Do I need to tell my mortgage company if I sell my house?

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.

Often good to let your mortgage company know if you are selling the home to provide a forwarding address for any refunds that may be due to you

Its not typical to inform your mortgage company, though when selling your home it will generally be required to get a demand statement for the up to date payoff information which is in essence informing them that you are selling the home.

Yes, you do need to notify your mortgage company when you sell your home — but the process is straightforward and is mostly handled during closing. When you sell your home in Irvine, your mortgage must be paid off in full through the escrow process. The escrow company will contact your lender to request a formal payoff statement, which includes your remaining balance, daily interest, and any fees. The payoff is taken directly from the buyer’s funds at closing, so you don’t have to make any separate payments yourself.

Although escrow handles the logistics, it is still a good idea to inform your lender early. This helps ensure they prepare payoff documents on time and prevents delays, especially if your lender has longer processing timelines.

If you have additional liens—such as a HELOC or a second mortgage—those lenders also need to be notified. All liens must be cleared before the sale can close.

As top realtors in Irvine, Irene and Ricky Zhang Real Estate Group guide sellers through every step, including coordinating with lenders, escrow, and title companies. Their expertise ensures that your mortgage payoff is handled smoothly so you can sell your home in Irvine without stress or last-minute surprises.

You typically do not need to notify your mortgage company before listing your house for sale. However, once the home is under contract, your lender will be involved as part of the payoff process at closing.

At closing, the mortgage is paid off from the sale proceeds, and the lender provides a payoff statement to confirm the balance. Your attorney or title company usually handles this coordination.

If you have special loan terms, such as a prepayment penalty or a home equity loan or line of credit, it’s a good idea to review your loan documents so there are no surprises.

Yes — you do need to keep your mortgage company in the loop when you sell, but the good news is you usually don’t have to make a big announcement with confetti and a press release. In North Carolina, it’s typically handled as part of the closing process.

Here’s how it works in real life:

Why your lender needs to know

Your mortgage is a lien on the property. When you sell, that lien has to be paid off and released so the buyer can take clean title. That payoff happens at closing.

What actually happens (NC closing flow)

In NC, the closing attorney (or title company, depending on the setup) does the heavy lifting:

* They order an official payoff statement from your mortgage servicer/lender
* They pay off the loan from your sale proceeds at closing
* Your lender then issues a release/satisfaction of deed of trust after the payoff posts

So in most cases, you’re not personally calling your lender to “report” the sale — the closing attorney coordinates it.

When you should proactively contact your mortgage company

Even though the closing attorney will request payoff, it’s smart to reach out if:

* You have autopay set up (you don’t want an extra draft after closing)
* You have a HELOC/2nd mortgage (these also need payoffs and releases)
* You’re in forbearance, loan modification, or a repayment plan
* Your loan is behind (to avoid surprises with fees/interest)
* The loan was recently transferred to a new servicer (happens a lot)

A couple quick seller pro tips

* Don’t turn off homeowners insurance until after the deed records and closing funds. The lender may require it up to the payoff, and you don’t want a coverage gap.
* Ask for payoff details early if you’re tight on proceeds — payoff interest is calculated daily, and the “net sheet” can shift.

Bottom line

You don’t need to formally “notify” your mortgage company in some special way, but your mortgage company will be involved because they must provide the payoff and release the lien. In NC, that’s normally handled by the closing attorney — you just want to make sure autopay and any second liens are addressed so nothing lingers after closing.