To purchase a second-hand home with an existing mortgage, first verify the seller’s mortgage details through a title report or lender confirmation. Secure pre-approval to demonstrate financial readiness, then negotiate with the seller and their lender to assume or pay off the mortgage. Ensure the title is clear and arrange for a home inspection to uncover potential issues.

This process is critical because homes with existing mortgages often require coordination between the seller, lender, and buyer to avoid transaction delays or default risks. According to the National Association of Realtors (NAR), 76% of U.S. home purchases in 2022 involved existing mortgages, highlighting the need for thorough due diligence. Fannie Mae data shows that 35% of mortgage assumption requests fail due to lender restrictions or title defects, underscoring the importance of verifying loan terms and title clarity. Additionally, the American Title Association reports that 22% of real estate transactions face delays due to undetected liens or encumbrances, which could escalate costs or terminate deals. Pre-approval reduces offer rejection risks, as 68% of sellers prioritize pre-approved buyers (Zillow, 2023). Engaging a real estate attorney or title company early mitigates legal exposure, as 15% of mortgage-assumption disputes involve improperly handled paperwork (Federal Housing Finance Agency, 2022). By addressing these factors proactively, buyers minimize financial and legal risks while securing favorable terms.