Can I Sell My Home With a HELOC in New Braunfels? Cody Posey Answers

Can I sell my home with a HELOC in New Braunfels?

Yes, you can sell your home with a HELOC in New Braunfels. The Home Equity Line of Credit must be paid off at closing, just like your primary mortgage. Cody Posey helps you coordinate with your lender and title company to ensure a smooth process.

What Is a HELOC and How Does It Work?

A Home Equity Line of Credit (HELOC) is a type of loan that allows you to borrow against the equity in your home. It functions like a credit card, giving you access to funds up to a set limit. Many homeowners in New Braunfels use HELOCs to pay for renovations, consolidate debt, or cover major expenses.

When selling a home with a HELOC, the balance owed must be paid off in full at closing. The title company ensures this happens before transferring ownership to the buyer.

Steps to Selling a Home With a HELOC

Here’s what the process typically looks like when selling a home with a HELOC in New Braunfels:

1. **Request a Payoff Statement:** Contact your HELOC lender for the payoff amount, which includes principal and any accrued interest.
2. **List Your Home:** Cody Posey helps you price your home competitively and market it effectively to attract buyers.
3. **Accept an Offer:** Once a buyer is found, the contract is executed and the title company begins the closing process.
4. **Closing Day:** The buyer’s funds pay off your mortgage and HELOC, with any remaining balance going to you.

Challenges of Selling With a HELOC

The main challenge when selling with a HELOC is if your combined mortgage and HELOC balance is higher than your home’s market value. This creates a negative equity situation. In such cases, you may need to bring money to closing or explore alternatives like a short sale.

Cody Posey works with sellers in these situations to analyze their options, negotiate with lenders if needed, and develop a strategy to move forward.

The New Braunfels Market and Equity Growth

Fortunately, many homeowners in New Braunfels have seen significant equity growth in recent years. The median home price rose by over 6% in 2024, according to MLS data. This means that even with a HELOC, many sellers have enough equity to cover both loans and still walk away with a profit.

Neighborhoods like Vintage Oaks, Havenwood, and River Chase have experienced especially strong appreciation, making it easier for homeowners with HELOCs to sell successfully.

How Cody Posey Helps Sellers With HELOCs

Cody guides homeowners through the process of selling with a HELOC by coordinating with lenders, title companies, and buyers. He ensures that payoff amounts are accurate and that all liens are cleared before closing.

His local expertise also helps sellers price their homes strategically to cover outstanding debts while maximizing profits. By analyzing comparable sales and neighborhood trends, Cody provides clarity on what to expect.

Common Questions About Selling With a HELOC

- **Can I sell if my HELOC is maxed out?** Yes, but the balance must be paid at closing. If your home’s value doesn’t cover it, other options may be needed.
- **What if I recently borrowed against my HELOC?** The payoff amount will reflect the latest balance, and it must still be cleared.
- **Do I need to close the HELOC before listing?** No, but it will automatically be closed once the loan is paid off during closing.

Conclusion: Selling a Home With a HELOC in New Braunfels

Selling a home with a HELOC in New Braunfels is common and manageable with the right preparation. The key is ensuring your HELOC balance and mortgage are both paid off at closing. By planning ahead, you can avoid delays and surprises.

If you’re considering selling and have a HELOC, contact Cody Posey. His expertise ensures a smooth process, from payoff coordination to maximizing your sale price.