Your lender may need to provide documentation, such as a mortgage statement or loan payoff letter, to the title company or closing attorney handling the transaction. Keeping them informed ensures a smoother closing process. In summary, it is essential to notify your mortgage company when selling your home to ensure a seamless transaction and proper settlement of your loan. Your real estate agent and closing attorney can also help coordinate communication with your lender to facilitate a smooth home-selling experience.

When selling a house, you may be subject to capital gains tax on the profit made from the sale. However, the IRS provides a tax exclusion for primary residences: single taxpayers can exclude up to $250,000 of gains, while married taxpayers filing jointly can exclude up to $500,000. To qualify, you must have owned and lived in the property as your primary residence for at least two of the five years before the sale. If the profit exceeds the exclusion limit or the property was not your primary residence, you may owe capital gains tax on the amount not excluded.

To eliminate old house smell, start by addressing any underlying issues, such as mold, mildew, or moisture problems, and ensure proper ventilation. Thoroughly clean all surfaces, carpets, and upholstery to remove dust, grime, and odor-causing particles. Use air purifiers and natural odor absorbers, like baking soda or charcoal, to neutralize lingering smells. Repaint walls and ceilings with odor-neutralizing paint, and consider replacing old carpets if necessary. Regularly air out your home by opening windows and doors to promote fresh air circulation, helping to maintain a pleasant, odor-free environment.