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Joe Scherer's Blog

By Joseph Scherer | Agent in Dakota County, MN

Cottage Grove Home Sellers: Rent It Out or Sell It?

Many Cottage Grove home sellers are challenged 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 have to bring money to the closing table to pay off the remaining mortgage owed. As a result many home sellers who need to move 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 Cottage Grove

The good news today is that with the tougher real estate market, rents have gone up significantly. Renters find that they are competing with each other to rent out your home as their is a real shortage of rentals available today. Many home sellers in this position are finding that they can more than cover the expenses for owning the home with the increased amount of rents.

The goal, of course, is to rent the current home out long enough to allow the Cottage Grove 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 Cottage Grove sellers who have made the decision to rent out their house 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.

Will I qualify for a new mortgage?

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 renting or selling your current house. The process of mortgage preapproval is free, and if you decide not to proceed, there is no obligation to borrow money. 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.

Cottage Grove Information

Conveniently located just 8 miles south of Saint Paul, the city of Cottage Grove offers all the best of suburban living along with the benefits of the Twin Cities. With a population measured in the 2010 census at just over 34,000 Cottage Grove offers a wide array of affordable suburban housing. Cottage Grove high school students attend one of the four high schools, Woodbury High, East Ridge High, Alternative Learning Center, or Park High School. If you have students in middle school they would attend either Cottage Grove Middle School, Lake Middle School, Oltman MS, or Woodbury Middle School. There are recreational opportunities available for all ages with an well-planned Park and Rec department. If you're interested in buying Cottage Grove please give me a call to get out looking.

If you are considering renting out your current home, please 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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