Homebuyers can avoid loan costs with a mortgage loan assumption. Consider that a new mortgage loan can cost the buyer at least $1,000; sometimes closing costs can add up to 5% of the sales price. By assuming an existing loan, the buyer only has the usual sales expenses and none of the lender and financing charges. This can save the buyer more than $1,000.
However, the buyer must not skimp on attorney costs. Because of the complexity of this maneuver, a competent real estate attorney is absolutely necessary.
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