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Joe Scherer's Blog

By Joseph Scherer | Agent in Dakota County, MN

How To Rent Out Your Eden Prairie Home

Many home sellers in Eden Prairie are faced with the unfortunate problem of owing more on their home than what they can sell it for. The fact is that in order to sell your property in the Minnesota real estate market today you need to pay off the entire mortgage in order to sell the home. Unless you want to arrange a short sale with your mortgage lender, this means you will bring money to the closing in order to pay off the remaining balance that you owe. Many home sellers who need to move now are considering the possibility of making their current home available to rent with the hope of buying a new house.

Benefits of Rising Rents in Eden Prairie

The good news today is that with the tougher mortgage market, the amount you can get for rent has increased significantly. Renters find that they are competing with each other to rent out a Eden Prairie home as their is a shortage of quality home rentals available today. Many home sellers are finding that they can more than cover the expenses for retaining the home with these higher rents available.

The goal, of course, is to rent out the current home long enough to allow the real estate market to recover in terms of values. Hopefully within a few years the value of your rental home will rise sufficiently to sell it for enough to pay off the mortgage. The key to accomplishing this is to see if you will qualify for a new mortgage if you have rented out your current home.

Lenders have guidelines for the Eden Prairie sellers who have decided rent out their home in order to buy another. Depending on the equity that you have in your home, a mortgage lender may or may not consider the rental income you receive when they qualify you for the new mortgage. The only way to know this is to call a lender to get preapproved.

Getting preapproved for a mortgage

Once we meet to discuss your home's current market value it is critical that you go through the process of getting prequalified for a home loan. Your MN mortgage lender can help you discover which of the options are best whether renting or selling your current house. The process of preapproval is generally free and contains no loan obligation. A good mortgage lender will be able to analyze all of the financing options available to you such as MN FHA loans, VA, conventional, or other types of loans.

The Community of Eden Prairie

Located just 12 miles southwest of downtown Minneapolis, Eden Prairie is a popular bedroom community to the Twin Cities. With a population over sixty thousand, the community has tripled in size since the 1980 census. Local business such as Digital River, Super Value and CH Robinson are headquartered here. Eden Prairie has consistently been listed in Money Magazines "Best Places to Live" in America over the past 5 years With low mortgage rates and plenty of affordable housing, this is a popular place for MN first time homebuyers and move up buyers alike. If you're looking to buy or sell a home in Eden Prairie please give me a call or send me an email.

If you want to talk about renting out your current home, please take a moment to call or email me for more information.

Joe Scherer
Sales Executive, Licensed Realtor in Minnesota 
Century 21 Premier Group 
Cell 612-991-6365 
1660 S. Highway 100, Suite #578
Parkdale Plaza
St. Louis Park, MN  55416
With a focus on Twin Cities real estate and surrounding communities.

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