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Rob Phyle's Blog

By Rob Phyle | Agent in Apple Valley, MN

Renting Out Your Burnsville Home To Buy Another

Many Burnsville 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 to sell your property in the
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. As a result many home sellers in Burnsville who want to move are considering the possibility of renting out their current home in order to buy a new one.

Burnsville Home Sellers: Can You Cover Your Expenses?

The good news today is that with the tougher real estate market, rents have increased significantly. Renters find that they are competing with each other to rent out a Burnsville home as their is a shortage of quality rentals available today. Many home sellers 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 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 Burnsville home 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.

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 mortgage lender can help you decide whether you should rent out or sell your current house. The process of getting preapproved is free, and if you decide not to proceed, there is no obligation to borrow money. 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.

As the 6th largest community in the Twin Cities metropolitan area, Burnsville, MN is a popular bedroom community to both Saint Paul and Minneapolis. While experiencing an explosion in population from 1970 through 2000 to over 60,000 residents, Burnsville is now pretty much built-out and its population has stabilized over the past ten years. Large employers in Burnsville include the Burnsville School District, Fairview Ridges Hospital, and Pepsi Cola but most homeowners work in the Twin Cities. Burnsville has plenty of homes for sale both for the Minnesota first time home buyer as well as the move up buyer.

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

Robert Phyle,CSP,GRI,RSA
Broker Associate, Realtor
Coldwell Banker Burnet
Cell 612-801-4657
Direct 952-997-1955
Fax 952-432-8372
7741 147th St W.
Apple Valley, MN 55124
Visit my website to find Minnesota homes for sale

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