##### Asked by: Maeve Bujaca

asked in category: General Last Updated: 18th February, 2020# What is a loan assumption agreement?

**mortgage assumption agreement**is a

**contract**between a purchaser of a real property and a seller in which the purchaser gets to take over

**mortgage**payments and obligations of an existing

**mortgage**. A

**mortgage loan assumption**will be completed only if a

**mortgage**lender accepts the transfer of

**assumption mortgage**debt.

Consequently, what is a loan assumption?

A **loan assumption** is a transaction in which a person (the “assumptor”) obtains an ownership interest in real property from another person and accepts responsibility for the terms, payments and obligations of that other person's mortgage **loan**.

One may also ask, does loan assumption hurt your credit? **Assuming** a **mortgage** will not **hurt your credit** any more than if you were to apply for a new **loan** – as long as you keep up with **your** regular **mortgage** payments and **do** not fall behind. You will, however, still need to find a lender and qualify before you are able to assume the **loan**.

In this regard, how does an assumption of a mortgage work?

When you assume a **mortgage**, you're taking over a **mortgage** payment from someone else while keeping the current terms of that payment intact. Once the **assumption** is complete, you take over the payments on a monthly basis, and the person you assume the loan from is released from further liability.

How do I get a loan assumption?

Request an application from the lender. In order to **assume** a **mortgage**, you must qualify with the current lender. Without the lender's consent, you cannot **assume** the **mortgage**. To start the process of **assuming** the **loan**, request the **assumption** package from the current lender. The seller should let you know who this is.