The good news today is that with the tougher housing market, rents have gone up significantly. Renters find that they are competing with each other to rent out a Savage home as their is a shortage of quality rentals available today. Many home sellers in this position are finding that they can more than cover the expenses for retaining the home with these increased rents.
The goal, of course, is to rent out the current home long enough to allow the Minnesota 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 specific guidelines for those Savage sellers who will rent out their home 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.
Once we meet to discuss the value of your old home it is critical that you go through the process of getting preapproved for a mortgage loan. Your mortgage broker can help you decide which of the options are best whether selling or renting out your current home. The process of preapproval is is usually free and contains no loan obligation. A good lender will be able to examine all of the options available to you such as MN FHA loans, Conventional, VA, or other types of mortgage loans.
Developing now into a bedroom community to Minneapolis and Saint Paul, Savage has approximately tripled in size over the past two decades. Filled with affordable homes for sale, Savage, MN has become a favorite spot to look for real estate deals for the MN first time home buyer. Conveniently located just southwest of Bloomington, living in Savage means you will have a 20-30 minute commute to some of the largest employers in Minneapolis. Since the community has a busy Park and Rec program, it seems like homeowners of Savage always have something fun to do. If you're thinking of buying real estate in Minnesota, please call me and I'm glad to help!
If you would like to discuss the reality of renting out your current home, please email me for more information.
Sales Executive, Licensed Realtor in MinnesotaÂ
Century 21 Premier GroupÂ
1660 S. Highway 100, Suite #578
St. Louis Park, MNÂ 55416
With a focus on Twin Cities real estate and surrounding communities.