The Complete Assumable Mortgage Checklist for Buyers

Alright, you've decided to pursue an assumable mortgage. Here's your complete checklist so you don't miss anything.

Before You Start Searching

Financial Prep:

• [ ] Pull your credit reports from all three bureaus. Dispute any errors.
• [ ] Know your credit score. 620+ is the target for smooth processing.
• [ ] Calculate your DTI ratio. Add up all monthly debt payments and divide by gross monthly income. Under 43% is ideal.
• [ ] Determine your cash reserves. How much can you put toward the equity gap?
• [ ] Research second mortgage options if you'll need financing for the gap.

Documents to Gather:

• [ ] Last 2 months of pay stubs
• [ ] Last 2 years of W-2s or 1099s
• [ ] Last 2 years of tax returns (if self-employed)
• [ ] Last 2 months of bank statements (all accounts)
• [ ] Photo ID (driver's license or passport)
• [ ] Proof of any gift funds (if applicable)
• [ ] Employment verification contact information
• [ ] Rental history (if you're currently renting)

Having these ready before you make an offer saves weeks. Every day you spend chasing paperwork after offer acceptance is a day added to your closing timeline.

Finding Properties

• [ ] Create accounts on Roam and AssumeList to browse nationally.
• [ ] Check our Colorado listings page for local inventory.
• [ ] Work with an assumption-experienced agent (that's me).
• [ ] Set up alerts for new listings that match your criteria.
• [ ] Define your must-haves: location, price range, minimum beds/baths, maximum acceptable rate.

Property Evaluation Criteria:

• [ ] What's the assumable rate? (Under 3.5% is the sweet spot)
• [ ] What's the remaining loan term? (20-27 years is typical)
• [ ] What's the estimated equity gap?
• [ ] Can you cover the gap with your resources?
• [ ] What are the monthly savings vs. a new mortgage at 7%?
• [ ] What's the total savings over the loan life?

Making an Offer

• [ ] Include assumption contingency in the offer.
• [ ] Specify your equity gap coverage plan (cash, second mortgage, etc.).
• [ ] Set a realistic closing timeline (60-75 days).
• [ ] Include any proof of funds or pre-approval for the equity gap.
• [ ] If VA loan: address the entitlement situation in the offer.
• [ ] Consider offering at or above asking price (the rate has value).

After Offer Acceptance

Week 1-2:

• [ ] Engage your assumption processor (UMe, Roam, or equivalent).
• [ ] Submit your document package to the processor.
• [ ] Sign credit authorization.
• [ ] Order title search.
• [ ] If using a second mortgage: submit application to second mortgage lender.

Week 2-4:

• [ ] Assumption package submitted to loan servicer.
• [ ] Respond immediately to any document requests.
• [ ] Schedule home inspection (same as any purchase).
• [ ] Review title report for any issues.

Week 4-8:

• [ ] Servicer is reviewing your application.
• [ ] Stay in close contact with your assumption processor for updates.
• [ ] Address any conditions the servicer requires.
• [ ] Second mortgage approval (if applicable).

Week 8-12:

• [ ] Receive assumption approval from servicer.
• [ ] Review closing disclosure.
• [ ] Confirm closing date with all parties.
• [ ] Arrange wire transfer or cashier's check for equity gap and closing costs.
• [ ] Final walkthrough of the property.

Closing Day

• [ ] Bring photo ID.
• [ ] Bring proof of funds (wire confirmation or cashier's check).
• [ ] Review and sign assumption documents.
• [ ] Review and sign deed transfer.
• [ ] Sign second mortgage documents (if applicable).
• [ ] Receive keys.

After Closing

• [ ] Confirm loan servicer has updated the loan to your name.
• [ ] Set up autopay for the assumed mortgage.
• [ ] Set up autopay for second mortgage (if applicable).
• [ ] File homeowner's insurance (update to your name).
• [ ] Update property tax records.
• [ ] Keep all closing documents in a safe place.

Common Pitfalls to Avoid

1. Not having documents ready. This is the number one cause of delays.

2. Underestimating the equity gap. Know the exact gap before making an offer. Factor in closing costs on top of the gap.

3. Working with an agent who doesn't understand assumptions. You need someone who's done this before. The process is different from a traditional purchase.

4. Being impatient with the servicer. They will test your patience. Stay calm, respond quickly, and let your processor handle the escalation.

5. Forgetting about the second mortgage timeline. If you need a second mortgage, start that process simultaneously with the assumption. Don't wait for assumption approval first.

This list might look long, but it's really just a structured version of a normal home purchase with a few extra steps. The payoff, saving $800-$1,200/month for 25 years, makes every item on this list worth doing.