The good news today is that with the tougher real estate market, the amount you can get for rent has increased significantly. Renters find that they are competing with each other to rent out your home as their is a shortage of quality rentals available today. Many people 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 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 guidelines for the Prior Lake 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.
Once we have a chance to meet to discuss the value of your current home it is important that you go through the process of getting prequalified for a home loan. Your mortgage broker can help you decide whether you should rent out or sell 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 through MN FHA loans, Conventional, VA, or other types of mortgage financing.
Known as the sister city of Shakopee, MN first time home buyers and move up buyers alike, the city has doubled in size over the past 20 years. The combination of Upper and Lower Prior Lakes make up the largest lake in the lower Twin Cities area. With 54 city parks and a well established Park and Rec, it seems like there is always something to do in Prior Lake. If you are looking to buy or sell a home here, please give me a call.
If you would like to discuss the reality of renting out your current home, please take a moment to call or email me for more information.
Sales Executive, Licensed Realtor in Minnesota
14451 Founders Lane
Apple Valley, MN 55124
With a focus on Apple Valley real estate and surrounding communities.