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Joe Scherer's Blog

By Joseph Scherer | Agent in Dakota County, MN
  • How To Rent Out Your Lakeville Home To Move

    Posted Under: Home Buying in Lakeville, Home Selling in Lakeville, Rental Basics in Lakeville  |  September 16, 2011 4:29 AM  |  638 views  |  No comments
    How To Rent Out Your Lakeville Home To Move
    Many Lakeville home sellers are challenged with the problem of owing more on their home loans than what their property is worth in today's market. The fact is that in order for you to sell your house in the MN real estate market today you need to pay off the entire mortgage in order to sell the home. Unless you want to arrange with your lender sell your home on a short sale, 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 putting their current home for rent in order to buy a new one.

    The good news today is that with the tougher housing market, rents have increased significantly. Renters find that they are competing with each other to rent out a Lakeville 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 owning the home with the increased amount of rents.

    The goal, of course, is to rent the old home out long enough to allow the Lakeville 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 to follow for those Lakeville home 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.

    Get preapproved before listing your home for sale

    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 lender can help you decide which of the options are best whether renting or selling your current house. The process of mortgage preapproval is is usually free and contains no loan obligation. A good mortgage banker will be able to analyze all of the options available to you such as through MN FHA loans, Conventional, VA, or other types of mortgage financing.

    Lakeville, MN Real Estate

    If you are thinking about buying Lakeville real estate you will want to know that Lakeville, MN is one of the fastest growing suburbs of the Twin Cities. As a suburb of the Twin Cities metro in Dakota County the population of Lakeville is now over 55,000 people according to the 2010 census. It seems there is always something to do in Lakeville, MN because of its well established Parks and Rec Department. Minnesota first time home buyers will enjoy benefit if they qualify for the Dakota County First Time Home Buyers Program If you are going to be making a move to the southern metro now is a good time to check out Lakeville real estate.

    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 
    jscherer1111@gmail.com 
    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.
    http://joescherer.21homesearch.com

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