Assuming a mortgage can be a smart financial decision when buying a new home. It allows the buyer to take over the mortgage from the seller under the assumption that the terms remain unchanged. Here are 10 steps to help you through this process.

1. Determine Eligibility: Check if the mortgage is assumable by contacting the lender or checking your loan documents.

2. Review Loan Terms: Obtain a copy of the existing mortgage and review its terms, interest rate, and remaining balance to ensure it meets your needs and is a favorable option for you.

3. Compare Financing Options: Compare assuming the existing mortgage with other financing options, such as obtaining a new mortgage or refinancing, to determine which option is best for your financial situation.

4. Obtain Approval from the Lender: Contact the existing lender and discuss the assumption process. The lender will need to approve you based on your income, credit score, and debt-to-income ratio.

5. Complete an Application: Fill out an application with the lender to assume the mortgage. You’ll need to provide personal information, financial documentation, and sign necessary forms.

6. Pay Applicable Fees: There may be fees involved in assuming a mortgage, such as application fees, credit report fees, and assumption fees. Be prepared to cover these costs.

7. Undergo Credit Evaluation: The lender will evaluate your credit history and determine if you qualify for the assumption based on their lending criteria.

8. Sign Assumption Agreement: If approved by the lender, you’ll need to sign an assumption agreement that outlines the terms of the mortgage and your responsibilities moving forward as the borrower.

9. Close on Your New Home: Attend a closing meeting with your real estate agent, seller, and lender representatives to sign final documents and complete the assumption process.

10. Transfer Title and Mortgage: The title of the property will need to be transferred into your name, and the seller’s mortgage will be officially transferred to you as the new borrower.

By following these steps, you can successfully assume a mortgage and potentially save money compared to obtaining a new mortgage or refinancing. Keep in mind that not all mortgages are assumable, so it’s essential to check with the lender before pursuing this option.